THC to license NAC's successful medical clinic
model for replication in the Australian and New Zealand markets
OTTAWA, Dec. 6, 2017 /CNW/ - National Access Cannabis
Corp. ("NAC" or the "Company") (TSX VENTURE: NAC), Canada's best practices leader in delivering
secure, safe, and responsible access to legal medical cannabis,
today announced that it has signed a binding license agreement
("the agreement") with The Hydroponics Company Limited. ("THC")
(ASX: THC), whereby THC will license NAC's medical clinic operation
model for an initial period of 10 years in Australia and New
Zealand. The agreement also permits THC to extend the
licensing agreement for an additional period of 10 years, with
first right of refusal for potential development elsewhere in
Asia.
Under the agreement, NAC has agreed to provide to THC exclusive
access to certain intellectual property and marketing expertise of
NAC in connection with the development of a professional cannabis
clinic model in Australia and
New Zealand. NAC will also provide
THC with access to NAC's extensive relationships with Canadian
Licenced Producers and new medicinal products. In consideration,
THC has agreed to pay NAC a licensing fee of $500,000 Australian dollars upon or before the
second anniversary of the agreement or upon successfully achieving
an initial gross revenue milestone of $1,000,000 Australian dollars whichever occurs
first. Thereafter, THC will pay NAC ongoing quarterly royalties
equivalent to 7.5% of its gross revenue until such time as the
licensing agreement expires.
"This agreement is an important first step in NAC's
international expansion and the Australian medicinal cannabis
market represents a prime region for development," said
Mark Goliger, CEO of National Access
Cannabis. "We look forward to sharing NAC's extensive experience
and knowledge in successfully operating in Canada's growing cannabis market and leverage
our clinical model to provide safe and secure access to medicinal
cannabis products for patients in Australia and New
Zealand, and to further developing the partnership between
our two innovative and creative companies."
"We are delighted to partner with such a professional company as
NAC," said David Radford, CEO of The
Hydroponics Company. "Having visited their medical clinic in
Ottawa, I believe that the quality
processes and care that they have developed for their patients has
a real and exciting place in the Australian marketplace."
About National Access Cannabis
National Access Cannabis is Canada's best practices leader in delivering
secure, safe, and responsible access to legal medical cannabis. NAC
enables patients to gain knowledge and the legal medical
documentation required to navigate Canada's disparate network of authorized
Licensed Producers of Cannabis. Through its Canada-wide network of care centres, NAC has
partnered with health professionals to improve the quality of life
of its local members and provide services designed to inform,
educate and supply expert advice.
nationalaccesscannabis.com
National Access Cannabis Corp. is listed on the TSX Venture
Exchange under the symbol (TSXV: NAC).
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Reader Advisories
This press release contains forward-looking statements. More
particularly, this press release contains forward-looking
statements concerning the NAC's international expansion plans, the
sharing of experience and knowledge with international partners,
and the future relationships between the parties. The
forward-looking statements contained in this document are based on
certain key expectations and assumptions made by NAC. Although NAC
believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance
should not be placed on the forward-looking statements because NAC
cannot give any assurance that they will prove to be correct. Since
forward-looking statements address future events and conditions, by
their very nature they involve inherent risks and uncertainties.
Actual results could differ materially from those currently
anticipated due to a number of factors and risks. These include,
but are not limited to, risks associated with the medical and
potential marijuana industry in general.
SOURCE National Access Cannabis Corp.