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Still lots of upside here...
Latest acquisitions is big!
Let’s roll!!!
Making big moves. Your right, a steal at these prices.
www.nationalinflationassociation.com
Inflation.us
NIA just released this as their top CBD pick for 2019. It's going to run for sure.
We might see a nice run here!!
Seismic eruption! We still percolate. GLTA
Alternate Health to Launch Cannabis Extraction at 60,000 SF State Licensed Facility in California
8:55 am ET March 28, 2019 (PR Newswire) Print
Alternate Health Corp., ("Alternate Health" or the "Company") (CSE:AHG) (OTCQB:AHGIF), an international leader in technology solutions for the regulated cannabis industry, announced today that the Company has signed two agreements to launch operations at a state licensed 60,000 square foot cannabis extraction facility in Adelanto, California.
https://mma.prnewswire.com/media/842622/Alternate_Health_Corp__Alternate_Health_to_Launch_Cannabis_Extra.jpg
The first agreement outlines Alternate Health's purchase of DTS Lab Services ("DTS"), a leading cannabis extracts company with over eight years of experience operating in California's medical cannabis industry. The agreement details the purchase of all of DTS's assets, extraction equipment and intellectual property, including the Dank Tank brand of extract vaporisers and cartridges. (Instagram: @danktank_official)
"We are proud to bring DTS and Dank Tank into Alternate Health's growing portfolio of California cannabis brands," says Howard Mann, CEO of Alternate Health. "DTS's expertise and experience in performing high level extractions will be invaluable as we look to capture the value-added cannabis manufacturing market."
Alternate Health intends to bring DTS under the umbrella of a new subsidiary called Alternate Extracts. DTS's management will work with Alternate Health to expand production, including relocating operations to a new licensed facility in Adelanto, California. DTS's founder, Keyan Shokraie, will continue to work with Alternate Health as the manager of the Adelanto facility.
"I am excited to begin this ambitious project with Alternate Health as we push for a leadership position in California cannabis extraction," says Keyan Shokraie, founder of DTS Lab Services. "With state licenses in place, this is the perfect location to develop a world class extraction facility."
Alternate Health has also signed an agreement with two California cannabis companies to expand, build-out and manage the 60,000 square foot Adelanto facility. Alternate Health will take a 55% stake in both companies in return for providing equipment and managing operations, including producing wholesale extracts and manufacturing Dank Tank-branded products.
The Company intends to begin CO2 extraction immediately following the relocation of DTS's assets and equipment to the Adelanto facility. Alternate Health plans to expand production to maximize capacity throughout the 60,000 square feet of already state-licensed space. Leasehold improvements and equipment ordering are underway to expand production rapidly to include distillation, ethanol-based extraction and on-site remediation and decontamination.
"These agreements give Alternate Health immediate access into high-margin cannabis manufacturing," says Howard Mann. "With 60,000 square feet of production space, Alternate Health is well positioned to be a major player in California's cannabis extraction industry."
Alternate Health's new extraction facility will complement the Company's Bionic Bee brand of flavoured cannabis extracts, creating high quality bulk extractions for the Company's product line. Originally announced in a press release on Nov. 19, 2019, Alternate Health acquired the medical cannabis extraction company Kare MMJ and their brand Bionic Bee. With expert marketing and extraction expertise developed over five years of operations, Bionic Bee is a key brand in Alternate Health's growing portfolio of California extraction businesses.
For more information on Alternate Extracts visit www.alternateextracts.com.
Terms of the Agreements
Under the agreement with Genesis Integral, Inc. and Professorganix, Inc., Alternate Health becomes a 55% owner of each company, responsible for managing extraction of hemp and cannabis at two locations in Adelanto, CA. Alternate Health will contribute a full extraction laboratory setup of over 125 items and machinery, including specialized shredding, evaporation and distillation equipment valued over $475,000. Alternate Health will manage full time operations at the facility and employ all staff and technicians.
Under the agreement with DTS Lab Services, Inc. Alternate Health will acquire 100% of the company's assets, equipment and intellectual property. As consideration for the purchase under the agreement, an initial 250,000 Alternate Health common shares will be issued to DTS along with a $48,240.84 reimbursement for equipment costs and other expenses. An additional 600,000 common shares will reserved for issuance to DTS as performance-based incentives.
Both agreements are expected to close on the equipment delivery date at the Adelanto facility, estimated to be in the third week of April 2019.
Is AHG still involved with Medmen operations in Florida?
