KELOWNA, BC, Feb. 6, 2019 /CNW/ - Liht Cannabis Corp. (CSE: LIHT) (OTCQX: LIHTF) or the "Company") is pleased to announce the Company has entered into a joint venture agreement (the "JV Agreement") dated January 30, 2019 with 1186626 B.C. Ltd., a private British Columbia corporation, for a second cannabis cultivation property located in Chase, British Columbia.
1186626 B.C. Ltd. is in the final stages of acquiring a 120 acre parcel of land zoned "Approved Use" by the Thompson-Nicola Regional District (the "TNRD") for the purpose of developing and operating bio-secure organic cannabis production facilities of up to 486,000 square feet. The project will be financed by 1186626 B.C. Ltd with an approximate cost to lock-up stage of C$81,600,000. Ground work to commence as soon as weather permits.
Liht proposes to attach a secondary license to the Chase property, whether through extending its current late stage Health Canada application, which is attached to the Celista property (if and when it is granted), acquiring an individual secondary license or a late stage license application.
This ideal property has been selected for a number of reasons:
Approved Use by the TNRD
Close proximity to Highway 1, the main route of the Trans-Canada Highway through British Columbia, allowing for future distribution coast to coast
Multiple natural springs for an abundance of exceptional water
Labour resources from the Thompson-Nicola Region
Emergency services adequately meet Health Canada guidelines
Cost of production will be reduced by the implementation of a cogeneration system, providing a viable and beneficial power alternative which allows us to avoid costly conventional sources.
"Our partnership is aligned and collectively we are committed to our unique, innovative technology for the production of low cost organic cannabis. Increasing our footprint in British Columbia will significantly raise our product output to supply the expected long term demands of the Canadian market. Our product will meet, if not exceed, the consumption standards as set out by Health Canada." Linda Sampson, President and COO
Terms Of Agreement
Pursuant to the JV Agreement, a designated nominee of Liht's joint venture partner will hold the title to the B.C. property to be acquired.
The parties will hold proportionate interests in the corporation holding the property and project. Liht will be responsible for constructing one or more facilities on the property for the purpose of producing cannabis and Liht's joint venture partner will fund the construction and related operational expenses and ancillary costs.
The potential cash flows available for distribution to the parties in any given month during the currency of the JV Agreement will be divided between the parties as follows: (a) in the event that at the time of a cash flow distribution Liht has not repaid in full all capital expenditures contributed: (i) 20% to Liht; (ii) 80% to the joint venture partner; (b) in the event that at the time of the cash flow distribution Liht has repaid in full all capital expenditures contributed: (i) 50% to Liht; (ii) 50% to the joint venture partner. These agreements will allow Liht to continue its growth strategy in the Province of British Columbia.
Liht Cannabis Corp. is a publicly traded company investing in the medical and recreational cannabis space, since 2014. Liht has rapidly expanded to include cultivation, production and dispensary locations in the key North American states of Washington, Nevada, and California, and are seeking expansion opportunities worldwide.
Liht trades in Canada, ticker symbol LIHT on the CSE, in the United States, ticker symbol LIHTF on the OTCQX.
Neither the CSE nor its Regulation Services Provider, nor the OTCQX® has approved nor disapproved the contents of this press release. Neither the CSE nor the OTCQX® accepts responsibility for the adequacy or accuracy of this release.
MARIJUANA INDUSTRY INVOLVEMENT:
Canadian listings (CSE) will remain in good standing as long as they provide the disclosure that is rightly required by regulators and complying with applicable licensing requirements and the regulatory framework enacted by the applicable state in which they operate.
Liht owns marijuana licenses in California and Nevada. Marijuana is legal in each state however marijuana remains illegal under US federal law and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that Liht's ability to access private and public capital could be affected and or could not be available to support continuing operations.
Liht's business is conducted in a manner consistent with state law and is in compliance with licensing requirements.
Copies of licenses are posted on Liht's website. Liht has internal compliance procedures in place and has compliance focused attorneys engaged in jurisdictions to monitor changes in laws for compliance with US federal and state law on an ongoing basis. These law firms inform any necessary changes to our policies and procedures for compliance in Canada and the US.
FORWARD - LOOKING STATEMENTS:
Certain statements in this release are forward-looking statements, which includes, the potential joint-venture, the expected outcomes of its business, and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur. Forward-looking statement are necessarily based upon a number of factors that, if untrue, could cause the actual results, performances or achievements of the Company to be materially different from future results, performances or achievements express or implied by such statements. These assumptions, risks and uncertainties include, among other things, the state of the economy in general and capital markets in particular, present and future business strategies, the environment in which the Company will operate in the future, and other factors, many of which are beyond the control of the Company. While such estimates and assumptions are considered reasonable by the management of the Company, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks.
Forward-looking statements are subject to a variety of risks and uncertainties, which could cause actual events, level of activity, performance or results to differ materially from those reflected in the forward-looking statements, including, without limitation: that laws and regulations may become more onerous; the ability of the Company to obtain necessary financing; the economy generally; the future growth, results of operations, performance and business prospectus and opportunities; changes in and the effect of government policies; demand for products; competition; anticipated and unanticipated costs; reliance on management; claims and legal proceedings; conflicts of interest; and market price and volatility of the common shares. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, continued availability of capital and financing and general economic, market or business conditions, the loss of key directors, employees, advisors or consultants, technology failures, failure to obtain a license from Health Canada or from other government agencies, failure to develop new and innovative products, failure of counterparties to perform their contractual obligations, fees charged by service providers, litigation, changes in laws, competition, and an increase in operating and constructions costs. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Investors are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements.
The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above. The Canadian Securities Exchange has not reviewed, nor approved the contents of this news release.
SOURCE Liht Cannabis Corporation
For further information: www.lihtcannabis.com or Linda Sampson, President & COO, [email protected], 778-583-4476