Ancient Strains Announces Two Strategic Cannabis Service Agreements
Toronto, Ontario--(Newsfile Corp. - August 16, 2018) - Ancient Strains Limited ("Ancient Strains" or "ASL") is pleased to announce that it has signed two binding agreements with strategic cannabis service providers that will greatly enhance Ancient Strains' ability to expand its international footprint and develop unique medicinal cannabis products. One is with CannOps Consulting Services Ltd. ("CannOps") and one is indirectly through Battalion Consol Corp. ("BATC").
Under the terms of the agreement with CannOps (the "CannOps Agreement"), CannOps will, among other things, supply product from its genetic library, work with Ancient Strains to develop medicinal cannabis extract product lines and assist in marketing and distribution. Ancient Strains will use the genetics and strains to enhance its position in the international business of medicinal cannabis.
Pursuant to the confidential terms of the agreement with Battalion Consol Corporation (the "BATC Agreement"), Ancient Strains will purchase BATC's minority equity interest in a licensed analytics lab located in Canada (the "LD"). The BATC Agreement will allow Ancient Strains full access to the services of the LD including import and export of product and product testing.
Both agreements are subject to final due diligence and definitive documentation, and all business dealings will be subject to regulatory approvals.
Summary of Terms
CannOps will provide seeds for cultivation and strain development;
CannOps will assist in offshore license acquisition, and protocols for extracts;
CannOps will assist in marketing and product development;
CannOps will receive warrants to purchase 2.5 million ASL shares exercisable at $0.40 for five years.
Battalion Consol Agreement:
BATC will sell its minority equity position and underlying agreement in a licensed laboratory;
ASL will have access to the full services of the LD including testing and services;
ASL will have exclusivity for product testing from India and Uruguay;
ASL will issue 1 million warrants exercisable at $0.40 per warrant for five years and pay $500,000 to BATC within three years to acquire the minority interest in the LD.
Samir Biswas, President of Ancient Strains, commented: "We are very pleased to have signed these agreements. The CannOps Agreement allows Ancient Strains to source high quality Canadian medicinal cannabis strains and expertise to develop our international business units, while the BATC Agreement would allow us to import and export, test and combine Canadian and Ancient Strains acquired offshore. Working closely with the experienced team at CannOps and the LD, Ancient Strains is now poised to expand its international footprint and develop unique medicinal cannabis products for what we believe is rapidly becoming a global business."
Ancient Strains Near Term Plans:
Near-term Objectives of Ancient Strains in 2018 are:
Close on the current $3 million financing;
Continue expanding operations in Uruguay;
Conclude one or more international grow, extract, and sales agreements;
Attract additional Canadian expertise to complement the international strategy;
Complete a 'go-public' transaction and list the shares on a Canadian stock exchange.
This Press Release Is Available on The Company's website www.AncientStrains.ca
About Ancient Strains
Ancient Strains Limited is a private Canadian federally-registered company planning to become a vertically integrated international producer of cannabis and hemp and related products, where legally allowed, as required for medical use by patients.
Ancient Strains goal is to develop an international business, using low-cost cultivation and extractions using innovative strains of cannabis genetics and Canadian expertise that will have a positive impact on people's health worldwide.
About CannOps Consulting Services Ltd.
CannOps is an Ontario provincially-registered company founded by experts in the medicinal cannabis industry providing extensive services to the industry ranging from design and construction advice to genetics, efficacy, and standard operating procedures (SOP's) for dosing and patient management. The dedicated staff are well—respected and have a long history of assisting both patients and companies establish appropriate medicinal protocols.
About Battalion Consol Corp.
BATC is a Canadian, federally-registered company providing merchant banking services to startup companies with a focus on the cannabis space.
This press release contains certain forward-looking statements, including, without limitation, statements containing the words "may", "plan", "will", "would", "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 detailed from time-to-time in the Company's on-going filings with the securities regulatory authorities, which filings can be found at www.sedar.com. 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.
For further information contact
Daryl Hodges, Chairman and CEO Tel (647) 271-3817
Samir Biswas, President and COO Tel: (416) 545-7214