Thanks, Great read. Hell of a company here.. Lets see the green!
If that’s what you think then everyone should sell now. Nobody is as consistently wrong as you imo.
Glta
Great moves by the company! Seems to want to change direction on the chart finally. We'll see.
A great watch. Focuses on NAC ($META) and mentions Alternate Health ($AHG) investment at 18m30s in the video. "Alternate Health will be a major player in the US." AHG and META both have participated in each others Private Placements.
https://aptnnews.ca/2019/01/15/first-nation-has-close-to-50m-invested-in-cannabis-industry/
#AHG #META #CreeNation #CannabisInvesting
NEWS - ALTERNATE HEALTH SECURES SECOND SET OF LICENSES FOR CANNABIS MANUFACTURING AND DISTRIBUTION IN LOS ANGELES
https://webfiles.thecse.com/2019.01.18_-_Sun_Valley_License.pdf?yjs1lH037enXbRUNKKdN21BNFrtIlrpN&fbclid=IwAR3BJ0tBcYbS-YdGrVIXaSprWRJq6cPP88WV47eS_RfFGiqVv866owpj6tU
Flow Kana! Humboldt marijuana company.
Meet Flow Kana, similar business model than AHG (they are ahead with their business plan) however very interesting it validates the Four Twenty Inc. business model.
https://www.marketwatch.com/story/the-weed-middleman-that-expects-to-make-billions-as-the-sunkist-of-pot-2019-01-11?fbclid=IwAR3qKJ2Mrs_96AZkaCzseIPc66buMsZ2sUGzoNKJoomkoKysOxHXNdoOK8M
Flow Kana, one of the largest legitimate cannabis distributors in California, has built relationships with more than 100 farmers in the state’s Emerald Triangle — a region consisting of Humboldt, Mendocino and Trinity counties, renowned for their pot-growing prowess — and expected to finish 2018 with revenue of $27.5 million, according to information provided to prospective investors that MarketWatch obtained
The company expects revenue to balloon to $2.26 billion by 2022, and profitability to arrive in 2020.
You have no idea what you are talking about :)
Look at recent entry into California Cannabis Space.
Relationship b/w AHG and LHS?
News Release:
Liberty Health Sciences Taps FlorPass As Florida’s First Online Shopping Portal For Its Premium Cannabis Products
(“Liberty” or the “Company”), a provider of trusted, high quality cannabis experiences, announced today that it has received approval by the Florida Department of Health to implement FlorPass as the state’s first online patient management system, connecting patients, physicians and cannabis retailers in one system to provide enhanced care.
FlorPass is developed by Alternate Health Corp
FlorPass is developed by Alternate Health Corp., an international corporation that provides software solutions for the medical cannabis industry. FlorPass is the Florida equivalent of Alternate Health’s CanaPass Cannabis Compliance technology, which is currently operational nationwide in Canada.
- https://www.newcannabisventures.com/liberty-health-sciences-taps-florpass-as-floridas-first-online-shopping-portal-for-its-premium-cannabis-products/
Relationship b/w AHG and MedMen?
News Release:
Alternate Health Signs Agreement with Medmen to Launch Statepass Beta in New York Dispensaries
https://www.prnewswire.com/news-releases/alternate-health-signs-agreement-with-medmen-to-launch-statepass-beta-in-new-york-dispensaries-675529303.html
("Alternate Health" or the "Company") (CSE:AHG) (OTCQB:AHGIF), an international corporation that provides software solutions for the medical cannabis industry, today announced that the Company has entered into a software-as-a-service agreement with MedMen, one of the largest cannabis companies in the U.S., to provide e-commerce and digital payment services. Alternate Health's StatePass system will begin beta testing with MedMen in their New York dispensaries.
"We are very pleased to be working with MedMen as Alternate Health expands into another key state in the U.S. market," said Dr. Michael Murphy, Chairman and CEO of Alternate Health. "The implementation of CanaPass in Canada as well as beta testing in Florida have seen overwhelmingly positive response from our customers and we look forward to serving the medical cannabis community in New York with our state-of-the-art system."
The StatePass system is a cloud-based software platform that manages the end-to-end transactions involved in providing safe access to medical cannabis to eligible patients. The database is accessible by the patient, certified doctors and licensed dispensaries, linked through a seamless interface, and is used to monitor the individual patient and provide enhanced treatment recommendations, with a focus on improving patient outcomes.
