Heritage Signs Agreement to Acquire 30% of Los Angeles Based Endocanna Health Inc
Vancouver, B.C. / TheNewswire / May 15, 2019 - HERITAGE CANNABIS HOLDINGS CORP. (CSE: CANN) ("Heritage" or "Company") is pleased to announce that it has entered into a Letter of Intent to acquire 30% of Endocanna Health Inc. ("Endocanna") from Los Angeles, California for $3,000,000 USD in a combination of cash and shares.
Endocanna has developed the Endocannabinoid DNA ("EndoDNA") test which uses a home-based saliva collection kit to identify clinically relevant genetic variants related to cannabinoid receptors and metabolism for an individual. This information is provided with information on terpene variations and cannabinoid ratios which may work best for their specific genetic results. This process, supported by scientific research, was developed to help people to participate in their own health choices, and to assist individuals in making informed decisions on formulations and dosing of cannabinoids
We are excited to be combining our plans for our own Extraction and Medical Sciences divisions with the technology and expertise that Endocanna brings
says Dr. Chris Spooner, Chief Science Officer of Heritage
By utilizing the science-based EndoDNA process, we will be better able to assist patients with selecting and dosing by developing formulations that address the unique pharmacogenomics of individuals. This will provide an individualized, customizable approach that will help patients understand the link between cannabinoids and their health and assist them in product selection and dosing
Under the terms of the agreement, Heritage will invest $2,000,000 USD into Endocanna and receive 20% of the common shares in the company from treasury, and issue shares of Heritage equivalent to $1,000,000 USD directly to certain principles of Endocanna in exchange for an additional 10% of the common shares outstanding. As part of this agreement, Heritage will form a Joint Venture to represent the EndoDNA technology in Canada, working with scientists at Endocanna to create a line of formulations to be jointly branded. Heritage will maintain certain rights on future funding requirements and expansion into other countries. Additionally, Heritage will also be entitled to name a representative to the board of directors and the advisory board of Endocanna. This transaction is subject to the completion of customary due diligence and standard transaction documents. The targeted close date is on or before June 28, 2019.
We are looking forward to progressing with this transaction as Endocanna aligns favourably with us and our goals of being a leading provider of medical cannabis formulations
states Clint Sharples, CEO of Heritage
The worldwide expansion potential for the EndoDNA technology will open doors for Heritage to replicate its extraction services and product offerings for medical patients in multiple markets
About Endocanna Health Inc.
Endocanna is a company based in Los Angeles, CA that has developed Endocannabinoid DNA testing to assist individuals in taking control of their own health by utilizing cannabis products specifically suited for themselves. The recently expanded database of genetic markers now allows for a thorough review of potential products which are helpful to address the needs of patients. EndoDNA testing packages are currently available in the United States, and will shortly be introduced to Canada and other select cannabis-forward countries.
For more information visit www.endocannahealth.co
The Company is focused on becoming a vertically integrated cannabis provider that currently has two Health Canada approved licenced producers, through its subsidiaries Voyage Cannabis Corp. and CannaCure Corp. both regulated under the Cannabis Act Regulations. Working under these two licences, Heritage has two additional subsidiaries, Purefarma Solutions, which provides extraction services, and BriteLife Sciences which is focused on cannabis based medical solutions. Heritage as the parent company, is focused on providing the resources for its subsidiaries to advance their products or services to compete both domestically and internationally.
ON BEHALF OF THE BOARD OF DIRECTORS OF HERITAGE CANNABIS HOLDINGS CORP.
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This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors - including the availability of funds, the results of financing efforts, the results of exploration activities -- that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.