- 3 Carbon is in the business of designing cannabis extraction facilities and utilizing its own proprietary extraction methods.
VANCOUVER, British Columbia, April 16, 2018 (GLOBE NEWSWIRE) — Veritas Pharma Inc. (CSE:VRT) (OTC:VRTHF) (Frankfurt:2VP) (“Veritas” or the “Company”) is pleased to announce that it has entered into a Share Purchase Agreement (“Purchase Agreement”) with 3 Carbon Extractions Inc. (“3 Carbon”) to acquire Fifty Percent (50%) of the issued and outstanding shares of 3 Carbon.
The remaining Fifty Percent (50%) equity interest can be acquired by Veritas based upon a value to be decided by a qualified independent business valuator. The valuator will be jointly engaged by Veritas and 3 Carbon to prepare a valuation report to determine, as at the third anniversary of the date of the initial share exchange, the total value of 3 Carbon. The purchase price for which shall be paid in cash or in fully paid and non-assessable common shares of Veritas, or in a combination thereof, as may be determined by the Company in its discretion.
As consideration for the 3 Carbon Shares, the shareholders of 3 Carbon (the “3 Carbon Shareholders”) are entitled to receive aggregate consideration of $300,000 US and 1,500,000 common shares in the capital of the Company (“Common Shares”). The cash consideration will be used to build a scalable extraction facility at a location to be determined by the board of Veritas. 3 Carbon shall grant Veritas the exclusive license to use and commercially exploit the intellectual property arising from any research conducted by 3 Carbon utilizing Veritas’s funds from the initial $300,000 US investment and associated share issuance.
About 3 Carbon Extractions Inc.
3 Carbon is a British Columbia private corporation which is in the business of designing cannabis extraction facilities and utilizing its own proprietary extraction methods and equipment supplier relationships to deliver best in class cannabis extracts to the existing medicinal marijuana sector which it intends parlay into the recreational market, when cannabis extracts are expected to become legal in Canada in 2019.
About Philip Kwong
Philip Kwong, is the founder of 3 Carbon and is a certified cannabis extraction specialist who, over the last two years, has developed the proprietary formulas, recipes, safe practices and procedures for processing extracts and other products from the cannabis plant, specifically through light hydrocarbon extraction processes. Philip collaborates with Extraction Tek Solutions Inc. (“ETS”), the Colorado based equipment manufacturer, and a marketing representative for ETS equipment for the Canadian cannabis market.
Philip has a passion for cannabis based research and the development of remedies for neurological and immune system diseases and disorders, such as multiple sclerosis and epilepsy and has been successful in producing product which has brought relief to his own Remitting-Relapsing Multiple Sclerosis. He has been appointed to the advisory board of Veritas.
The Acquisition remains subject to certain conditions precedent, including receipt of applicable regulatory approvals and the approval of the Canadian Securities Exchange (“CSE”).
Veritas’ CEO, Dr. Lui Franciosi, stated: “The addition of 3 Carbon adds tremendous value to Veritas with its proprietary technology. I look forward working with Philip with his knowledge of cannabis extraction and teaming with Veritas’s scientific brain trust in developing new remedies and IP for neurological and immune system diseases.“
About Veritas Pharma Inc.
Veritas Pharma Inc. is an emerging pharmaceutical and IP development company, who, through its 100% owned subsidiary Cannevert Therapeutics Ltd. (“CTL”), is advancing the science behind medical cannabis. It is the Company’s aim, through its investment in CTL, to develop the most effective cannabis strains (cultivars) specific to pain, nausea, epilepsy and PTSD, solving the critical need for clinical data to support medical marijuana claims. CTL’s unique value proposition uses a low-cost research and development model to help drive shareholder value, and speed-to-market. Veritas investment in CTL is led by strong management team, bringing together veteran academic pharmacologists, anesthetists & chemists. The company’s commercial mission is to patent protect IP (cultivars & strains) and sell or license to cancer clinics, insurance industry and pharma, targeting multi-billion dollar global markets.
Veritas Pharma Inc. is a publicly traded company which trades in three countries including Canada, on the Canadian Stock Exchange under the ticker VRT; in the United States, on the OTC under the ticker VRTHF; and in Germany, on the Frankfurt exchange under the ticker 2VP.
The Company would also like to announce the cancellation of 1.8 million stock options, and the issuance of 2,000,000 stock options to directors, officers, and consultants priced at $0.55 for a term of twelve (12) months.
For more information, please visit our website: veritaspharmainc.com
On behalf of the Board of Directors
“Dr. Lui Franciosi”
Dr. Lui Franciosi
President and Chief Executive Officer
Further information about the Company is available on our website at www.veritaspharmainc.com or under our profile on SEDAR at www.sedar.com and on the CSE website at www.thecse.com.
Investor and Public Relations Contact
Veritas Pharma Inc.
The CSE has not reviewed, nor approved or disapproved the content of this press release.