TORONTO, ON / ACCESSWIRE / May 11, 2015 / The Canadian Bioceutical Corporation ("BCC") (TSX VENTURE: BCC.V) is pleased to announce, that the application of its wholly-owned subsidiary, BioCannabis Products Ltd. under Health Canada's Marijuana for Medical Purposes Regulations is progressing. On January 7, 2015 the Company announced that BioCannabis had filed a Marijuana for Medical Purposes Regulations ("MMPR") application with Health Canada. The application was received by Health Canada and was subsequently assigned a file number. BCC believes that the quality of the BioCannabis application and the time required to complete the application moved the company through the pre-screening process in a very timely manner.
BioCannabis' initial application provides for the company to inventory up to 15,000 kg and for the sale, delivery, destruction and production of dried marijuana. BCC is hopeful of being able to utilize its 20 years of experience in the nutraceutical business and its collaboration with one of Israel's preeminent cannabis research firms to expand its product offerings to also include a wide variety of cannabis-infused medicinals. An action is currently before the Supreme Court of Canada which, if successful, would require Health Canada to expand of the definition of marijuana to include oils, capsules and other cannabis-based products.
BioCannabis' leased premises for growing medicinal marijuana is an 180,000 sq. ft. building located within the City of Owen Sound, Ontario. The building, upon approval of a pre-license inspection from Health Canada will house in excess of 20 large growing rooms, a drying area, trimming room, packaging area, a very large, high-security vault, a laboratory, extraction and testing facility, a below-grade highly-secure shipping and receiving compound as well as administrative offices and staff support areas. The master security plan and threat assessment report as well as an exhaustive site security plan for the building and the perimeter was completed by ITC Security and submitted with the application. The company intends to commence the next phase of build-out of the facility later this month.
As of April 5, 2015, BioCannabis had received only two minor requests for more information including sample copies of the more critical SOP documents. These documents had been prepared for the company by its management working in co-operation with an outside consultant and with the assistance of Quality Control Laboratories Inc. BioCannabis has been officially informed by Health Canada that its application has progressed to the Enhanced Security Clearance phase. BioCannabis will continue to work with Health Canada to complete and fulfill any additional steps required as it moves through the security clearance phase of the application.
BCC continues to invest considerable management attention and funds in its planned expansion into medical marijuana production as well as towards the development of both cannabis-based and conventional nutraceutical products for both the Canadian and export markets.
Such costs include (but are not necessarily limited to):
- Costs associated with procuring the Health Canada License in the estimated amount of $200,000; and
- Costs in relation to the necessary employees and consultants in the estimated amount of $350,000 (for the 2015 calendar year).
There will be additional costs associated with the premises build-out, acquisition and installation of sophisticated security apparatus and the purchase of grow-op, laboratory and production equipment which are expected to be in the range of up to $12-14 million dollars.
BCC has completed, and will endeavor to conduct additional financing(s) in the coming months as required to implement its plans.
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), Relieva(TM), Psorberine(TM) and FertaMax(TM). The company, through its subsidiary, BioCannabis Products Ltd., and subsequent to receiving its MMPR license from Health Canada and the potential revision of these regulations, intends to develop and market a series of new cannabis-based branded medicinal products to address this rapidly-evolving market.
Additional details in relation to BCC's plan to enter into the medical marijuana sector may be found in the company's two News Releases of January 7, 2015.
CSA Investor Caution
Investors should be aware that companies cannot legally conduct a medical marijuana business 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 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
scott@canadianbioceutical.com
(416) 840-4703
SOURCE: The Canadian Bioceutical Corporation
