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Re: cnote420 post# 441

Friday, 07/13/2018 1:25:24 AM

Friday, July 13, 2018 1:25:24 AM

Post# of 2339
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Sales last 3 months $5,665

The Company reached a definitive agreement with Global Damon Pharma (GD Pharma) of South Korea, to distribute
and sell Abattis's product lines exclusively in South Korea. The agreement allows GD Pharma to begin sales of Abattis
products in South Korea effective immediately.

The Company signed a definitive agreement with Emerald Health Therapeutics Inc. (“Emerald”) involving the wholly
owned Abattis laboratory subsidiary, Northern Vine Canada Inc. The agreement allows Emerald to use Northern Vine
as its primary testing facility. Under the terms of the agreement, Emerald becomes the majority shareholder in
Northern Vine. In acquiring this majority interest, Emerald adds to its integrated portfolio that includes its recent
joint venture with Village Farms International to retrofit a 1.1-million-square foot, high-quality, low-cost production
facility in Delta, B.C., to grow cannabis. Upon completion of full licensing and greenhouse conversion, the facility is
expected to yield more than 75,000 kilograms of product annually.

The Company completed experiments confirming column chromatography extraction technology. The experiments
assessed the feasibility of applying the technology for the extraction of cannabidiol, tetrahydrocannabinol and THCA
from industrial hemp and cannabis. Throughputs, yields, purity and terpene profiles were also part of the scope of
work performed at the company's facility, Northern Vine Labs. Bench scale runs were carried out in conjunction with
confirmatory larger scale runs of up to 75 kilograms of biomass per day. The technology is already being used in an
industrial-scale capacity of up to 50,000 kilograms of biomass per day. The developer of the technology is now
preparing to work with key partners to start isolating cannabinoids for the upcoming Canadian legalized market.

Northern Vine Labs, a subsidiary of Emerald Health Therapeutics Inc., and Abattis Bioceuticals Corp. have received
approval from Health Canada on an amendment to the companies' dealer's license. The license amendment gives
the company the ability to transport, deliver and sell product to other licensed dealers, authorized persons under
the Controlled Drug and Substance Act (CDSA) and licensed producers (LP). Along with the company's already
authorized activities for analytical testing, extraction and import/export, this amendment also allows Northern Vine
Labs to broaden its business opportunities through the production and sale of downstream cannabis products.

The Company signed a letter of intent with the Alliance of Beverage Licensees (ABLE BC) to establish an exclusive
complementary partnership in ABLE BC's member stores. The letter of intent outlines an exclusive agreement
between the Company and ABLE BC to offer expert technical advice regarding the commercialization of cannabis
products sold in ABLE BC member stores and locations.

The Company has formed a new partnership with Faculty Brewing Co., a Vancouver-based craft brewery, to develop
a hemp-infused, cannabinoid-rich, THC (tetrahydrocannabinol)-free craft beer. Pursuant to a research services
agreement between the Company and Faculty Brewing, the Company will conduct research and development
activities related to the development of a hemp-infused, cannabinoid-rich, THC-free craft beer, or a line of such
beers, for Faculty Brewing.

On December 22, 2017, the Company entered into a non-binding letter of intent with GT Therapeutics Corp. (“GTT”),
Winston Resources and the shareholders of GTT, providing for the general terms and conditions of a proposed
transaction that will result in the Company acquiring all of the issued and outstanding common shares of GTT in
exchange for the issuance of 5.5 million common shares of the Company to the shareholders of GTT and the issuance
of 25 million common shares of the Company to Winston Resources. The acquisition was completed on January 25,
2018. As a result of the acquisition, Green Tree is now a wholly owned subsidiary of the Company and Green Tree's
products will become available through the Company’s wholly owned subsidiary Vergence Naturals Ltd.

In connection with the acquisition of Green Tree Therapeutics, the Company issued an aggregate of 15,000,000
common shares. In addition, in consideration for the right to acquire Green Tree, which right was previously held by
Winston Resources Inc., the Company issued 15,000,000 common shares of the Company to Winston. The shares
were issued at an aggregate fair value of $20,700,000. In addition, the Company incurred $1,000,000 cash for
transaction costs. The Company recorded License cost of $22,464,203 for the fair value of consideration paid in
excess of net assets acquired and the additional transaction costs incurred.

In March 2018, the Company acquired 90% ownership interest in Gabriola Green Farms Cor. Gabriola is a British
Columbia company that has applied for a license to produce under the Access to Cannabis for Medical Purposes
Regulations on Gabriola Island, one of the Gulf Islands located in the Strait of Georgia off the coast of British
Columbia. Gabriola Island has a consistent temperature and humidity level, which makes it well suited to greenhouse
growing.

In connection with the acquisition, the Company issued an aggregate of 61,307,902 common shares of the Company
for an aggregate fair value of $25,749,319 and paid $2.5-million in cash to the shareholders of Gabriola. In connection
with the acquisition, the Company has also secured a right of first refusal on the remaining 10-per-cent ownership
interest in Gabriola from CannaNUMUS Blockchain Inc. and an option to acquire the lands on which Gabriola's
operations are conducted for $7-million until February 27, 2023, from an unrelated third-party. The Company
recorded License cost of $28,249,964 for the fair value of consideration paid in excess of net assets acquired.

As of April 30, 2018, the Company has completed its acquisition of the remaining 10-per-cent ownership interest in
its subsidiary, Gabriola Green Farms Inc. the Company acquired the interest from CannaNUMUS Blockchain Inc. for
$2.5-million. Gabriola is now a wholly owned subsidiary of the Company.

On May 3, 2018, the Company announced the engagement of Ocean Pacific Contractors Ltd. for construction of a
purpose-built, 26,000-square-foot cannabis production and extraction facility on Gabriola Island in British Columbia.
Through Gabriola, the company is in the late stages of its application for a licence to produce under the Access to
Cannabis for Medical Purposes Regulations.

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