Abattis Executes Memorandum of Agreement to Acquire 100% of Experion Biotechnologies Inc.
10/24/2016
Vancouver, British Columbia--(Newsfile Corp. - October 24, 2016) - Abattis Bioceuticals Corp. (OTCQB: ATTBF) (CSE: ATT) (the "Company" or "Abattis"), announces that Abattis and Northern Vine have entered into a Binding Memorandum of Agreement with Experion Biotechnologies to acquire up to 100% of Experion Biotechnologies Inc.
Abattis Bioceuticals Corp., and its subsidiary Northern Vine Canada Inc., expect to advance up to $5 million in the near term and $2.5 million in deferred capital to implement lab expansion and increase Abattis' proportionate share of Experion Biotechnologies. These figures are based on a number of milestones, including completion of construction of the production facility in the Lower Mainland of British Columbia, and the receipt of federal licensing to allow Experion to produce, package and ship cannabis and cannabis related products to medical clients across Canada. The funding is based on Experion's commitment to co-invest significantly in the construction of its state of the art, scalable production, processing and fulfilment centre over the next 6 months.
Under the terms of the MOA Abattis can acquire up to 100% of Experion. The transaction is subject to a number of provisions, including the receipt of the approval of Northern Vine and Experion shareholders, regulatory and other requisite approvals, completion of satisfactory due diligence, and the key members of Northern Vine and Experion entering into employment, consulting and non-competition agreements with Abattis.
Jim Irving, Director of Abattis states: "The Controlled Substances Lab and the Licensed Producer Facility will operate two separate and distinct lines of business, each leveraging management's extensive history, knowledge and relationships. Canadian regulators appear to be moving quickly toward mandated independent testing. Recent regulatory changes including the introduction of the Access to Cannabis for Medical Purposes Regulations are expected to result in many new markets and sales channels for both Northern Vine and Experion. We gained valuable experience from our foray into the testing business and believe that knowledge will provide terrific building blocks to success in our Canadian testing facility."
Upon approval, the LP will process, package and deliver products under its own brands or product licence holders it will carry. Sales channels such as direct patient sales are to be developed with health care practitioners. As the industry becomes more main stream, the CSL will provide expanded independent testing and extraction services for edibles, sales and distribution. The CSL is expected to be cash flow positive within the year based on indicators from health care practitioners.
About Abattis Bioceuticals Corp.
Abattis is a specialty agricultural technology and biotechnology company which aggregates, integrates, and invests in agricultural technologies and biotechnology services for the legal cannabis industry developing in Canada. The Company has successfully developed and licensed natural health products, medicines, extractions, and ingredients for the biologics, nutraceutical, bioceutical, and cosmetic markets. The Company also is also seeking to acquire exclusive intellectual property rights to agricultural technologies to be employed in extraction and processing of botanical ingredients and compounds. The Company follows strict standard operating protocols, and adheres to the applicable laws of Canada and foreign jurisdictions. For more information, visit the Company's website at: www.abattis.com.
About Northern Vine Canada Inc.
Northern Vine Labs™ is licensed by Health Canada for the possession of Cannabis and related active ingredients, as well as the production of extracts for the purpose of analysis. Northern Vine Labs™ product certification and quality assurances programs incorporate global best practices and procedures for application in the Canadian market.
ON BEHALF OF THE BOARD
"Rene David"
Rene David, CFO, Acting CEO
For further information, contact the Company at (604) 336-0881 or at news@abattis.com
