Relevium Takes Major Step in Latam to Acquire Lifeline Pharma in
Cali, Colombia
MONTREAL, Canada -- June 13, 2019 -- InvestorsHub NewsWire --
Relevium Technologies Inc. (TSX.V: “RLV”, OTCQB: “RLLVF” and Frankfurt:
“6BX”) (the “Company” or
“Relevium”), is pleased to announce that Biocannabix Health
Corporation (“Biocannabix”), a wholly-owned subsidiary of Relevium
has executed on June 12, 2019 a binding agreement to acquire the
shares of Lifeline Pharma SAS, a Cali based cultivation and
extraction business in the burgeoning agro pharma market in
Colombia.
KEY HIGHLIGHTS OF THE PARTNERSHIP WITH
LIFELINE
- Best in class partnership for international vertical
integration.
- Combination of Biocannabix focus on Pediatric Endo-Medicine
with a large-scale operation with 150 years of sustainable,
environmentally responsible and organic agricultural history
- Located in Rozo, Valle del Cauca, in the heart of the sugar
cane enclave seven minutes away from the international airport and
10 minutes away from Cali’s downtown core and a population of over
3M people
- Multi-stage project with (1) an initial 5 hectares that
includes the local offices, a laboratory, a fully enclosed
greenhouse for tissue culture and micropropagation and an initial
cultivation of over 200,000 square feet in open air green houses,
(2) an option to expand to an additional 20 hectares or 2.2 million
square feet of open air greenhouse cultivation and (3) the
possibility to expand to another additional 60 hectares or 6.5
million square feet of cultivation.
- Full registration of 668 genetic strains with the ICA, the
Instituto Colombiano Agropecuario.
- Three licenses in progress including (1) extraction and
manufacturing, (2) cultivation with THC and (3) non-psychoactive
cultivation, all with scientific research, domestic sales and
export modalities.
- Strategic low-cost infrastructure that allows for an estimated
stage two flower capacity of 170,000 Kg per year with an initial
estimated cost of production 0.53$ per gram.
- Development of an industrial scale extraction plant in the
Pacific Free Zone, a private industrial park located minutes away
from the cultivation project. The free zone offers the benefits of
the free regime and seeks to promote and develop the process of
industrialization of goods, the productive chain and the provision
of services, as well as strengthen the competitiveness of its users
and customers by taking advantage of the generated opportunities
from international trade and bilateral agreements signed by
Colombia.
- Genetics laboratory and agronomic research in the BioParque del
Pacifico located in the campus of the International Center
for Tropical Agriculture (CIAT) and the Colombian Corporation
for agricultural research (Agrosavia).
STRATEGIC FIT FOR GLOBAL SUPPLY AND VERTICAL
INTEGRATION
Relevium’s Bio-Pharma arm, Biocannabix, is
focused in developing, marketing and selling endo-medicinal
formulations on Nutraceuticals and Medical foods aimed primarily to
pediatrics. An essential component of the strategy of delivering
safe, 100% auditable medicine for pediatric patients is to ensure
total control over the genetics, the cultivation and the processing
of extracts. The partnership with Lifeline ensures a 100%
organically grown product with access to over 600 registered
genetic strains, the buildout of an EU GMP extraction facility in
the Pacific Free Zone and the ability to trace and fully audit the
process from seed to medicine through blockchain technology.
The strict regulation of the Colombian legal
regime for cannabis only allow for the export of extracts and
finished goods and we aim to service international demand for
organically sourced medical cannabis extracts for LATAM, Europe and
eventually the Asian continent.
LOCAL MARKET THAT IS READY TO ADOPT ENDO-MEDICINAL
FORMULATIONS
Traditional remedies and natural medicine are an
integral part of Colombian culture and with a fast-growing middle
class and entrepreneurial nature, this market with a population of
over 49 million is moving quickly to adopt cannabinoid therapy.
Lifeline, through Biocannabix pediatric formulations, is poised to
successfully obtain a significant market share of the local
market.
TRANSACTION DETAILS
Under the terms of the binding agreement,
Biocannabix will acquire 100% of the shares on Lifeline Pharma SAS
by investing an initial US$850,000 to be deployed during stage one
of the projects. The initial investment is comprised of US$125,000
at signing, US$125,000 upon the grant of the initial licenses and a
commitment to deploy funds totalling US$600,000 over the next seven
months. As part of the transaction, Biocannabix Health Corporation
will issue US$3,650,000 in shares representing approximately 41% of
the shares outstanding of the wholly owned subsidiary.
