Emblem and Natura Naturals announce termination of letter of intent
14 September 2018 - 12:30PM
Emblem Corp. (TSXV: EMC, OTCQX: EMMBF) (“Emblem” or the “Company”)
through its wholly-owned subsidiary Emblem Cannabis Corporation, a
licensed producer of medical cannabis under the Access to
Cannabis for Medical Purposes Regulations (“ACMPR”), and
Natura Naturals Holdings Inc. (“Natura”) announced the termination
of their letter of intent as of 5 p.m. EST on September 13, 2018.
“Emblem looks forward to maintaining its strong business
relationship with the Natura team as both a shareholder and in
connection with our existing 3,000 kg supply agreement in the
coming years,” said Nick Dean, CEO of Emblem Corp.
In addition, as previously announced, Emblem recently provided
$2 million of advanced funding to Natura for the expansion of its
facility (the “Funding”). The Funding is comprised of a one-year
convertible debenture for an aggregate principal amount of up to $2
million, with an interest rate similar to Natura’s other funding
obligations and can be pre-paid at any time during the term. The
first tranche of $500,000 was advanced on August 23, 2018, with
subsequent payments made on August 30, September 6 and September
13, 2018. The Funding is convertible into Natura shares at $0.80
per share plus one full share purchase warrant exercisable at
$1.05. In the event Emblem elects to convert the Funding into
Natura shares, Natura and Emblem would concurrently enter into an
additional 2,000 kg supply agreement on substantially the same
terms as the supply agreement completed on July 17, 2018.
About Emblem Emblem, through its wholly-owned
subsidiary Emblem Cannabis Corporation, is a fully integrated
licensed producer and distributor of medical cannabis and cannabis
derivatives in Canada under the ACMPR. Emblem’s state-of-the-art
indoor cannabis facility and research and development laboratory is
located in Paris, Ontario. Led by an experienced management team of
healthcare executives, accomplished marketing professionals, and
cannabis experts, Emblem is focused on driving shareholder value
through product innovation, brand relevance, and access to patient
and consumer channels. Emblem is also the parent company of
GrowWise Health Limited, one of Canada’s leading cannabis education
services. Emblem trades under the ticker symbol EMC on the TSX
Venture Exchange. For more information visit
www.emblemcorp.com.
About Natura Based in Leamington, Ontario,
Natura Naturals is a licensed cultivator of medical cannabis
pursuant to the ACMPR. The company’s cultivation facility is
capable of producing plants in a 662,000+ square feet greenhouse
facility under optimal growing conditions. Natura grows
high-quality hydroponic cannabis which can be used for various
medical and recreational applications. Natura has an extensive
genetics library and continues to develop innovative products for
the Canadian and International marketplace.
For media inquiries, please
contact:
Morgan CatesH+K
Strategies416.413.4649Morgan.cates@hkstrategies.ca
For investor inquiries, please contact:
Ethan Karayannopoulos Investor Relations Emblem
Corp. 647.748.9696
ethank@emblemcorp.com
Alex Stojanovic Chief Financial Officer Emblem Corp.
416.923.1331
alexs@emblemcorp.com
Alexander Logie SVP Business Development Natura Naturals Inc.
647.216.8997 logie@naturanaturals.ca
Ian Atacan Chief Financial Officer Natura Naturals Inc.
416.562.3220 ian@naturanaturals.ca
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION This
news release contains certain forward-looking statements and
forward-looking information (collectively referred to herein as
"forward-looking statements") within the meaning of applicable
Canadian securities laws. All statements other than statements of
present or historical fact are forward-looking statements,
including statements with respect to the proposed acquisition of
Natura. Forward-looking statements are often, but not always,
identified by the use of words such as "anticipate", "achieve",
"could", "believe", "plan", "intend", "objective", "continuous",
"ongoing", "estimate", "outlook", "expect", "may", "will",
"project", "should" or similar words, including negatives thereof,
suggesting future outcomes. Management of the Company believes the
expectations reflected in such forward-looking statements are
reasonable as of the date hereof but no assurance can be given that
these expectations will prove to be correct and such
forward-looking statements should not be unduly relied upon.
Various material factors and assumptions are typically applied in
drawing conclusions or making the forecasts or projections set out
in forward-looking statements. Those material factors and
assumptions are based on information currently available to the
Company, including data from publicly available governmental
sources as well as from market research and industry analysis and
on assumptions based on data and knowledge of this industry which
the Company believes to be reasonable. However, although generally
indicative of relative market positions, market shares and
performance characteristics, such data is inherently imprecise.
While the Company is not aware of any misstatement regarding any
industry or government data presented herein, the cannabis industry
involves risks and uncertainties and is subject to change based on
various factors.
Forward-looking statements are not a guarantee of future
performance and are subject to and involve a number of known and
unknown risks and uncertainties, many of which are beyond the
control of the Company, which may cause actual performance and
results to differ materially from any projections of future
performance or results expressed or implied by such forward-looking
statements. These risks and uncertainties include, but are not
limited to, the risks identified in Emblem’s December 31, 2017
Management's Discussion and Analysis which has been filed with the
Canadian Securities Administrators and available on www.sedar.com.
Any forward-looking statements are made as of the date hereof and,
except as required by law, the Company assumes no obligation to
publicly update or revise such statements to reflect new
information, subsequent or otherwise.
Neither the Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the Exchange)
accepts responsibility for the adequacy or accuracy of this Press
release.
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