"Alternate Health's agreement with MedMen is perfectly aligned with our goal of bringing best-in-class software solutions to the medical cannabis market," said Jay Briggs, Vice President of Operations of Alternate Health. "This is an exciting opportunity to work side-by-side with another leading company in the cannabis industry and open up new revenue streams in New York's tremendously promising market."
NAC involved heavily w latest AHG Private placement round.
3 major participants in the last private placement round for $AHG all have direct connections to NAC. Alternative health has also participated in previous NAC PP rounds.
Here is what I have learned.
1) PI Financial Corp. ITF Paskwayak Business Development Corporation Ltd. Opaskwyak, Manitoba Bought 3.75 Million shares in the last Private Placement.
After doing some digging i noticed that Paskwayak Business Development Corporation are First Nations from the Opaskwayak Cree Nation.
- They are heavily invested in National Access Cannabis Corp.
https://ceo.ca/@nasdaq/paskwayak-business-development-corporation-acquires
- They are also invested in Trichome Financial Corp. (Specialty Finance for the Cannabis Industry)
https://www.newswire.ca/news-releases/trichome-financial-corp-announces-closing-of-private-placement-and-provides-corporate-update-692684761.html
2) PI Financial Corp.For: Mark Goliger Burlington, ON bought 125,000 shares. He is CEO of National Access Cannabis.
3) Rocco Meliambro has 750,000 shares. He is on the board of National Access Cannabis Corp
See full list of AHG Private placement participants here: https://webfiles.thecse.com/CSE_Form_9_-_NoticeofIssuanceofSecurities_-_21Dec18_-_final.pdf
Read more at http://www.stockhouse.com/companies/bullboard#qJypKkrAe8iHP0Ib.99
Up big Friday on Little VOLUME!
CSE: AHG.C
Up 20% .48 +.08 in Canada
and OTCMKTS: AHGIF
0.36 USD +0.066 (22.85%) in USA
Nice trading lately...let's see if we get a pop.
When the arm bill passes it will open the US markets regardless of market listing.
Alternate Health Corp. FL partner in this story.
https://www.fool.com/investing/2018/11/25/aurora-cannabis-and-canopy-growth-cant-enter-the-u.aspx
Just received this newsletter in the mail.
Dear Fellow Investors,
The newsletter I sent out earlier this week outlined in detail the strategic direction in which Alternate Health will be moving in the very near future. This follow up letter will report on the status of our other lines of business and how they fit into the company going forward. All of the effort, time, and resources spent in the development of these assets will give us a decided advantage in the cannabis space. Our decision to move aggressively into the cannabis market has been both timely and very well received by all who have called or written Alternate Health.
The opportunities being presented to us on a daily basis are not only exciting, but also have the potential to solidify Alternate Health as a leader in the cannabis industry in a short amount of time.
ZiApp Payment System
ZiApp is a payment processing engine specifically designed to handle the high-risk transactions that characterize the cannabis industry. Using a network of blockchain smart contracts and a fixed-exchange token, ZiApp offers a comprehensive solution to cannabis merchants who have struggled with traditional payment providers. ZiApp’s eWallet functionality is easily integrated with any retail Point of Sale system or online shopping cart, providing a comprehensive payment solution. This will be paramount in our Distribution Business as we work with farmers and dispensaries to streamline the cannabis supply chain and the movement of money going from raw materials to finished goods.
CanaPass/StatePass
CanaPass and its adaptations in the United States continue to gain traction in the medical-use cannabis market. In Florida, the recent approval from the state Department of Health and our agreement with Liberty Health Sciences has generated strong momentum. We have been actively growing our physician and patient base and have successfully processed online orders for medical cannabis through the FlorPass online shopping portal. While conversion to revenue has been slower than anticipated, we continue to enhance the system and do expect positive results in the future. The shopping portal and inventory management aspects of the system will transition nicely as we customize the software for California’s adult-use market.
Point of Sale
Our Point of Sale (POS) software was built as an extension of the CanaPass system to provide dispensaries and licensed providers with the ability to handle transactions and process payments in a brick-and-mortar retail environment. As we roll out our Distribution services in California, the POS system will be the competitive advantage for Alternate Health, giving us the ability to offer partner dispensaries a turn-key payment solution while seamlessly tracking inventory and consignment sales.
