Item 9 Labs Corp. Announces Sale of AirWare Intellectual Property to Health Defense, LLC for $1.3 MillionPress Release | 05/10/2018
SCOTTSDALE, Ariz., May 10, 2018 (GLOBE NEWSWIRE) -- Item 9 Labs Corp. (OTC:INLB) (“Item 9 Labs” or the “Company”), a leading provider of high-quality medical marijuana and developer of innovative medical cannabis treatments, today announced that it has executed an intellectual property sales agreement with Health Defense, LLC. (“Health Defense”), a Washington-state based company focused on developing wellness-oriented products, for a total purchase price of $1.3 million in cash.
Under the terms of the agreement, Item 9 will maintain a 10% ownership interest in a newly formed AirWare IP company, Health Defense, LLC. In addition to the purchase price, as a stakeholder in Health Defense LLC, Item 9 will continue to receive trailing revenue from the worldwide sales of all current products and new versions that are in development. The sales and distribution entity, Protego LLC, provides 2 cents per unit sold plus 10% of annual net profits from sales to Health Defense, LLC. As part of the agreement, Item 9 will establish a new exclusive licensing agreement with Health Defense for the AirWare Labs Nasal Filtration Dilator Inserts to be infused with CBD/THC for the Medical Cannabis Sector. Item 9 intends to use the transaction proceeds for product development and general corporate purposes as the Company continues to penetrate the Medical Cannabis industry.
Bryce Skalla, Co-Founder & CEO of Item 9 Labs, commented, “The unique technology behind the AirWare intra-nasal filtration system is quickly positioning Item 9 as a leading player within the Medical Cannabis sector. We believe that this proprietary system will continue to open new doors in other industries looking for the most advanced breathing devices and delivery systems and are confident that Health Defense will succeed in bringing this IP to the forefront of these markets. We are extremely fortunate to have found a strong partner that can market and distribute this technology on a global scale, while we utilize the transaction proceeds for the continued development of our enhanced cannabinoid dosing and delivery.”
Dan Voetmann, Co-Founder of Protego LLC and Health Defense LLC, stated, “According to a recent May 1, 2018 CNN article that referenced a study from the World Health Organization, nine out of every 10 people on the planet breathe air that contains high levels of pollutants and kills 7 million people each year. The amazing intra-nasal filters developed and patented by AirWare are comfortable, discreet, affordable, and an effective solution to pollution, allergens, germs and viruses. Securing this IP ensures continued product development along with the rapidly expanding sales from our worldwide distribution partners. We are excited to be part of this effort which can help to improve the health and longevity of people worldwide.”
About Item 9 Labs Corp.:
Item 9 Labs Corp. (OTC:INLB) is focused on the development of technology and products that administer high-quality medical marijuana through a novel, proprietary intra-nasal delivery system to deliver significant health benefits. The Company is headquartered in Southern Arizona where it owns and operates 50 acres, one of the largest properties in the U.S. zoned to grow and cultivate the medical marijuana flower. Item 9 has a proven track record of providing consumers with high-quality medical marijuana flower and products focused on organic, cost-effective solutions for whole body health. By combining high-quality, medical-grade product with the Company’s proprietary nasal mucus-membrane delivery system, Item 9 plans to produce the industry’s first market medicated nasal delivery device that administers specific cannabinoid dosing to meet the growing demand of today’s modern Cannabis consumer.
Forward-Looking Statement: This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, including, but not limited to, risks and effects of legal and administrative proceedings and governmental regulation, especially in a foreign country, future financial and operational results, competition, general economic conditions, proposed transactions that are not legally binding obligations of the company and the ability to manage and continue growth. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include the introduction of new technology, market conditions and those set forth in reports or documents we file from time to time with the SEC. We undertake no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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