Captiva Verde Wellness Corp (PWR)

[Oddollar]

Captiva Verde Announces Esmeralda Agreement with Mexican Health Care Workers Union for up to USD$142 Million per Year of Annual Product Sales


2020-07-27 16:27 ET - News Release

Coquitlam, British Columbia--(Newsfile Corp. - July 27, 2020) - Captiva Verde Land Corp. (CSE: PWR) (OTC: CPIVF) (the "Company" or "Captiva Verde"), is pleased to announce that further to its news release of October 2, 2019, where Captiva Verde has executed a share exchange agreement to acquire Salud Esmeralda de Mexico SA de CV, ("Esmeralda") where Esmeralda holds a comprehensive pharmaceutical license to sell, market and distribute an entire suite of 300+ pharmaceutical, health, wellness and veterinarian products which include all narcotic, psychoactive and non-psychoactive drugs listed under Groups I, II & III in Mexico, Esmeralda has today executed an agreement with the Chairman of both the 380,000 member Health Care Workers Union in Mexico and the broader 1.2 Million member Union Federation, whereby Esmeralda can expressly distribute and sell medicinal health and wellness products to the Union Federation on a direct basis, with payment from the Union.

The Amount outlined in the agreement is for up to 1.2 Million members per month at between MXN $160 to MXN $220 per month, (between MXN $2.3 Billion to MXN $3.2 Billion per year) or up to USD $142,000,000 per year of product sales. (based on 30 day MXN-USD of 22.3) Captiva Verde is 75% complete in constructing its brand new drug manufacturing facility in Mexico for preparation of manufacturing and sales to the Union Federation this coming November. Anticipated Gross Profit is 40%. The complete cost of the new building is USD $750,000.

The Share Exchange Agreement between Esmeralda and Captiva Verde calls for the exchange of 80 Million shares subject to a strict pooling Agreement. Jeff Ciachurski, the CEO of Captiva Verde will receive 22.4 Million of those shares in this agreement. The Share Exchange Agreement and its resolutions are currently waiting for the filing of a signature verification process from the Mexican Consulate in Vancouver. Covid19 had previously delayed this basic administrative function. Final approval is then subject to the Canadian Securities Exchange once the Mexican Consulate has verified the Canadian resolutions including the corporate documents of Captiva Verde.

The exact wording in the Share Exchange Agreement reads:

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Jeff Ciachurski, the CEO of Captiva Verde, states: "This is an extremely significant milestone in the history of the Company. Without question, this agreement transforms Captiva Verde as a player in the legal health and wellness business, as we execute this function to one unified buyer, avoiding middlemen, agents, dealers and brokers, offering Mexican Union Members significant cost savings that are not available in the wholesale or retail market."

On Behalf of the Board of Directors

"Jeff Ciachurski"

Jeffrey Ciachurski
Chief Executive Officer and Director