MLM Software
Our IT team has done a tremendous job in creating a Multi-Level Marketing software solution and we are now in the final stages of development. We are also in the process of evaluating several exciting CBD products to include in our offering. With the conclusion of our software development and selection of products, we will be ready to roll this program out in 2019. Our plans are to enter the CBD market when the time is right with the same level of enthusiasm that characterized our movement into the cannabis market.
Laboratory
The laboratory sector in the United States has undergone a major shift over the last 12 months. Independent labs have been forced to shut down due to new rules and decreases in payment amounts and adjudication percentages.
Alternate Health Labs was brought into the company as a cash flow generator while we matured our other lines of business. The lab performed as expected for the first 7-8 months, producing over $12 million in revenue. In late Summer of 2017, the changes in reimbursement rates began taking effect, as well as an onslaught of lawsuits against labs that were involved in the support of rural hospitals exercising their legal right to pursue a lab outreach program. Since then, the space has become increasingly litigious, with rules that have been honored for decades, changing overnight. Reimbursement rates for independent labs have fallen to unsustainable levels or cut off completely.
We tried desperately to find a way to stay involved in the industry, but our efforts were repeatedly met with pushback from the insurance companies. It is now time to move our resources away from the clinical space and incorporate our personnel, equipment, fixtures, and extensive knowledge base into the cannabis industry. In the coming months, we will be announcing work that is currently underway to accomplish this goal. Just as our other resources are dove-tailing nicely into the cannabis business model, we expect the lab will also be an ideal fit.
Conclusion
In the very near future, Alternate Health will be announcing managerial changes that will give us the leadership needed to take our Company forward. These changes will involve adding individuals with decades of experience and expertise in the cannabis sector. Also in this announcement, we will outline infrastructural changes as well as the movement of our offices to be more in line with the cannabis industry.
You will also notice a major change in our reporting to investors, as well as press releases. The new team will commit to a monthly investor newsletter that will detail all progress achieved in the period. This is an exciting time for Alternate Health. The next calendar year will prove to be the year that investors will be proud to be a partner in our progress.
Michael L. Murphy, MD
Chairman and Chief Executive Officer
November 23, 2018
Dear Fellow Shareholders:
My last letter to investors was in June, 2018 and I apologize for the delay between updates. We have been hard at work over the last 6 months, re-shaping the strategic direction of the Company and establishing a profitable business model, which I will outline for you in this letter.
Until recently, Alternate Health operated at arms-length from the cannabis industry, choosing to focus on ancillary products and services, primarily in the technology and fintech sectors. After much discussion and careful consideration, the Board made the important decision to make a shift in the Company’s strategy and become a direct participant in the cannabis industry and, in so doing, capitalize on this incredibly valuable and rapidly growing market.
With the Board’s approval, our management team took immediate action and identified several high-value opportunities to begin making a major push in California’s medical and adult-use cannabis markets. The first step in this new strategy was the acquisition of our manufacturing, and distribution licenses in Humboldt County, CA. Securing these licenses is a phenomenal accomplishment for the Company and positions us to initiate development of our own lines of premium cannabis flower as well as cannabis extracts and manufactured products, including edibles, vape pens, concentrates and more. Many other companies have spent exorbitant amounts of money to purchase their commercial cannabis licenses outright or scrambled to complete the arduous licensing application process only to be met with prohibitively long turn-around times or flat denial. Alternate Health bucked this trend and leveraged its extensive network of relationships in the cannabis industry to secure its cannabis licenses in a cost-effective and time-efficient manner.
While the Humboldt County facility is an exciting achievement, it is only the beginning—we are also in the process of finalizing the acquisition of Kare MMJ and its signature vape brand, Bionic Bee, which will give us rapid entry into the Los Angeles medical and adult-use cannabis markets. Management expects our vape business to produce an almost immediate source of long term and reliable revenue.
Alternate Health’s agreement to secure $20M in debt financing has been another exciting accomplishment. Establishing a meaningful presence in the California cannabis market is an expensive proposition and we are now in a position to make progress on our strategic priorities with strong financial backing. In addition to our debt financing agreement, the Company continues to generate positive interest in the market as evidenced by our October 31st announcement of a private placement offering of up to $5.5MCAD, which is currently oversubscribed. We will continue to evaluate new capital raise opportunities as they become available and keep investors updated.
I am thoroughly excited about the prospects ahead of Alternate Health and could not be prouder of our management team and the work they have accomplished over the past 6 months. This has been a difficult time for the Company but we have persevered and established a strong plan moving forward which we believe will bring tremendous value to the Company and its shareholders.
