/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES/
VANCOUVER, Sept. 21, 2018 /CNW/ - BLOCKStrain TECHNOLOGY CORP. (the "Company" or "BLOCKStrain") (TSXV: DNAX.V) is pleased to announce it has entered into a Term Sheet that sets forth the terms and conditions of a technology partnership (the "Agreement") with Integral Genomics Inc. (dba Lighthouse Genomics Inc.) ("Integral"), which operates an advanced testing laboratory for DNA and Quality Assurance testing of cannabis products.
Integral's operating entity Lighthouse Genomics is led by Dr. Gina Conte, an award winning expert in evolutionary genetics, who has spearheaded ground breaking discoveries of genetic traits within plants, as well as Tim Harvey, a foremost expert in cannabis breeding and strain propagation with decades of experience in the Canadian cannabis market. Lighthouse provides cutting edge technology and scientific processes which will support BLOCKStrain's registry of genetic profiles of cannabis strains, and will support BLOCKStrain's initiative to provide quality assurance data to consumers and governmental regulators.
"BLOCKStrain has developed enterprise technology that allows us to collect, store and manage this critical data in an immutable, blockchain-protected database," explained BLOCKStrain Chief Executive Officer Robert Galarza. "However, since we rely on third party labs to provide us with that data it is imperative for us to support scientific advancements in genetic testing and analysis. The Agreement we have reached with Lighthouse Genomics allows us to support advancements in science and technology, which can then be offered to our clients."
As part of the Agreement, BLOCKStrain will invest up to $750,000 in Integral, subject to the completion of due diligence and the entering into of the definitive agreements, as well as the successful completion of various benchmarks and milestones. The investment will be made in the form of a convertible note at seven percent interest per annum, and is convertible to Class A common shares in Integral at BLOCKStrain's option, at an agreed upon pre-money valuation of approximately $1.7 million dollars CAD.
"We have been working with the incredibly talented team at Integral Genomics for months now, and we believe the testing regimens they've developed will become a critical aspect of our product offering to Licensed Producers, regulatory bodies and even to consumers," Galarza said. "Product integrity is paramount to the success of the cannabis industry and together BLOCKStrain and Lighthouse will bring transparency, trust and a deeper scientific understanding about what cannabis strains can do for patients and customers. We are excited about combining our world class teams in science and technology."
Integral's founder Tim Harvey says the partnership was a logical step for both companies.
"Lighthouse and BLOCKStrain share a common vision of the positive evolution we're aiming to support as the industry proceeds into the legal era," said Harvey. "As a company, Lighthouse exists to shine a light on a plant's genetic code, and also to cast a light on positive players in the industry, companies that proudly stand behind their product and practices.
"That's exactly what BLOCKStrain is here to do, and by joining forces we're more than the sum of our parts."
In addition to providing ongoing services for the BLOCKStrain software solution, Integral will function as an in-house genetics think tank and research division, assisting in design of new genetics-based services for the industry.
ON BEHALF OF THE BOARD OF DIRECTORS
Chief Executive Officer and Director
About BLOCKStrain Technology Corp.
BLOCKStrain Technology Corp. (TSX-V: DNAX.V) has developed the first integrated blockchain platform that registers and tracks intellectual property for the cannabis industry. Strain protection and genetic identification are major issues for growers and breeders, and this new technology allows them to identify and secure rights to their valuable intellectual property (IP). The BLOCKStrain platform also streamlines the administrative process of genetic and mandatory quality-control testing for legal cannabis, cutting the administrative time and expense in half.
BLOCKStrain's proprietary, immutable, cryptographically-secure blockchain-technology establishes a global 'single source of truth' for cannabis strains, their ownership, potency and chemical makeup. In an industry where a popular strain can be worth millions of dollars, it is crucial to the industry's future to quantify genetics, potency and equivalencies between cannabis products. BLOCKStrain delivers needed transparency to growers, retailers, regulators, and consumers who have struggled to find realistic solutions to these logistical challenges. The good news is that the blockchain technology implemented by BLOCKStrain is ideally suited to solve these kinds of problems by implementing an immutable and non-corruptible record of transactions.
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.
Disclaimer for Forward-Looking Information (Always See If This Needs Updating)
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's future business plans. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include statements relating to: the fact that the Agreement with Integral will lead to advancements in science and technology which can be offered to the Company's clients and that Integral's testing regimes will become a critical aspect of the Company's product offering. Such statements are based on management's current assumptions with respect to the regulatory environment for cannabis, the expected applications of its technology and other factors, and are subject to various risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including that: BLOCKStrain's platform may not operate as expected; the cannabis industry may not use the BLOCKStrain platform once it is built; legislative changes may occur that negatively impact BLOCKStrain's business; BLOCKStrain's platform may not adequately protect users' intellectual property; Integral's testing regimes may not be in demand by the Company's clients; and other factors beyond the Company's control. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Readers are urged to consider these factors carefully in evaluating the forward-looking statements contained in this news release and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. These forward-looking statements are made as of the date hereof and the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.
SOURCE BLOCKStrain Technology Corp.
For further information: please visit the Company's website at: www.blockstrain.io or contact Al Olson at (425) 985-6451 or email at [email protected]