VANCOUVER, Dec. 10, 2019 /CNW/ - GrowMax Resources Corp.
(TSXV: GRO) ("GrowMax" or the "Company") is pleased
to announce that, further to its news releases of August 27, 2019 and September 6, 2019, the Company is in the process
of finalizing its filing statement for its proposed change of
business from mineral exploration to investment issuer (the
"Proposed COB") under the rules of the TSX Venture Exchange
(the "TSXV"). The shareholders of the Company approved the
Proposed COB at the Company's annual general and special meeting on
August 7, 2019 (the
"Meeting").
The Company intends to submit its formal application for
approval of the Proposed COB to the TSXV in the next few weeks.
Trading in the common shares of the Company has been halted and
will remain halted pending review of the Proposed COB by the TSXV.
Barring any unforeseen issues in the TSXV review of its Proposed
COB, The Company anticipates that its common shares will begin
trading again in January of 2020.
The Company is also pleased to announce its investment in
Algernon Pharmaceuticals Inc. ("Algernon") which was made in
accordance with the Company's investment policy announced on
August 12, 2019.
Algernon's business strategy is to fast track a number of its
lead compounds into phase II clinical trials as quickly and as
inexpensively as possible by leveraging the currently existing
regulatory approval in the country of origin where the drugs were
originally approved. Conducting off label phase II trials in the
drugs' currently approved market would save the company from
conducting all of the preclinical toxicology work. This additional
work would in comparison, add significant time and costs to the
Company's development timeline and budget. The next step post
positive phase II results would be to begin the USFDA approval
process.
The Company's investment in Algernon together with its
investments Quality Green Inc., Sweet Earth Holdings Corporation,
Hempfusion, Inc. and First Responder Technologies Inc. are in line
with the Company's business focus on early stage investments in
growth sectors and near term liquidity for the Company. Both
Quality Green and Sweet Earth are arm's length to the Company.
As at November 30, 2019, the
Company has approximately $22.5
million in working capital (defined as current assets less
current liabilities). As at November 30,
2019, the Company's current assets include cash of
approximately $16.6 million, equity
investments of approximately $5.4
million and other current assets of approximately
$4.0 million. As at November 30, 2019, the Company's current
liabilities total approximately $3.5
million.
Litigation
The Company also announces that a claim
has been made in the Alberta Court
of Queen's Bench against the Company by Jorge Lau Yook ("Lau") for payments
purportedly owing under a Rights Transfer Agreement made between
the Company, its Peruvian subsidiary and Lau. The claim is for US
$1.5 million in relation to property
payment.
The Company has filed both a statement of defense and a
counter-claim. In its statement of defense, the Company denies any
indebtedness to Lau. In its counter-claim, the Company seeks
damages against Lau for money, assets and resources wrongfully
taken, used or misappropriated and damages for loss of corporate
opportunities.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
Forward-looking information
This press release contains "forward-looking information" within
the meaning of applicable Canadian securities legislation.
Generally, forward-looking information can be identified by the use
of forward-looking terminology such as "plans", "expects" or "does
not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might"
or "will be taken", "occur" or "be achieved". Forward-looking
information is subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of GrowMax, as the case may
be, to be materially different from those expressed or implied by
such forward-looking information. Although GrowMax has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
information, there may be other factors that cause results not to
be as anticipated, estimated or intended. There can be no assurance
that such information will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking information. GrowMax does not undertake
to update any forward-looking information, except in accordance
with applicable securities laws.
Completion of the Proposed COB is subject to a number of
conditions, including but not limited to, Exchange acceptance and
if applicable, disinterested shareholder approval. Where
applicable, the Proposed COB cannot close until the required
shareholder approval is obtained.
There can be no assurance that the Proposed COB will be
completed as proposed or at all.
Investors are cautioned that, except as disclosed in the
management information circular or filing statement to be prepared
in connection with the transaction, any information released or
received with respect to the transaction may not be accurate or
complete and should not be relied upon. Trading in the securities
of the Company should be considered highly speculative.
The TSX Venture Exchange Inc. has in no way passed upon the
merits of the proposed transaction and has neither approved nor
disapproved the contents of this news release.
SOURCE GrowMax Resources Corp.