The opportunities that lie ahead for Alternate Health are truly exciting. We are taking a calculated and strategic approach to capturing California market share while working diligently to maximize our revenue potential. I have summarized below exactly how we plan to achieve this.
Humboldt County
For decades, California’s highest quality cannabis has been cultivated in the Humboldt County region of Northern California. Starting in the counter culture movement of the 1960s, families migrated to this remote area and began growing potent cannabis strains that would go on to bring the region fame as California’s Emerald Triangle. Today, there are over 50,000 craft cultivators in the area, many of whom are second or third generation producers. Following medical cannabis legalization, Humboldt County began to legitimize operations, winning awards and international admiration. Demand for Humboldt cannabis from urban areas has skyrocketed, especially in Los Angeles, but new regulations and licenses have made it difficult to connect production in this relatively remote area with retail markets in the city.
Alternate Health established its licensed distribution and manufacturing facility in the heart Humboldt County with the goal of resolving this disconnect between quality producers and potential retailers. Our aim is to leverage the relationships and technology we have developed to create a vertically integrated distribution network, reinforced by in-house cannabis brands, for the state’s craft producers and retailers. This integration is symbolized by the acquisition of our premium cannabis brand Humboldt Ave. We are building a streamlined “avenue” to connect the state’s finest cultivators to retailers and consumers in the greater Los Angeles area.
The system begins with our 14,800 square foot distribution and manufacturing headquarters positioned on 9 acres in Humboldt County. Here, we are establishing a state-of-the-art facility where cannabis from local growers can be delivered in bulk and packaged for sale as flower, or extracted for manufactured products. The center will also feature a commercial kitchen for creation of cannabis-infused edibles as well as a production line for vape pens and other cannabis concentrates. As the only public company with a presence in the Humboldt County community, Alternate Health gains the unique ability to label our cannabis products as “Humboldt-Grown.”
Another advantage of Alternate Health’s distribution model is our ability to joint venture with local farmers. We believe in supporting craft cultivators and are working to provide a financially-viable alternative to some of the major buyers who have recently attempted to gouge the market with exploitative purchasing tactics that leave farmers with no way to make a profit on their crop. Rather than try to squeeze cultivators with lower prices, Alternate Health plans work hand in hand with Humboldt growers in a mutually-beneficial joint venture. This will be accomplished through a revenue-sharing agreement with cultivators where a cash advance is paid on bulk cannabis flower supply and profits are split as finished goods are sold at the retail level through our blockchain software and point-of-sale systems. Our goal in this endeavor is to keep Alternate Health and the farmers on the “same side of the fence” in a working relationship that is prosperous for both parties.
Products
Alternate Health is now in the process of putting together a strong line of beautifully designed and expertly produced cannabis products. With access to the finest raw material available in the country and a team of individuals with a diverse and extensive range of experience in all aspects of cannabis production, we believe we can grow our line into a premiere brand trusted by consumers as the highest quality and most reliable products on the market.
Cannabis flower will be packaged and labelled under the Humboldt Ave brand and marketed as the premiere flower product grown and produced in Humboldt County. Alternate Health will also collect high-grade cannabis “trim” from our network of cultivators, which is the primary raw material used to create extract products. Some extraction will be done in the Humboldt facility, but Alternate Health has also acquired leading California cannabis collective Kare MMJ along with its signature line of flavored vape products, Bionic Bee. Bionic Bee boasts an established and successful business model in the LA market with a profitable retail history in multiple dispensaries. This turn key operation is an ideal fit for Alternate Health and we are eager to begin marketing a product that already has a strong reputation with California consumers. Final extraction and manufacturing will take place at Bionic Bee’s new facility in Sun Valley, located in the Greater Los Angeles area. Extract products are a powerful growth market, with significantly higher margins on finished goods. In its function as a manufacturer, Alternate Health has the opportunity to maximize its relationships with cultivators, buying trim in addition to flower, while offering a wider range of products to offer dispensary affiliates.
In addition to retail products, Alternate Health will also position itself as a major supplier of wholesale goods. The market is flush with companies eager to create branded products but lacking the equipment and expertise to secure the necessary raw materials. This applies to both quality cannabis flower and reliable cannabis extract. Alternate Health has an opportunity to capitalize on this rapidly growing sector and become a leading supplier of wholesale cannabis.
