TORONTO, ON / ACCESSWIRE / July 8, 2015 / The Canadian Bioceutical Corporation (TSX VENTURE: BCC) ("BCC " or the "Company") is pleased to announce that it has set in motion a plan to establish a presence in the burgeoning U.S. medical marijuana industry under the auspices of BCC's recently-launched Canna Assist Partnership Program (CAPP).
"Our company has accumulated significant expertise in the cultivation and production of medical marijuana and marijuana derivative products. We have available a large grow operations team with decades of cumulative experience, a long-history of producing plant-based extracts and concentrates, relationships with research and product development experts in both Canada and Israel and a newly-announced collaboration with Roto-Gro International," says Scott Boyes, BCC's CEO. "We are also in negotiation with other large participants in the U.S. industry and expect to announce further product and marketing relationships in the very near future."
"While our Company had expected to deploy these resources for the benefit our planned facility in Owen Sound, and that is still very much our intent, BCC cannot have these valuable assets sitting idle while we await the inordinately-lengthy licensing approval by Health Canada," states Boyes. "We have set in motion a plan to raise a tranche of funds specifically for CAPP delpoyment and to partner with both new and existing U.S medical marijuana enterprises (MME's). The plan includes our selecting MME's in those states where medical marijuana has been legalized and we will invest and provide services and expertise to assist these MME's to ramp up and/or expand cultivation, production and product diversity. In each case, it is anticipated that funds invested will be at least 90% secured by real estate and/or equipment. We plan to take an equity position in each MME which will likely range from 9.9% to 51% depending on the amounts permitted by the respective state. Our initial targets are in Nevada, Arizona, Washington, Oregon and California. Current regulations prohibit outside investment in Colorado, but that may change in the coming months. Working with consultants based in Colorado, Kentucky and Nevada, we have already identified several MME candidates for the CAPP initiative and will be providing more details as each MME's transaction is finalized. All transactions will be processed through our wholly-owned Nevada subsidiary, CGX Life Sciences Inc."
"We remain fully-committed to the potential of the Canadian market and are continuing with our plans to launch a large cultivation and production facility in Owen Sound, Ontario, says Boyes. "We believe that Canada's MMPR program was generally well-conceived and should have been a global model for the regulation of cannabis cultivation and distribution. However, the regulatory processes in many states have enjoyed a much better implementation and the United States is quickly becoming the world leader in this new multi-billion dollar industry. BCC fully intends to participate in that growth opportunity."
Additional details in relation to BCC's plan to enter into the medical marijuana sector may be found in the company's two (2) News Releases of January 7, 2015 with the most recent update provided in BCC's News Release of May 11, 2015.
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), and Psorberine(TM) and FertaMax(TM). Additionally BCC, through its wholly-owned subsidiary BioCannabis Products Ltd. and, subsequent to receiving its MMPR license from Health Canada and the potential revision of the related regulations, intends to develop and market a series of new cannabis-based branded medicinal products to address this rapidly-evolving market.
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
The Canadian Bioceutical Corporation
scott@canadianbioceutical.com
(416) 840-4703
SOURCE: The Canadian Bioceutical Corporation
