Benchmark Botanics Provides Update on Investment Cooperation Agreement with Zhejiang Yatai Pharmaceutical
Vancouver, British Columbia--(Newsfile Corp. - July 25, 2019) - Benchmark Botanics, Inc. (CSE: BBT) (FSE: BBW) (OTC Pink: BHHKF) ("Benchmark", "BBT" or the "Company"), a federally-licensed producer and distributor of medical-grade cannabis, is pleased to provide an update to the news release issued by the Company on May 29, 2019, which announced that Benchmark and Zhejiang Yatai Pharmaceutical Co Ltd. (" Zhejiang Yatai" ) had signed a definitive agreement (the "Investment Cooperation Agreement") to establish a joint venture company in Canada to explore opportunities, subject to compliance with Canadian Cannabis Act and related Regulations, to cultivate, manufacture, process, and market high content cannabidiol ("CBD") cannabis products; along with the R&D of medical cannabis; and the extraction, isolation, and purification of high-CBD cannabis oil for commercial applications. Zhejiang Yatai is a publicly listed company on the Shenzhen Stock Exchange (stock code: 002370).
The Company is happy to report that Zhejiang Yatai has received approval and acceptance of filing from the Administrative Office of Keqiao District of Shaoxing City in China for Overseas Investment Projects to establish a joint venture company to build an industrial cannabis facility in Canada with Benchmark as planned under the Investment Cooperation Agreement.
Zhejiang Yatai has also received an Enterprise Overseas Investment Certificate issued by the Zhejiang Provincial Department of Commerce, allowing Zhejiang Yatai to invest and transfer funds from China in order to make their CAD$7 million investment into the new joint venture company with Benchmark.
"We are pleased to see Zhejiang Yatai diligently advanced the Investment Cooperation Agreement and welcome the approvals from the local government. We believe that this event advances the viability of the partnership and for the industrial cannabis industry" said William Ying, CEO of Benchmark Botanics. "We look forward to a prosperous and mutually beneficial partnership with Zhejiang Yatai, one of the top 500 Chinese corporations."
It is anticipated that the new joint venture company will have a share capital of CAD $14 million, of which Zhejiang Yatai will invest CAD $7 million in cash, accounting for 50% of the its share capital; BBT will cause its wholly-owned subsidiary Potanicals Green Growers Inc. to use its existing Health Canada issued license to apply for a license for property to be acquired by the new company for cannabis cultivation, processing, and sale thereon and in exchange BBT will receive 25% of the new company's share capital (with a cash equivalent of CAD$3.5 million) ; and Rippington Investment will invest CAD $3.5 million in cash, accounting for the remaining 25% of the new company's share capital.
The new joint venture company will pursue business opportunities in the development of industrial cannabis products with the focus on the medical sector and quickly implement a strategic plan to seek out new profitable pharmaceutical health and wellness supplements for the company's future growth and competitiveness.
Zhejiang Yatai will bring their significant resources and experience to the new partnership with Benchmark as follows:
- Benchmark and Zhejiang Yatai will jointly focus on developing a European and American industrial cannabis CBD market. Both will make full use of their respective significant corporate resources, established sales channels, distribution networks, existing infrastructures and the expertise of the company's drug research and development technologies.
- Benchmark and Zhejiang Yatai will leverage their existing resources and their respective experience in the field of drug development, promote the cultivation of high CBD content of industrial hemp cultivation, processing, marketing, research and development of medical cannabis and high purity CBD-based cannabinoids extraction, separation, purification and development.
- Benchmark and Zhejiang Yatai will be responsible for the foreign exchanges and all other related import and export logistics in accordance with domestic and international laws.
About Zhejiang Yatai Pharmaceutical Co., Ltd.
Zhejiang Yatai Pharmaceutical Co., Ltd. (http://en.yatai.com/), one of the top 500 China Enterprises and a publicly listed company on the Shenzhen Stock Exchange (stock code: 002370) is a China-based company engaged in the manufacture and distribution of drugs. The Company's main business consists of the research, development, production and sales of chemical agents, chemical raw materials and diagnostic reagents, as well as the provision of pharmaceutical research and development outsourcing (CRO) services. The Company's chemical agents are classified as antibiotics and non-antibiotic drugs. Along with its subsidiaries, the Company provides preclinical research services, clinical research services and other advisory services. The Company distributes its products primarily in domestic markets and overseas markets.
About Benchmark Botanics Inc.
Benchmark Botanics is a diversified multi-licensed cannabis producer focused on a three-way vertical business model targeting the medical, pharmaceutical, and recreational markets in Canada and the EU. The Company's business plan also includes a strategy to become a Canadian licensed producer to pioneer selling medical cannabis and hemp in China and throughout Asia.
Benchmark Botanics is focused on producing the highest-quality, indoor-grown cannabis for patients and adult recreational consumers, as well as developing international business partnerships to extend the Company's global footprint.
Benchmark Botanics' 100% owned subsidiary, Potanicals Green Growers Inc. is a Health Canada licensed producer under the Cannabis Act and its regulations (formerly ACMPR). The Company is producing at its indoor Peachland Cannabis Complex and is in the design stage for a Phase II expansion of an additional 50,000 square foot facility there. Along with cultivation and production, the company's Peachland BC facility also provides propagation, cultivation, cloning, storage, research and development, genetics and is progressing towards CBD oil extraction and an EU-GMP certification.
As part of its expansion strategy the company is building its second facility, a 4-acre Pitt Meadows Greenhouse Operations in BC.
The Company has established several European Union partnerships including the rights to "The Bulldog" trademark in Canada. The Bulldog trademark has a long-established successful history as one of the most well-known cannabis cafe brands in Amsterdam and around the world.
ON BEHALF OF THE BOARD OF
BENCHMARK BOTANICS INC.
/s/ "William Ying"
Chief Executive Officer
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this release.
FORWARD LOOKING INFORMATION
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. More particularly and without limitation, the news release contains forward-looking statements and information relating to Company's corporate strategy. The forward-looking statements and information are based on certain key expectations and assumptions made by management of the Company, including, without limitation, the Company's ability to carry out its business plan. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information since no assurance can be given that they will prove to be correct.
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