Technology
Current financial systems represent a major obstacle standing in the way of California’s cannabis industry. Due to asymmetry between federal and state law on the legal status of cannabis, federally regulated financial institutions are barred from participating in the market. This has left the industry reliant on cash-based payments and financing, with widespread implications on the efficiency, transparency, and safety of how business is done. Without access to traditional credit markets, many cannabis businesses are forced to continue operating in the grey market, while licenses are snapped up by the few California or Canadian cannabis company who have raised capital privately. What we are seeing is the rise of an underground cannabis cultivation and retailing industry, with little connection to the cultivators, quality, and community that continues to drive consumer preference in the industry.
Alternate Health’s solution is simple: establish a system of connectivity in the cannabis community with the best software in the industry. Over the years, Alternate Health has developed the best cannabis inventory management, point-of-sale, blockchain payment, and tax administration software. These technologies form the basis of our system which is offered to cultivators and retailers free of charge as an additional incentive to do business. Alternate Health’s software solutions facilitate digital transactions through our blockchain-powered payment engine, Zi App, with the ability to track inventory, sales, payments and taxes. Using a system of programmable smart contracts and fixed-value virtual currency, Alternate Health’s software automatically calculates and splits payments, including revenue sharing and tax remittance. For example: when a consigned cannabis product is sold to a consumer by a partner dispensary, our software calculates the total payment accepted and automatically transfers grower and retailer profit share, state taxes, and transaction fees into the appropriate user accounts in real time. All participants in the supply chain receive secure, accurate and timely payments, enabling a trusted system of consignment sales throughout the network.
Social Equity Program
Recent developments in Los Angeles’s regulatory environment have created a new set challenges on the retail side of the adult-use cannabis industry. However, where there are challenges, we see opportunities. The City of Los Angeles is currently transitioning away from the previous “grey-market” dispensary model, issuing new retail licenses and permits. The majority of these licenses and permits will be issued through the City of Los Angeles’s Social Equity Program. City legislators understand that the War on Drugs damaged the lives of disadvantaged communities, with low-income and minority individuals unfairly targeted for convictions. In an effort to right the wrongs of the past, the Social Equity Program will grant over 300 licenses to low-income applicants from disadvantaged areas of the city, with a preference for those with a prior, non-violent cannabis conviction.
The final step in Alternate Health’s distribution plan is to support Social Equity Applicants. Since applicants are required to have low-incomes, and many will have cannabis convictions, Alternate Health expects few applicants will have the required capital and business experience to establish successful retail operations. With this in mind, we are constructing a unique model designed to offset start up costs with capital infusion and ensure a smooth transition to entrepreneurship. Successful applicants will receive the support of Alternate Health’s software systems, offering automated reporting and accounting features, including tax administration. Most importantly, Alternate Health will offer cannabis flower and extract products on a consignment basis, significantly lowering inventory costs for start-up retailers. Alternate Health’s digital payment and point-of-sale systems will allow customers to pay for cannabis with credit or debit cards, with all payments split in real time between cultivator, distributor, retailer, and the state tax authority.
Going Forward
Alternate Health has assembled all of the pieces needed to successfully execute our California business model from an operational and infrastructural perspective. The exhaustive work that has been done to develop our suite of systems and processes including, blockchain technology, digital payments, ZiApp, CanaPass, laboratory analysis, point of sale, and inventory management, will all bring a decided advantage to our Company as we strengthen our presence in the cannabis industry. This will prove especially true as we implement our payment system and consignment model in the cannabis sales funnel. By consigning products, we are positioned to attract and incentivize dispensaries who see the enormous value in having access to top quality products with no upfront inventory expenses. Simultaneously, we will control the flow of money through our integrated payment system with the ability to guarantee payout to all invested parties at the point of sale.
In my next letter I will provide an update on the status of our new model and the progress we have made in California. Alternate Health and its management team will remain focused on the effective execution of the plan I have outlined and work tirelessly to accomplish strategic priorities that will drive revenue for the Company and build value for our shareholders.
Michael L. Murphy, MD
Chairman and Chief Executive Officer
November 20, 2018
ALTERNATE HEALTH TO ACQUIRE KARE MMJ, OPERATORS OF BIONIC BEE, CALIFORNIA’S PREMIERE BRAND OF FLAVOURED CANNABIS EXTRACTS
TORONTO – November 20, 2018 – Alternate Health Corp., (“Alternate Health” or the “Company”) (CSE:AHG) (OTCQB:AHGIF), an international leader in technology solutions for the regulated cannabis industry, announced that it has today signed an agreement to acquire a majority stake in California cannabis company Kare MMJ. As part of the agreement, Alternate Health will also acquire Bionic Bee, California’s premiere flavoured cannabis extract manufacturer.
