CORRECTION FROM SOURCE: Ancient Strains Announces Definitive Agreement for 80% Interest in a Federal Licensed Cannabis Operator in Uruguay
Toronto, Ontario--(Newsfile Corp. - June 19, 2018) - This document corrects and replaces the press release that was issued by Ancient Strains Limited ("Ancient Strains") today June 19, 2018 at 5:26PM EST. The error occurred in the first paragraph where it should read "2,000 kg per year" instead of "2,000 tonnes per year".
Ancient Strains Limited ("Ancient Strains"), through its wholly-owned subsidiary Ancient Strains International Ltd. ("ASIL"), is pleased to announce that it has signed a Definitive Agreement ("DA") with Cannabis Uruguay Limitada ("CUL") outlining the terms of an agreement to finance the expansion of a CBD - rich hemp operation in exchange for an 80% equity interest in CUL. Under the terms of the agreement, ASIL will invest USD $6.9 million, and make cash and share payments subject to completion of certain milestones, including first commercial sales of cannabinoid extract. Upon reaching commercial production, expected in mid 2019, CUL is estimated to produce approximately 2,000 kg per year of cannabinoid extracts for export. The transaction is subject to Ancient Strains financing the build - out and expansion, and CUL receiving necessary regulatory and permit approvals.
"We are very excited to work with the CUL team in Uruguay. Ancient Strains will provide the financing and Canadian experience and bring international markets for product sales. Uruguay is a stable and progressive country with excellent growing conditions, experienced growers, and favourable export tax treatment. This marks the first step toward our growth as a leader in the international trade in cannabis extracts for medicinal purposes in three key areas: South America, North America/Europe, and south Asia. These regions combine excellent growth opportunities, and substantial future markets." stated President Samir Biswas.
SUMMARY of NEAR TERM COMMITMENTS in URUGUAY
- On signing, CUL receives immediate USD$250,000 cash and $150,000 working capital;
- Ancient Strains commits an additional USD$500,000 to commence expansions;
- CUL completes first harvest on 450 sq m (5,000 sq ft), and initiates oil extraction testing;
- CUL commences greenhouse construction on 2 hectare (215,000 sq ft) property;
- CUL acquires 30 hectares (3.2 million sq ft) for staged future expansion;
- Ongoing expansion in Uruguay through 2018 and 2019 upon receipt of approvals
KEY ANTICIPATED CORPORATE MILESTONES
- Ancient Strains expects to conclude one or more agreements in India by August 31;
- Ongoing development of markets for CBD and other extracts in Canada and abroad;
- Completion of a go - public transaction anticipated in Q4 of 2018;
- Completion of a license permit in one other world class grow location anticipated in 2019.
This Press Release Is Available on the Company's website www.AncientStrains.ca
About Ancient Strains
Ancient Strains Limited Is a Canadian federally registered company planning to become a vertically integrated international producer of cannabis extracts required for medicinal purposes.
The Ancient Strains' goal is to develop low cost production and extraction near key markets, and in collaboration with industry leaders that are experts in their fields, develop innovative strains of cannabis genetics that will have a positive impact on people's health worldwide.
This press release may contain certain forward-looking statements, including, without limitation, statements containing the words "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect", "in the process" and other similar expressions which constitute "forward-looking information" within the meaning of applicable securities laws. Forward-looking statements reflect the Company's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties and other risks which may be detailed from time-to-time in the Company's on-going filings with the securities regulatory authorities, when applicable, which filings would be found at www.sedar.com upon such time the company becomes a reporting issuer. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws.
This document has not been filed with any Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) or other authority that has verified the adequacy or accuracy of this release.
For further information contact
Daryl Hodges, Chairman and CEO Tel (647) 271-3817
Samir Biswas, President and COO Tel: (416) 545-7214