TORONTO, ON / ACCESSWIRE / September 1, 2015 / CGX Life Sciences Inc., a wholly-owned subsidiary of The Canadian Bioceutical Corporation (TSX-Venture: BCC) ("BCC" or the "Company") announces today that it has entered into a Letter of Intent with a U.S.-based lender to provide up to $7.25 million in real estate acquisition and development financing for the company's first medical marijuana project in Henderson, Nevada (located within Clark County and a part of the Greater Las Vegas market).
BCC announced on August 10, 2015 that it had signed a letter of intent to acquire the shares of a Medical Marijuana Establishment ("MME"), based in Henderson, which has been granted a provisional cultivation license and a provisional production license by the state's Division of Public and Behavioural Health. This proposed acquisition is conditional upon, inter alia, BCC arranging for applicable financing which would be satisfied with the consummation of the proposed financing announced herein.
"We believe our company's planned expansion into the Las Vegas and Nevada markets presents an opportunity for significant revenue growth and attractive returns for our company and its shareholders," states Scott Boyes, BCC's CEO. "We have identified several sites within the City of Henderson and will be making a final purchase selection this week so we can quickly proceed with a purchase, build-out and the commencement of production. Henderson is a vibrant and fast growing municipality and we look forward to working with the city to bring both new investment and employment to the community."
"As noted in our August 10th announcement, Nevada has been particularly progressive in the development of its medical marijuana ("MMJ") regulations and there is a very optimistic outlook for growth of the industry in the state. Of particular note is the reciprocity offered to out-of-state medical marijuana card holders. With over 40 million people visiting Las Vegas every year, Nevada's policy of recognizing the status of patients from other jurisdictions significantly enhances the potential size of the MMJ market in the state."
Approval of the sale of marijuana for recreational use in Nevada is scheduled to be on the ballot in next year's November voting with a widespread expectation of acceptance.
In addition to the condition of applicable financing the proposed acquisition of the MME, is also conditional on completion of formal appraisals, closing documentation, the securing of appropriate permits etc. from the municipality, formal underwriting typical to this type of transaction and final approval of the Board of Directors of BCC.
Further announcements detailing final loan amounts, terms, conditions and rate structure will be announced as they are finalized with the lender.
Additional details in relation to BCC's plan to enter into the medical marijuana sector may be found in the company's two (2) News Releases of January 7, 2015 with the most recent updates provided in BCC's News Release of May 11, 2015, Jul 8, 2015 and August 10, 2015.
About The Canadian Bioceutical Corporation
BCC, formerly Allegiance Equity Corporation, is an Ontario corporation that, for over two decades has been developing unique standardized mass-market nutraceutical products for the treatment of common ailments where present pharmaceutical treatments and over-the-counter products fail to meet the needs of patients. BCC has targeted markets having clearly identified product deficiencies and dissatisfied consumers afflicted with a variety of medical conditions. BCC obtains regulatory approval and patents for these unique compounds and formulations and may produce and distribute or license its products for royalty revenues.
BCC's principal brands are CinG-X(TM), Reliéva(TM), and Psorberine(TM) and FertaMax(TM). Additionally BCC, through its wholly-owned subsidiary BioCannabis Products Ltd. and, subsequent to receiving its MMPR license from Health Canada and as part of its planned expansion into the U.S. medical marijuana sector, intends to develop and market a series of new cannabis-based branded medicinal products to address this rapidly-evolving market.
Investors should be aware that companies cannot legally conduct a medical marijuana business in Canada without a license from Health Canada and that there is significant time and cost required to obtain such a license. As a publicly-traded company publicizing its intention to enter the medical marijuana industry, BCC urges potential investors in any company in this sector, to become familiar with the required resources and the related risks, costs implications and time required before a company will be able to begin licensed operations. There is no assurance that any company announcing its intent to enter the Canadian medical marijuana industry will be successful in obtaining a license or in creating shareholder value.
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, the Transaction and BCC's objectives and intentions. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in BCC's public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Although BCC believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, BCC disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the Policies of the Exchange) accepts responsibility of the adequacy or accuracy of this release.
For further information please contact:
Scott Boyes
President and CEO
The Canadian Bioceutical Corporation
scott@canadianbioceutical.com
(416) 840-4703
SOURCE: The Canadian Bioceutical Corporation
