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Auxly Congratulates Streaming Partner CannTx Life Sciences on Obtaining Cultivation Licence
VANCOUVER, British Columbia, July 17, 2018 (GLOBE NEWSWIRE) -- Auxly Cannabis Group Inc. (TSX.V:XLY) ("Auxly" or the "Company") is pleased to announce that Auxly’s streaming partner, CannTx Life Sciences Inc. (“CannTx”), has been granted a cultivation licence for its production facility in Puslinch, Ontario pursuant to the Access to Cannabis for Medical Purposes Regulations.
Chuck Rifici, Chairman and CEO of Auxly commented, "We want to congratulate the team at CannTx on obtaining their cultivation licence! This represents a major milestone and achievement for CannTx and for the broader Auxly business strategy. CannTx’s approach to cultivation, through a focus on micropropagation and LED enabled vertical farming, makes CannTx a unique project for the Auxly platform and we could not be more pleased to have them as a partner.”
DEAL TERMS WITH CANNTX
Pursuant to the definitive agreement entered on December 22, 2017, the Company has provided CannTx with $5,000,000 related to the initial costs for the phase I construction of CannTx's 30,000 square foot facility. In addition, the Company will provide CannTx with $7,000,000 related to the phase II expansion of the facility, subject to the Company completing satisfactory due diligence and the parties agreeing to a construction budget and timeline for the phase II expansion. The phase II expansion is expected to increase the cultivation area of the facility from approximately 10,000 square feet to effectively 24,000 square feet of pure cultivation space by using innovative vertical grow technology.
In consideration for the financing, the Company received a minority equity interest in CannTx and an entitlement to 33% of all cannabis (or cannabis-derived products including any cannabis trim) produced at the facility for a period of 10 years from the date of first sale at a fixed cost.
ON BEHALF OF THE BOARD
"Chuck Rifici" Chairman & CEO
About Auxly Cannabis Group Inc. (TSX.V:XLY)
Auxly Cannabis Group is a collective of entrepreneurs with a passion for the cannabis industry past, present and future. Our mandate is to facilitate growth for our partners by providing them with financial support and sharing our collective industry experience. Our partners all have different visions, voices and brand values, and all share a common goal—to build a world-class industry based on ethics, diversity, quality and innovation.
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Sarah Bain, VP External Affairs
Founded in 2013, CannTx is a privately-owned Canadian company and is a licensed producer under the Access to Cannabis for Medical Purposes Regulations. CannTx is equipped to become the only commercial scale producer of micropropagated inputs for sale to licensed producers, as well as for use in its own state-of-the-art facility, located in the heart of Canadian cannabis cultivation. The CannTx solution involves harnessing biotechnology (specifically micropropagation and vertical farming) for Cannabis cultivation, which results in improved consistency of product, enhanced safety, greater selection, better availability and the ability to respond to changing consumer preferences.
For more information about CannTx and its management team, please visit: https://www.canntx.com or contact Josh Gerstein, Vice President of Corporate Development at 1.416.459.6900 or by email at email@example.com.
Notice Regarding Forward Looking Statements:
This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or information that certain events or conditions "may" or "will" occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking information includes, but is not limited to: expectations of future growing capacity at the CannTx facility and the projected costs associated with the expansion of the facility, the completion of the planned build-out and expansion, the funding requirements for the expansion, political change, future legislative and regulatory developments involving cannabis, competition and other risks affecting the Company in particular and the cannabis industry generally.
A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking information in this release including, but not limited to, whether: CannTx is able to maintain its cultivation license and obtain a sales license, general economic, financial market, regulatory and political conditions in which the Company operates will remain the same. Additional risk factors are disclosed in the revised annual information form of the Company for the financial year ended December 31, 2017 dated May 24, 2018.
New factors emerge from time to time, and it is not possible for management to predict all of those factors or to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information. The forward-looking information in this release is based on information currently available and what management believes are reasonable assumptions. Forward-looking information speaks only to such assumptions as of the date of this release. In addition, this release may contain forward-looking information attributed to third party industry sources, the accuracy of which has not been verified by the Company. The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. Readers should not place undue reliance on forward-looking information contained in this release.
The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.