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Veritas Announces Investment Into Cannabis Growing Facility Under Health Canada License
VANCOUVER, British Columbia, Oct. 23, 2018 (GLOBE NEWSWIRE) -- Veritas Pharma Inc. (CSE: VRT; OTC: VRTHF; and Frankfurt: 2VP) (“Veritas” or the “Company”) is pleased to announce a $1.25 million investment to acquire a 25% interest in a 10,000 square foot cannabis growing facility located in Kelowna, British Columbia, and licensed under the Health Canada Access to Cannabis for Medical Purposes Regulations (“ACMPR”)
The investment is by way of acquiring shares in a holding company (“Holdco”) which has a long-term lease in an acreage in Kelowna which could accommodate up to 10 additional 10,000 square foot cannabis growing facilities. The total investment into the first building is $5,000,000. This building will accommodate up to four Micro Grow licensees each with approximately 2,100 square feet of growing capacity. Veritas is currently raising up to $2.75 million through a private placement previously announced September 20, 2018. Veritas plans to continue to expand its investment in this opportunity.
The first $5 million of net income earned from the cultivation of cannabis from the facility will be used to repay the investment in the building to the shareholders. After payback of the investment, the holding company will earn 50% of the net income with the Micro Grow licensees earning the balance.
The building is approximately 50% completed and will commence production of cannabis under the ACMPR for both medical and recreational use. Production from the facility is expected to commence within eight to twelve weeks.
Dr. Lui Franciosi, President of Veritas states that “The investment in this opportunity, provide Veritas with the ability to control the supply of cannabis required for research, and to develop and commercialize the requisite cannabis strains specific to pain management, and eventually to assist in the treatment of other diseases and maladies. To manufacture effective medicine, it is important that the quality of the cannabis supply remains equally consistent. This investment assures the requisite quality. In addition, Veritas is close to opening a new cannabis testing facility at its new Burnaby location. This investment secures the testing and analytics services for the Kelowna and other third-party operations. This testing service is required for the accurate labeling of cannabis products, which is prerequisite to the subsequent retailing of cannabis to the public.”
The Company would also like to announce the issuance of 1,600,000 stock options at $0.19 to officers, directors, and consultants to the Company for a term of twelve (12) months.
About Veritas Pharma Inc.
Veritas Pharma Inc. is an emerging pharmaceutical and IP development company, who, through its 100% owned subsidiary Cannevert Therapeutics Ltd. (“CTL“), is advancing the science behind medical cannabis. It is the Company’s aim, through its investment in CTL, to develop the most effective cannabis strains (cultivars) specific to pain, nausea, epilepsy and PTSD, solving the critical need for clinical data to support medical marijuana claims. CTL’s unique value proposition uses a low-cost research and development model to help drive shareholder value, and speed-to-market. Veritas’ investment in CTL is led by a strong management team, bringing together veteran academic pharmacologists, anesthetists & chemists. The company’s commercial mission is to patent protect IP (cultivars & strains) and sell or license to cancer clinics, insurance industry and pharma, targeting multi-billion-dollar markets according to Deloitte’s Insights and Opportunities.
Veritas Pharma Inc. is a publicly traded company in Canada, on the Canadian Stock Exchange under the ticker VRT; in the United States, on the OTC under the ticker VRTHF; and in Germany, on the Frankfurt exchange under the ticker 2VP.
For more information, please visit our website: veritaspharmainc.com
On behalf of the Board of Directors
"Dr. Lui Franciosi"
Dr. Lui Franciosi
President and Chief Executive Officer
Further information about the Company is available on our website at www.veritaspharmainc.com or under our profile on SEDAR at www.sedar.com and on the CSE website at www.thecse.com.
Investor and Public Relations Contact
Veritas Pharma Inc.
The CSE has not reviewed, nor approved or disapproved the content of this press release.