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VANCOUVER, Jan. 30, 2019 /CNW/ - LYF FOOD TECHNOLOGIES INC. ("LYF") is pleased to announce that significant progress has been made with regards to facility construction, strategic partnerships, business development, and has applied for a standard processing licence from Health Canada. LYF is now beginning to fully execute the long-term strategic plan of becoming an industry leader in the value-added cannabis products sector, specifically in nutraceuticals, functional foods and traditional edibles.
LYF has over 25 years' experience in manufacturing a vast array of food products for some of the largest grocery stores, health and wellness retailers and pharmacies across Canada. This large-scale food manufacturing makes them well positioned to service the cannabis market with a commitment to sourcing only the highest quality cannabis extracts and food ingredients.
"We are excited to be at the forefront of the cannabis edibles and functional foods industry, helping to lead, regulate, research and develop consumer products. LYF has the experience and technical expertise that will lead to the highest levels of safety and consistency in our products, while focusing on the ability to scale and realize healthy operating margins from a business standpoint", said Paolo Pero, CEO of LYF.
From initial ideation 2-years ago, LYF has developed into a scalable business, with the ability to manufacture over $250,000,000 worth of value-added cannabis products per year, once final regulations are passed and licensing is completed on their wholly-owned, purpose-built facility in Kelowna, BC.
With the help of regulatory and licensing experts from Cannabis Compliance Inc. (CCI), who have a legacy of success in helping cannabis companies be successful, LYF is confident they will receive their standard processing licence in the coming months.
LYF is currently looking to raise $4,000,000 via a convertible note offering (the "Offering"). Proceeds will be used to complete the build-out of the Kelowna manufacturing facility, order production equipment and machinery, business development, marketing and for general corporate purposes. This Offering comes in the form of Secured Convertible Debentures, with each note earning 8% interest and exercisable at $0.25 per share for a period of three (3) years. The investment round is open to accredited investors, with a $10,000 minimum investment.
The Offering is expected to close on or about February 8, 2019, subject to customary closing conditions and LYF having the right to extend the closing at its sole discretion. This announcement is neither an offer to sell nor a solicitation of an offer to buy the notes or the common shares of LYF into which the notes are convertible and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
The convertible notes and any common shares of LYF issuable upon conversion of the notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities laws, or qualified for distribution by prospectus in Canada, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements, or sold in Canada absent an exemption from the prospectus requirements of Canadian securities laws.
About LYF Food Technologies Inc. Expertly crafted chocolate, confectionary, baked and health food edibles are what we do best. We have over 25 years of experience in large-scale food manufacturing for some of the biggest grocery stores, health and wellness retailers and pharmacies across Canada and combine that expertise with science-led R&D in nutraceuticals, micro-dosing, and proprietary delivery methods.
LYF is committed to sourcing only the highest quality cannabis extracts and food ingredients. Our products will be scientifically dosed in our state-of-the-art, Health Canada certified* 10,500 square foot cannabis specific manufacturing facility that was purpose built, and includes fully automated production lines featuring advanced robotics.
Following the announcement from Health Canada proposing edibles legalization by October 2019, LYF has secured multiple strategic partnerships with private and publicly traded licensed producers (LP's) and are well positioned to be a market leading manufacturer, offering white label solutions that will turn potential competitors into strategic partners. LYF has the production capacity to manufacture over $250,000,000 of edibles per year in a safe and consistently dosed manner, while paying homage to tried and tested taste profiles and textures but being innovative and forward thinking to keep up with consumer trends.
Cautionary Notes Completion of the Offering is subject to a number of conditions. The Offering cannot close until all required regulatory and corporate approvals are obtained. There can be no assurance that the Offering will be completed as proposed, or at all. Trading in the securities of LYF should be considered highly speculative.
This news release may include forward-looking statements that are subject to inherent risks and uncertainties. All statements within this news release, other than statements of historical fact, are to be considered forward looking. Although LYF believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those described in forward-looking statements. Factors that could cause actual results to differ materially from those described in forward-looking statements include market fluctuations, availability of capital and financing, and general economic, market and business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. LYF does not assume any obligation to update any forward-looking statements except as required under applicable laws.