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NAC to provide medical cannabis services to Canadian pharmacies and health care centres.
OTTAWA, April 9, 2018 /CNW/ - National Access Cannabis Corp. ("NAC" or the "Company") (TSXV: NAC), Canada's best practices leader in delivering secure, safe and responsible access to legal cannabis, today announced that it has acquired a 51% ownership stake in Cannabis Care Group Inc. ("CCG"), an entity that has established service agreements ("Service Agreements") with over 40 pharmacies in Canada that provide turnkey cannabis program solutions for medical cannabis patients and, when legally permissible, in respect of on-site medical dispensing (the "Acquisition"). In connection with the Acquisition, CCG changed its name to National Access Cannabis Medical Inc. ("NACM").
"Through the growing network of pharmacies that NACM has assembled, we will help pharmacists supply Canadian patients with the best cannabis medications sourced from key Licensed Producers," said Mark Goliger, Chief Executive Officer of National Access Cannabis. "Broadening our addressable market to include Canadian pharmacies, on top of our growing recreational presence, allows NAC to operate in provinces that we would not otherwise have access to. Our background in operating medical care clinics combined with our deep knowledge of safety, security and harm reduction is perfectly suited to a pharmaceutical setting."
Mr. Goliger added, "It is NAC's plan to prepare and support pharmacies as they eventually transition to onsite dispensing. We expect NACM to continue to add other health care centres and pharmacies to NACM's growing network by executing additional services agreements with new counterparties."
"This is an opportunity to provide Canadian pharmacists and their patients with an effective alternative to opioids and neuroleptics," said Felipe Campusano, Chairman of the Pharmacist Advisory Board of NACM. "Maintaining our focus on the practical medical applications for cannabis is important as Canada moves towards recreational approval. With the depth of knowledge we've assembled on our team, and the successful clinic operation experience NAC brings to our company, I look forward to continuing to expanding our network of pharmacies across Canada."
The Acquisition was completed pursuant to a share purchase agreement ("Share Purchase Agreement") entered into between NAC, 2627639 Ontario Inc. ("2627639"), 2627786 Ontario Inc. ("2627786", and together with 2627639, the "Vendors"), pursuant to which NAC acquired 51% of NACM for an aggregate purchase price of $4,040,000, payable to the Vendors through the issuance of common shares (the "NAC Shares") in the capital of NAC. The Share Purchase Agreement provides that for a period of up to five years from the date hereof (the "Closing Date"), the Vendors shall be entitled to receive up to $6,080,000 of additional NAC Shares, which may be issuable to the Vendors as follows: (i) $1,040,000 in the event 10,000 additional patients are assisted by NACM; and (ii) up to $5,040,000 in the event new pharmacies or health care centres in Canada enter into Service Agreements with NACM such that the aggregate number of contracted pharmacies and health care centres with NACM is greater than 300. In connection with the Acquisition, NAC entered into a shareholders agreement with the Vendors, in respect of NACM.
Completion of the Acquisition is subject to the receipt of all necessary regulatory approvals, including the approval of the TSXV.
About National Access Cannabis
National Access Cannabis is Canada's best practices leader in delivering secure, safe, and responsible access to legal cannabis. Through its Canada-wide network of care centres, NAC enables patients and the public to gain knowledge and access to Canada's network of authorized Licensed Producers of Cannabis. National Access Cannabis Corp. is listed on the TSX Venture Exchange under the symbol (TSXV: NAC). For more information, visit www.nationalaccesscannabis.com
This news release contains forward looking statements and forward looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward looking statements or information. Forward-looking statements and information in this news release includes, but is not limited to, statements concerning future issuances of NAC Shares, the addition of new health care centres and pharmacies to the NACM network and the possibility and likelihood of future recreational cannabis legislation. Although the Company believes that the expectations and assumptions on which the forward looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because the Company cannot give any assurance that they will prove to be correct. Since forward looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results and developments may differ materially from those that are currently contemplated by these statements depending on, among other things, the risks of the failure to obtain final acceptance by the TSX Venture Exchange of the Acquisition, that NAC Share issuances dependent on certain milestones identified in the Share Purchase Agreement may not be achieved for any reason (including the failure to obtain the required approvals or clearances from regulatory authorities) and that legislation applicable to cannabis does not change. The statements in this news release are made as of the date of this release.
The forward-looking statements and information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward looking statement or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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.
SOURCE National Access Cannabis Corp.
For further information: National Access Cannabis Corp., Mark Goliger, Chief Executive Officer, 1 (800) 411-1126,Info@NationalAccessCannabis.com; Investor Relations, Robert Kelly, LodeRock Advisors Inc., (416) 992-4539, email@example.com