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Emblem announces proposed investment in Compass Cannabis Clinic, owner of Starbuds Canada
TORONTO, Sept. 10, 2018 (GLOBE NEWSWIRE) -- Emblem Corp. (TSXV: EMC, OTCQX: EMMBF) (“Emblem” or the “Company”), today announced its intention to purchase approximately $1 million of units (“Units”) of 10330698 Canada Ltd. d/b/a Compass Cannabis Clinic (“Compass”) at a price of $0.60 per Unit. Each Unit will consist of one common share in the capital of Compass (each, a “Compass Share”) and one-half of one common share purchase warrant, with each whole warrant entitling the holder purchase one (1) additional Compass Share at a price of $0.75 per share for a period of twenty-four (24) months, subject to adjustments in certain events.
Compass and its wholly owned subsidiary adult-use retail entity Starbuds Canada have forty confirmed leases for locations across Canada, a mix of operational clinics that are now open, in development, or in preparation with the intended use of becoming retail cannabis stores upon legalization on October 17, 2018. Starbuds Canada – licensee of the Starbuds brand name for Canada from Starbuds based out of Denver, Colorado – has an aggressive expansion plan across Ontario, British Columbia, Alberta and Saskatchewan to serve cannabis enthusiasts across Canada. A wholly-owned subsidiary of Compass, Starbuds Canada has received a cannabis retail license or a conditional license in two provinces along with a dozen retail development permits across the province of Alberta.
“Compass has a highly regarded reputation as a leading provider of cannabis education and patient-centred care. Emblem is committed to supporting Compass’ continued mission to provide the best in patient care now, and upon legalization with a new consumer audience after October 17, 2018.” said Nick Dean, CEO, Emblem Corp. “Building a strong presence in the retail environment will be key to connecting directly with consumers through customer education, product information and building brand affinity. We look forward to working with Compass to provide cannabis consumers with an exceptional retail experience.”
Emblem’s investment in Compass is subject to customary closing conditions and is expected to be completed on or about September 30, 2018.
Emblem, through its wholly-owned subsidiary Emblem Cannabis Corporation, is a fully integrated licensed producer and distributor of medical cannabis and cannabis derivatives in Canada under the ACMPR. Emblem's state-of-the-art indoor cannabis cultivation facility and research and development laboratory is located in Paris, Ontario. Led by an experienced management team of healthcare executives, accomplished marketing professionals, and cannabis experts, Emblem is focused on driving shareholder value through product innovation, brand relevance, and access to patient and consumer channels. Emblem is also the parent company of GrowWise Health Limited, one of Canada's leading cannabis education services. Emblem trades under the ticker symbol EMC on the TSX Venture Exchange.
Compass, through Compass Cannabis Clinics is a medical cannabis consultation company whose core business is focused on providing educational and consultation services to Canadians who are able to obtain cannabis from a licensed producer under the ACMPR. With a rapidly growing patient base of approximately 8,000 patients currently being served and an aggressive real estate acquisition strategy, the company aims to be one of the largest retail cannabis organizations in Canada with ongoing development strategies to expand internationally. Compass Cannabis Clinics is a licensee of the Starbuds brand name in Canada from Starbuds based out of Denver, Colorado Learn more about Compass at https://compasscannabis.ca/.
For further information contact:
Chief Financial Officer
Compass Cannabis Clinic / Starbuds Canada
For media inquiries regarding Compass Cannabis Clinic and Starbuds Canada, contact Brookline Public Relations: firstname.lastname@example.org
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes. Management of the Company believes the expectations reflected in such forward-looking statements are reasonable as of the date hereof but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Various material factors and assumptions are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Those material factors and assumptions are based on information currently available to the Company, including data from publicly available governmental sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which Emblem believes to be reasonable. However, although generally indicative of relative market positions, market shares and performance characteristics, such data is inherently imprecise. While Emblem is not aware of any misstatement regarding any industry or government data presented herein, the medical marijuana industry involves risks and uncertainties and is subject to change based on various factors.
Forward-looking statements are not a guarantee of future performance and are subject to and involve a number of known and unknown risks and uncertainties, many of which are beyond the control of the Company, which may cause the Company's actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the risks identified in the Company's December 31, 2017 Management's Discussion and Analysis, which has been filed with the Canadian Securities Administrators and available on www.sedar.com. Any forward-looking statements are made as of the date hereof and, except as required by law, the Company assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.
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