The acquisition will give the Company immediate exposure to California’s value-added cannabis market, with Kare MMJ’s 5,000 square foot extraction facility in the Greater Los Angeles area. Located in Sun Valley, part of Greater Los Angeles’s San Fernando Valley, Kare MMJ has operated as a not-for-profit under California’s collective medical marijuana regulations and is currently in the final stages of converting to a for-profit company and obtaining its state cannabis license. Alternate Health expects to begin wholesale and retail sales of its products under California’s new adult-use regulations by late January 2019.
“With Alternate Health’s recent acquisition of distribution, processing and manufacturing licenses in Humboldt County, the Company is taking an aggressive approach to capturing a significant share California’s adult-use cannabis market,” says Dr. Michael Murphy, Chairman and CEO of Alternate Health. “By incorporating Kare MMJ and Bionic Bee into Alternate Health, we immediately gain invaluable market expertise and an established brand to move forward at this exciting time in the industry.”
Founded in 2015, Kare MMJ is a leading producer of cannabis extract products. Through its flagship brand, Bionic Bee, the Company has subsequently established a loyal medical cannabis following, gaining recognition for its creative flavours, ranging from Maui Mango to Orange Diesel. Alternate Health intends to build on the success of the brand, expanding throughout California’s adult-use market, including the profitable business of wholesale extraction for other California-based brands.
Proven Business Model and Revenue
Kare MMJ developed a strong customer base through its dispensary distribution channels. When the agreement closes, following Kare MMJ’s transition into a for profit company, with 66% owned by Alternate Health and 34% owned by partners involved in the City of Los Angeles’s Social Equity Program, Alternate Health will have the ability to distribute Bionic Bee’s top-of-the-line vape products in both medical and adult-use markets. The Company expects robust growth as it continues to establish the brand and develop new products for California’s lucrative cannabis industry.
“Bionic Bee has a proven, market-ready business model,” says Dr. Murphy. “With Alternate Health’s investment into cannabis distribution, processing and manufacturing, we plan on bringing Bionic Bee products to an increasing number of dispensaries across California.”
Alternate Health’s acquisition of Kare MMJ and the Bionic Bee will represent another key step forward into California’s regulated, adult-use cannabis market. Manufactured in Kare MMJ’s Sun Valley extraction facility, Bionic Bee extract products will complement Alternate Health’s recent acquisition of cannabis flower brand, Humboldt Ave. Products from both brands will be distributed through Alternate Health’s licensed distribution companies, with sourcing and processing supported by the Company’s 14,800 square foot licensed facility in Humboldt County, California.
Value Added Products
Consumer demand for extract and vape products in the cannabis industry has been growing rapidly with sales increasing 400% from 2015 to 2016* and industry experts estimate that in 2018, pre-filled vape cartridges will account for 60% of spending on cannabis extract products.** Alternate Health has already developed strong relationships with dispensary operators throughout the state and anticipates swift deployment of its product lines for sale to consumers.
Extract products garner significantly higher profit margins than cannabis flower and comprise a growing share of California’s adult-use cannabis market. Offering extract products allows Alternate Health to build a strong customer base through desirable products and distinctive flavours.
*Gilbert, Ben. “A simple, inexpensive piece of tech is upending the burgeoning marijuana industry” Business Insider. https://www.businessinsider.com/vaping-marijuana-industry-2017-7
**Kovacevich, Nick. “New Cannabis Tech Boosting Industry and Providing A Better User Experience” Forbes.
https://www.forbes.com/sites/nickkovacevich/2018/10/08/new-cannabis-tech-boosting-industry-and-providing-a-better-user-experience/#52b46a03fb5c
Terms of the Agreement
Under the agreement, Alternate Health acquires Kare MMJ along with Bionic Bee brand and related assets and intellectual property (“Bionic Bee”). Highlights include Bionic Bee product inventory, equipment and salesforce, in addition to its social media presence and flavour formulas. The transaction will close once Kare MMJ has successfully converted from a not-for-profit to a for-profit entity.
