EAPH Recent Initiatives(Added Medical MJ)
In 2018, Easton’s board of directors decided to diversify the Company’s activities and enter new market segments, in addition to its existing and new pharmaceutical business and initiatives, including real estate development and construction, food and beverage, gaming and cannabis, through a combination of strategic acquisitions and joint ventures.
Easton established a Gaming Division, a Real Estate & Development Division, a Food & Beverage Division, as well as a Cannabis Division. The Company will focus in these areas going forward and it has put in place all the infrastructure necessary to grow its business.
FRAMING:
The Company, through its Development Division, signed a service agreement during its third quarter to provide construction services to a prominent developer, for the framing of 150 homes, just outside of Toronto, Ontario Canada. The contract is for $2.6 million Canadian over the course of a few months. Revenues from the contract commenced in the fourth quarter.
CASINOS:
Through the efforts and contacts of its CEO, Easton had an opportunity to restructure the debt of an operating casino in Greece that generated over 60 million Euros per year in revenue. The Company submitted a bid to acquire 100% of the company holding the assets. During the course of its due diligence, the Company opted to withdraw its participation in the bid process. However, this initiative led the Company to an opportunity in Macedonia to enter into a joint venture for the development of a 540 room hotel/resort with a casino, including 1,000 slot machines and 50 tables games, a shopping center, health and wellness spa, conference facilities and 6 food and beverage outlets, among others. The casino approval has already been granted and the project is ready to be deployed. Easton is completing its agreements and it expects to have the transaction concluded in the 2nd quarter of 2019.
The Company has been in discussions with several service providers of gaming related services to charities with casino licenses operating throughout the United Stated. Letters of Intent have been signed and Easton expects to complete a transaction in the 1st quarter of 2019.
Easton entered into an agreement in October 2018 to acquire a fully operational video slot game, as well as bingo game content. The games are currently being developed and they will be placed in operating casinos leading to daily revenue for Easton. The games are expected to be placed in casinos in the 2nd quarter of 2019.
RECREATIONAL MARIJUANA
During the last quarter of 2018, the Company signed an LOI to acquire 100% of an operating commercial bakery and food preparation company located in Toronto, Ontario Canada, with a 40,000 square foot production facility. The bakery currently supplies major grocery and coffee chains, among others. Easton intends on expanding the existing business, as well as entering the lucrative cannabis edible market. This transaction is scheduled to be completed in the 1st quarter of 2019.
MEDICAL MARIJUANA
The Company's Cannabis Division is also in discussions with several Licensed Producers of Medicinal Marijuana in Canada and hopes to complete a strategic partnership shortly.
GEORGINA:
1124123 Ontario Limited (o/a - Alliance Group) Acquisition
In June of 2017, Easton executed an agreement with 1124123 Ontario Limited (o/a – Alliance Group). The agreement called for Easton to advance a total of $1,300,000 Canadian Dollars in cash to acquire a 50% ownership interest in 45 acres of a 135 acre property located at 6017 Smith Blvd. Georgina Township, with 90 acres zoned M3 industrial and the remaining 45 acres zoned as agricultural. The agreement also calls for a 20% to 70% ownership interest in various businesses operating on the land, which includes a business to cultivate and grow medical / recreational marijuana for the Canadian market and an aggregate / soil business. All payments were forwarded with final payment made in October of 2017 completing all terms of the agreement. Once all terms were fulfilled, Alliance commenced the operation of the disposal of clean soil on the property, while it prepared the property for the aggregate portion of the business. In the third quarter of 2018, the Town of Georgina stopped all operations on the property while they determine that the soil brought to the property was clean and does not contain any contaminants. In addition, Alliance is working on the construction of a facility for medical marijuana. Easton holds a $1,000,000 Canadian Dollar mortgage on the property of which $325,000 has been assigned to a third party creditor as security on a loan. Alliance Group have retained legal counsel to address the issues with the Town in order to resume all operations.
At this time, Easton is considering other options available to it for the use of the property, currently permitted under its zoning, such as self-storage units or a possible residential development. The property has been appraised for over $8 million Canadian.
COBOURG:
2315446 Ontario Inc. Acquisition (Cobourg Property)
Easton entered into an agreement in the second quarter of 2018 to acquire 100% of the shares of 2315446 Ontario Inc., which is a Canadian company that owns an approximately 2.7 acre parcel of land with an existing 10,000 square foot heritage mansion on the property, located in Cobourg, Ontario Canada. The Company was to pay cash to complete the acquisition, but was not able to do so at the time. The Company has since re-negotiated the terms of the purchase and the purchase is scheduled to be completed in the 1st quarter of 2019. A Definitive Agreement has already been executed and Easton has commenced the development process on the property. The zoning allows for up-to 48 residential units on the property. Easton proposes to convert the existing mansion into 6 luxury units, which approval was previously granted, as well as build a new detached building containing additional condominium units which will be sold. Cobourg is approximately 1 hour east of Toronto and it has a strong need of new residential development.
iBliss Acquisition
In late March 2017, Easton and the shareholders of iBliss Inc. executed an agreement for the purchase of 100% of iBliss by Easton Pharmaceuticals, Inc. In the third quarter of 2017, Easton issued 218,000,000 shares to the iBliss subscribers. iBliss is an established manufacturer of e-vapourizing liquids occupying approximately 20,000 square feet in Toronto, with sales throughout Canada, the United States and Europe. Revenues of iBliss have not been reflected in the financial statements as the terms of the agreement call for revenues to be paid to the subscribers until the cash component of the transaction is earned by the iBliss subscribers.
BAYER Sub-Distribution Agreement
In November of 2017, Easton Pharmaceuticals through BMV Media SA de CV closed on a sub distribution agreement with multi-national pharmaceutical company, BAYER of Switzerland. The agreement was executed with BAYER’s subsidiary company, Bayer Consumer Care for a sub-distribution agreement to sell Easton / BMV’s woman’s licensed diagnostic product VS-Sense for the national Mexico market. The agreement called for a $200,000 payment to Easton, which was received in December of 2017 and the payment of a 3% royalty on each product sold by BAYER. Product launch is expected in the 2nd quarter of 2019, with all decisions including product launch in the control of BAYER. Upon launch, Easton is to receive a further payment.
