Tauriga Sciences Inc. Restructures Honeywood Transaction and Establishes Licensing and Supply Agreement[url][/url][tag]insert-text-here[/tag]
Tauriga Sciences, Inc. (OTCQB:TAUG) or ("Tauriga" or "the Company"), a diversified life sciences company with interests in the natural wellness sector and in developing a proprietary synthetic biology platform technology, today announced the restructuring of its acquisition of Honeywood LLC ("Honeywood") into a License and Supply Agreement which provides Tauriga access to the Doc Green's topical cannabis cream and future products. Importantly, this restructuring also results in the full redemption of the common stock shares that were a significant portion of the Honeywood consideration under the merger transaction, which would have provided Honeywood with 15.4% of Tauriga's non-diluted shares of common stock outstanding at the time of closing, an additional 2.6% of our common stock shares to one of Honeywood's financial advisors, as well as the opportunity for the Honeywood principals to collectively earn up to an additional aggregate equal to 10% of Tauriga's common stock outstanding (utilizing the same initial Closing Date). The restructured transaction is significantly less dilutive to Tauriga shareholders because it provides that none of the 18% total common stock consideration and the up to 10% of additional common stock in the form of earn-out shares be issued to Honeywood's principals.
In addition, pursuant to the new License and Supply Agreement, Honeywood, as an independent entity, has agreed to provide Tauriga with its products, and Tauriga Sciences will also own unique formulations it has developed while working with Honeywood. Tauriga will continue to work with Honeywood LLC and Doc Green's Healing Collective to formulate and develop other effective topical formulations.
Tauriga's Chairman & CEO, Dr. Stella M. Sung states, "We are pleased to continue to derive the desired benefits from the impressive cannabis technology developed by Honeywood while regaining a significant amount of our equity to allocate towards the rapid expansion in the natural wellness and synthetic biology sectors."
Tauriga's Chief Medical Officer, Lawrence May, M.D. added, "This agreement is consistent with Tauriga's vision of using known beneficial natural products and ingredients to help people and, in turn, generate shareholder value."
Tauriga's natural wellness business also includes "Cannabis Complements," a line of non-cannabis containing dietary supplements which was launched this summer. These dietary supplements will target cannabis-related effects, such as anxiety, memory and cognitive function, and appetite control. These supplements do not contain cannabis and can be sold nationwide to further build the Tauriga brand, especially in the 23 states where medicinal marijuana is legal.