As consideration for the purchase under the agreement, an aggregate of 2,000,000 Alternate Health common shares will be issued at market price at the time of the closing. KareMMJ’s managing member, Stephen Bugbee will receive a USD$550,000 cash payment (payable in six monthly installments) and 1 million common shares of Alternate Health. Stephen recently became a related party to the Company as described below. An additional 1 million common shares of the Company will be paid to other members of KareMMJ who are not related parties to the Company. All shares issued will be subject to a hold period of four months and one day from the date of issuance.
In October 2018, Stephen Bugbee joined Alternate Health as Senior Vice President of Technology. Mr. Bugbee has also signed a 5-year management agreement with the Company to continue to manage the Bionic Bee business. His management fee will be 20% of the monthly net income from the Bionic Bee business. As Mr. Bugbee is a senior officer of the Company, the transaction is deemed to be a non-arm’s length transaction.
About Alternate Health
Alternate Health (CSE: AHG, OTCQB: AHGIF) is an international cannabis company, focusing on technology and value-added services in both medical and adult-use markets. Alternate Health’s industry-leading software systems provide the platform for the company’s diverse operations, including adult-use distribution and the first medial cannabis online shopping portal approved by the Florida Department of Health.
Alternate Health has decades of combined experience in the industry, developing deep relationships with the world’s premiere producers of high-quality cannabis and established retailers with strong customer bases in the Greater Los Angeles area. A licensed cannabis distributor and manufacturer, Alternate Health operates premium flower brand Humboldt Ave and California’s first blockchain-powered, vertically-integrated distribution network, from the Company’s nine-acre facility in Humboldt County, the world’s most famous cultivation region.
Alternate Health’s corporate office is located in Toronto, Canada, with additional offices in Venice and Humboldt County, California and San Antonio, Texas. The Company is well positioned to reinvest internal operating cash flow in its platform and product development over the long term, creating an attractive investment profile for its shareholders.
Alternate Health resides in the cannabis sector along with companies like GW Pharmaceuticals, AXIM Biotechnologies Inc., Canopy Growth Corporation, and Aphria Inc. For more information about Alternate Health Corp., visit www.alternatehealth.ca.
Investor Contact
George Mull | Director, President
1.416.607.5757
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release. Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as “forward-looking statements”. Forward-looking statements may be identified by words including “anticipates”, “believes”, “intends”, “estimates”, “expects” and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company’s future operations, business prospects, anticipated growth and potential revenues, derived from the Bionic Bee asset purchase are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.
They need an IR firm no doubt. With the expenses they incur every quarter they can afford one!
Ru holding here? You’ve been very high on this since it was 1$?
Good team and what looks like a nice base building chart.
They have an excellent team in place now. Yes they can use some PR boosting e
New president has some decent credentials. Should be interesting to see what they can pull together in California with his contacts and experience. Perhaps he'll even hire a new VP of marketing....who in turn can hire a PR person...who in turn can give investors regular updates?
Although my mother always told me "if you don't have anything good to say don't say anything at all"
Nice uptick in volume and demand. What’s the talk on the news? I like what I see happening!
Great start here today. I'd be careful about labeling life changers because sometimes it's not the way you want it changed! :)
But it scares me to hear that because it usually means you are in love with the stock and hence decisions are made off the heart instead of with pure investor insight.
I have looked into your pick...Just can't pull the trigger on it after 300% run in a month. Maybe after it pulls back a bit.
You should have told us about this 40 days ago!! :)
Buy it they all started buying around 2 cents I bought more today
I’ve looked at it cause of Macod and jackpot, but never bought any cause I’m as you say “all in”! But not totally
AMF some day I agree
LVV I sold today to buy more of my life changer
And for my life changer read my post it’s basically the only board I post on
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Alternate Health Four Twenty Inc. Welcome to california!
Four Twenty Inc. is situated in the heart of California Humboldt County. One of the worlds most famous cultivation areas. An award winning region of California where all the premium top shelf marijuana is cultivated.
The Emerald Triangle represent a marijuana economy of more than 400m$ per year.
Four Twenty Inc.
-15 000 sqrft facility
-9 acres of land
-Cannabis distribution, manufacturing, processing, cultivation licenses.
-Large network of growers (70 artisan cannabis growers) producing over 50 000kgs of premium top shelf marijuana dedicated exclusively for Four Twenty Inc. to process, distribute, and sell.
INVESTOR UPDATE - NOVEMBER 2018 - Date: November 20, 2018
Specifically talks about their Cannabis strategy and execution in Humboldt County!
https://www.alternatehealth.ca/docs/2018-11-20-Investor_Letter.pdfVolume | |
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