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LiveWell to Bring to Market Hemp-Based CBD Products in 2019
GATINEAU, QC, Aug. 13, 2018 /CNW Telbec/ - LIVEWELL CANADA INC. (TSXV: LVWL) ("LiveWell Canada" or the "Company") is pleased to announce that it has secured 1,000 acres of Canadian industrial hemp biomass for the purpose of extracting and producing cannabinoid (including "CBD") based products for distribution in Canada. Using current extraction technology licensed to LiveWell, the Company anticipates extracting approximately 25,000 kg of CBD for sale under the Access to Cannabis for Medical Purpose Regulations ("ACMPR"). It is expected to be harvested in mid-August 2018 and brought to market in 2019. Based on observable broker quotations, the current wholesale value for each kilogram of CBD isolate is approximately US$6,500. Additionally, as part of this transaction, LiveWell secured an option to buy an additional 1,000 acres of Canadian industrial hemp biomass at the same price no later than September 30, 2018. The total purchase consideration for this transaction, including the option, was US$10 million.1
CBD is a non-psychotropic cannabinoid sought for its health benefits. It is currently under medical research for the treatment of anxiety, psychosis, inflammatory and neurodegenerative diseases, epilepsy, arthritis, multiple sclerosis and more. Due to its excellent safety profile, CBD is undoubtedly one of the more interesting cannabinoids with a high potential for therapeutic use.
"This purchase of large industrial hemp biomass supply is in line with our strategic vision to become a global CBD market leader, by delivering high-quality innovative CBD health and wellness products in 2019." said Mr. David Rendimonti, President of LiveWell Canada.
About LiveWell Canada
LiveWell Canada Inc. (TSX-V: LVWL) is an innovative Canadian company planning to become a leader in a new approach to health and wellness by conducting advanced studies on cannabidiol (CBD) and other cannabinoids in its world-class Research and Innovation Centre located in Litchfield, Québec. The Company's mission also includes developing and distributing prescription and consumer health products. With more than 1.5 million square feet of greenhouses under construction located in Ontario and Québec, the Company is supported by renowned academic and business partners such as Canopy Growth (TSX: WEED, NYSE: CGC) and Canopy Rivers.
Cautionary Note Regarding Forward-Looking Statements
This release includes forward-looking statements about the Company and its business. Often, but not always, forward-looking statements can be identified by the use of words such as "plan", "continue", "expect", "schedule", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements (including negative variations) that certain events or conditions "may" or "will" occur. Such statements are based on the current expectations of management. The forward-looking events and circumstances discussed in this release may not occur by certain specified dates or at all and could differ materially as a result of unknown and known risk factors and uncertainties affecting the Company, including risks regarding the cannabis and hemp industry, the Company obtaining its extraction and sales license from Health Canada, new Health Canada regulations coming into effect in October 2018 allowing licensed producers to process industrial hemp for the purpose of extracting CBD oil, achieving a 5% yield on biomass and 50% extraction efficiency, and the current wholesale value for CBD may change materially in 2019. The Company cautions that this foregoing list of material factors is not exhaustive, and readers are encouraged to read all Risk Factors disclosed in the Company's Filing Statement dated May 29, 2018.
The forward-looking information contained in this press release represents expectations of the Company as of the date of this press release and accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, it does not undertake to update this information at any particular time except as required in accordance with applicable securities laws.
For more information, visit www.livewellcorp.com
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy of this release.
This transaction is subject to the following risk factors and uncertainties including but not limited to: LiveWell obtaining its extraction and sales license from Health Canada, new Health Canada regulations coming into effect in October 2018 allowing licensed producers to process industrial hemp for the purpose of extracting CBD oil, achieving a 5% yield on biomass and 50% extraction efficiency, and the current wholesale value for CBD may change materially in 2019. See Cautionary Note Regarding Forward-Looking Statements.
SOURCE LiveWell Canada Inc.
For further information: Media: Sonya Lord, 866 308-1518, [email protected]; Léa Manuel, 514 569-7282, [email protected]; Investors: Nicole Marchand, 416 428-3533, [email protected]; Company: David Rendimonti, President, 819 718-2042, [email protected]; Steven Archambault, Chief Financial Officer, 819 718-2042, [email protected]