VANCOUVER, British Columbia, Nov. 21, 2016 /Weed Wire/ — Veritas Pharma Inc. (CSE: VRT) (OTC Pink: VRTHF) (FSE: 2VP), (“Veritas” or the “Company”), an emerging-stage pharmaceutical and IP development company, is pleased to announce that it has signed a Letter of Intent (“LOI”) with Sechelt Organic Marijuana Inc. (“Privco”), whereby Veritas has been granted the exclusive option to acquire 100% ownership of PrivCo (the “Transaction”), subject to certain terms and conditions including; obtaining an ACMPR/MMPR license and the issuance of a permit by Health Canada for the building of a cannabis growing facility. Further, and as part of the agreement, Veritas will manage and help facilitate the application process with Health Canada, and will pay all out-of-pocket expenses during the approval process.
The target acquisition (“PrivCo”), currently owns a secure commercial facility and land located in Sechelt, British Columbia, Canada and, since July 4th, 2014, has had an application pending with Health Canada for a new MMPR (Marihuana for Medical Purposes Regulations) license. PrivCo personnel includes an experienced grow master who is currently a ‘designated grower’ under current MMAR licensing guidelines.
Dr. Lui Franciosi (CEO, Veritas Pharma) comments, “This is a win-win scenario for Veritas and its shareholders. We believe this transaction is both tactical and value driven. Further and most importantly, it is representative of the steps we will take to secure and maximize our position along the medical marijuana supply chain.
We are making great strides advancing R&D through our investment in Cannevert Therapeutics Ltd. (“CTL”), targeting pain, nausea and PTSD solutions. This strategic acquisition will bring together our valuable IP surrounding our disease specific medical marijuana strains.” Dr. Franciosi continues…”With this acquisition, Veritas will control and have ownership of the entire process from developing our patented strains through Cannevert, to cultivation, thereby ensuring our medical marijuana product is ready for market, that is backed by scientific data.”
Under the terms of the LOI, Veritas Pharma has the option of acquiring 100% of the issued and outstanding shares of PrivCo. Once Health Canada grants to PrivCo the permit to build a cannabis-growing facility and to issue to PrivCo the requisite MMPR license, Veritas will proceed to close the option to acquire PrivCo within 60 days of the approval, to Close the acquisition by making a cash payment of $400,000 for the land and facilities, as well as a common stock payment equivalent to $400,000 for the MMPR license.
The assignment is subject to Exchange approval.
On November 16th, 2016, Veritas announced an increase to its planned private placement. The private placement will be for total of 4,750,000 units (“Units”) at a price of $0.30 per Unit for aggregate gross proceeds of up to $1,425,000 (the “offering”). Each Unit will be comprised of one common share (“Share”) and one-half Share purchase warrant of the company (a “Warrant Share”) at an exercise price of $0.50 per Warrant Share for a period of 18 months from the date of issuance. All additional terms and conditions of the Offering will remain the same as the announcement on September 16th, 2016. In addition, to this private placement Veritas board has decided to grant stock options to consultants to purchase 500,000 shares of VRT at exercisable price of $0.45.
About Veritas Pharma Inc.
Veritas Pharma Inc. is an emerging-stage pharmaceutical and IP development company, who, through CTL, is advancing the science behind medical cannabis. It is the Company aim, through its investment in CTL, to develop the most effective cannabis strains (cultivars) specific to pain, nausea, epilepsy and PTSD, solving the critical need for clinical data to support medical marijuana claims. CTL’s unique value proposition uses a low-cost research and development model to help drive shareholder value, and speed-to-market. Veritas investment in CTL is led by strong management team, bringing together veteran academic pharmacologists, anesthetists & chemists. The company’s commercial mission is to patent protect CTL’s IP (cultivars & strains) and sell or license to cancer clinics, insurance industry and pharma, targeting multi-billion dollar global markets.
About Cannevert Therapeutics Ltd.
CTL is a private company owned by a unique group of chemists, pharmacologists, and other medical professionals. With offices located on the campus of the University of British Columbia, CTL has obtained permission from Health Canada to conduct research on cannabis strains. CTL has entered a funding agreement with Veritas where, upon advancing $1.5 million to CTL, Veritas will earn an 80% ownership interest in CTL. Although Veritas has advanced $750,000 to CTL, no ownership interest will be earned by Veritas until the entire $1.5 million is received. CTL has also entered a licensing agreement with Veritas, licensing Veritas to market all products developed by CTL.
Veritas Pharma Inc. is a publicly traded company which trades in three countries including Canada, on the Canadian Stock Exchange under the ticker VRT; in the United States, on the OTC under the ticker VRTHF; and in Germany, on the Frankfurt exchange under the ticker 2VP.
For more information, please visit our website: veritaspharmainc.com
On behalf of the Board of Directors
Veritas Pharma Inc.
“Dr. Lui Franciosi”
Dr. Lui Franciosi
Chief Executive Officer
Investor and Public Relations Contact
The CSE has not reviewed, nor approved or disapproved the content of this press release.