In the event of a major transaction including a
sale or a public offering, the shareholders of Lifeline Pharma will
also receive an additional US$1.5 million to be settled in shares
of Biocannabix or in cash.
Aurelio Useche, CEO of Relevium stated: “The
acquisition and partnership with Lifeline Pharma SAS in Colombia
represents the single most important development to date for
Relevium, our team and our shareholders. This is the culmination of
months of strategic re-alignment, negotiations and a lot of hard
work by our team and the key stakeholders of Lifeline”. Mr. Useche
added:” We are very pleased and proud to partner with the amazing
team of Lifeline, including Oscar LIbreros CEO and Hossein
Shadanlou COO and look forward to work together to execute on the
common mission of providing safe, organically sourced and fully
auditable endo-medicinal products for pediatric applications”
Oscar LIbreros, CEO of Lifeline Pharma SAS
stated: “With over 150 years of tradition in organic farming and
our objective to provide the best medical cannabis extracts and
products, we are happy (THRILLED) to join forces and merge
with Biocannabix Health Corporation in Canada. We look forward to
delivering real value through the disciplined deployment of our
operational strategy from Colombia to the world”
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
About Relevium Technologies
Relevium is a publicly-traded company that
operates in the health and wellness industry, including legal
cannabis, with a primary focus on online distribution. The
principal business of the Company is the identification,
evaluation, acquisition and operations of brands and businesses in
the health and wellness markets and medical cannabis. The Company
pursues its business strategy through an acquisition and
partnership model in a holistic approach to encompass a wide range
of health and wellness consumer products. Relevium operates through
two wholly owned subsidiaries:
BGX E-Health LLC (BGX), based in Orlando,
Florida, markets dietary supplements, nutraceuticals, sports
nutrition and cosmeceuticals primarily through its Bioganix® brand
portfolio in the US and Europe. Relevium’s premium brands are sold
at some of the world’s largest retailers including such as
Walmart.com and Amazon.com.
Biocannabix Health Corporation (BCX), based in
Montreal, Quebec, is a biopharma nutraceutical company focused on
delivering pediatric endo-medicinal nutraceuticals for cannabinoid
therapy.
About Lifeline Pharma
Lifeline Pharma
SAS is a privately owned vertically integrated
agro-pharma business dedicated to scientific research, grow,
extraction, production and export of medicinal grade cannabis
derivatives. Incorporated in Cali, Colombia, Lifeline leverages 150
years of organic agriculture located in Rozo, Valle del Cauca, in
the heart of the sugar cane enclave, only 7 minutes away from the
international airport and 10 minutes away from Cali, the third
largest city in the country.
Cautionary Note Regarding Forward-Looking
Statements
This release includes certain statements and
information that may constitute forward-looking information within
the meaning of applicable Canadian securities laws. All statements
in this news release, other than statements of historical facts,
including statements regarding future estimates, plans, objectives,
assumptions or expectations of future performance, including the
timing and completion of the proposed acquisitions, are
forward-looking statements and contain forward-looking information.
Generally, forward- looking statements and information can be
identified by the use of forward-looking terminology such as
“intends” or “anticipates”, or variations of such words and phrases
or statements that certain actions, events or results “may”,
“could”, “should”, “would” or “occur”. Forward-looking statements
are based on certain material assumptions and analysis made by the
Company and the opinions and estimates of management as of the date
of this press release, including the assumptions that the Company
will be able to apply for and ultimately obtain an ACMPR licence,
the proposed business of Biocannabix will develop as anticipated,
that the Company will raise sufficient funds to develop the
Biocannabix business, and that the Company will obtain all
requisite regulatory approvals. These forward-looking statements
are subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity,
performance or achievements of the Company to be materially
different from those expressed or implied by such forward-looking
statements or forward-looking information. Important factors that
may cause actual results to vary, include, without limitation, the
risk that the proposed business developments may not occur as
planned; the timing and receipt of requisite approvals and failure
to raise sufficient funds.
Although management of the Company has attempted
to identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements or 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 statements 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
statements and forward-looking information. Readers are cautioned
that reliance on such information may not be appropriate for other
purposes. The Company does not undertake to update any
forward-looking statement, forward-looking information or financial
outlook that are incorporated by reference herein, except in
accordance with applicable securities laws. We seek safe
harbor.
On Behalf of the Board of Directors
RELEVIUM
TECHNOLOGIES INC.
Aurelio Useche
President and CEO
For more information about this press release:
Tel: +1.888.528.8687
RELEVIUM TECHNOLOGIES
INC
Email: investors@releviumcorp.com
Website: www.releviumtechnologies.com
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