CALGARY, June 4, 2018 /CNW/ - Target Capital Inc. d.b.a. CBi2 Capital ("CBi2" or the "Company") (TSXV: TCI) (CSE: TCI) is pleased to announce that it has entered into a series of definitive investment agreements with JAEB Designs Inc. ("JAEB"), the maker of the PenSimple cannabis grinder. Subject to certain financial and operational performance thresholds, CBi2 will invest US$500,000 into JAEB through a series of three separate financings over the next 12-18 months and, assuming no additional capital is raised by JAEB during this time, will result in CBi2 holding a 16.60% equity position in JAEB. In addition, upon investing a total of US$340,000 into JAEB, CBi2 will hold a seat on JAEB's board of directors.
JAEB is a Boulder-based engineering company that designs and manufactures cannabis accessories. JAEB is focused on creating strategic products as well as international patents and trademarks for smoking and vaporizing devices and accessories, dosing and measuring devices for flower and concentrates, value-adding processing equipment, and speciality coatings and application technologies. JAEB is a graduate of CanopyBoulder's cannabis accelerator program.
JAEB's debut product, PenSimple, is a one-handed cannabis grinder that allows for easier use and clean-up while also maximizing the amount of flower retained after grinding. JAEB has sold over 13,000 PenSimple units since its launch 18 months ago, generating over US$900,000 in revenue, and continues to work on designing an improved second-generation version of the product, as well as developing modular PenSimple accessories.
Building on the success of PenSimple, JAEB has identified further opportunities to create products strategically designed to improve upon the way users currently consume cannabis and enhance their overall experience. JAEB has three additional products nearing commercial sales and another 25+ products in various stages of development. Proceeds from CBi2 strategic investment will be used by JAEB to continue to advance products through its development pipeline to commercial sales, broaden its distribution network as well as increase its marketing and sales budget for the PenSimple product.
CBi2 Capital has also delayed its Annual General Meeting ("AGM"). Details of the rescheduled AGM will be published shortly and notice thereof will be given to Shareholders.
About CBi2 Capital
Target Capital Inc., to be renamed CBi2 Capital Corp. is a Calgary, Alberta based company engaged in making strategic investments in private companies, including small start‐up operations and land development corporations. CBi2's common shares are listed on the TSX Venture Exchange and the Canadian Securities Exchange under the trading symbol "TCI". Target is executing on a cannabis-focused investment strategy, where it intends to develop and manage a diversified portfolio of predominantly early stage cannabis investment opportunities. Target will explore and invest in a number of strategic investment opportunities in the medical and recreational cannabis industry and in businesses offering ancillary supportive products and services. Upon receipt of shareholder approval, Target will change its name to "CBi2 Capital Corp.".
Forward-Looking and Cautionary Statements
This news release may include forward-looking statements including opinions, assumptions, estimates, and, more particularly, statements concerning: CBi2's investment strategy and the ability to exercise thereon; and JAEB Designs business strategy and the ability to exercise thereon.
When used in this news release, the words "will," "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "should," and similar expressions are intended to be among the statements that identify forward-looking statements.
The forward-looking statements are founded on the basis of expectations and assumptions made by CBi2 which include, but are not limited to, the availability of suitable investment opportunities in the cannabis industry; the estimated growth in the cannabis market; shifts in public opinion regarding cannabis; market trends in the cannabis industry, the securities markets and the general economy; and the expected adult-use cannabis legalization in Canada.
Although CBi2 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 CBi2 can give no 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 cannabis industry in general; actions and initiatives of federal and provincial governments and changes to government policies and the execution and impact of these actions, initiatives and policies, including the fact that adult-use cannabis is currently illegal under federal and provincial law; the size of the medical-use and adult-use cannabis market; competition from other industry participants; and other factors more fully described from time to time in the reports and filings made by CBi2 with securities regulatory authorities.
The forward-looking information contained in this news release is made as of the date hereof and CBi2 undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward looking information contained in this news release is expressly qualified by this cautionary statement.
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 news release.
SOURCE CBi2 Capital
For further information: Sonny Mottahed, Chairman, Chief Executive Officer and President or Bill Macdonald, Executive Vice President - Corporate Development, CBi2 Capital, Suite 300, 407 - 3rd Street SW, Calgary AB, T2P 4Z2, Phone: 403.351.1779, Email: [email protected]