SASKATOON and OAKVILLE, ON, Feb. 7, 2019 /CNW/ - ZYUS Life Sciences Inc. ("ZYUS") and Up Cannabis Inc. ("Up Cannabis"), a wholly-owned subsidiary of Newstrike Brands Ltd. (TSX-V: HIP) ("Newstrike"), are pleased to announce that they have entered into a definitive Supply Agreement (the "Agreement") for ZYUS to purchase dried bulk cannabis from Up Cannabis.
Up Cannabis will supply bulk dried cannabis as raw material for processing by ZYUS into its emerging brand of cannabinoid-based products, subject to the receipt of licensing by ZYUS under the Cannabis Act and the Controlled Drugs and Substances Act, which ZYUS anticipates receiving in the first half of 2019.
"Providing access to a consistent supply of high-quality medical cannabis products for both patients and their healthcare providers in the domestic and international market is what will set ZYUS apart in today's fast-growing medical cannabis market," said Brent Zettl, President and CEO of ZYUS. "The signing of this initial supply agreement with an experienced licensed producer, will put into action our comprehensive raw material grading system and is a critical step to effectively produce GMP-compliant, targeted, cannabinoid-based phyto-therapeutic products. A significant amount of this initial supply will be used for our clinical trial program."
According to Jay Wilgar, CEO of Newstrike and Up Cannabis, the supply agreement will help to further expand and diversify Up's distribution channels as capacity is increased.
"We are excited to partner with Brent and his team at ZYUS," said Wilgar. "Our industry continues to rapidly evolve and this is yet another way that we are strengthening our position as a leading player. This agreement in particular aligns us with some of the best minds in the industry which will only help us to continue to build value for Newstrike's shareholders. We look forward to taking this step alongside ZYUS and one of the country's most experienced cannabis professionals."
ZYUS is a Canadian-based, globally focused biopharmaceutical company that offers patients cannabinoid and other phyto-therapeutic medical solutions. Through our buildout of high margin Canadian and international GMP extraction facilities, global distribution partners, advanced clinical research and IP development, we will deliver high-quality oils, capsules, topical creams and other therapeutic formulations to patients worldwide.
At ZYUS, we are shifting the paradigm from the treatment of physical disease to caring for overall well-being by accelerating adoption of cannabinoids as a medical solution. To achieve this, we are investing in clinical research, advancing manufacturing, defining scientific standards, delivering leading education and support, and raising awareness of medical need across the industry.
Newstrike is the parent company of Up Cannabis Inc., a licensed producer of cannabis that is licensed to both cultivate and sell cannabis in all acceptable forms. Newstrike, through Up Cannabis and together with select strategic partners, including Canada's iconic musicians The Tragically Hip, is developing a diverse network of high quality cannabis brands. For more information, visit http://www.up.ca or http://www.newstrike.ca
This news release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Newstrike and ZYUS to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements include, but are not limited to, statements relating to both ZYUS' and Newstrike's expectations with respect to the supply, distribution and sales of cannabis and statements relating to expectations with respect to receipt of licensing by ZYUS under the Cannabis Act and the Controlled Drugs and Substances Act. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. In respect of the forward-looking statements and information concerning the supply agreement and issuance of ZYUS' licencing under the Cannabis Act and the Controlled Drugs and Substances Act, ZYUS and Newstrike have provided such statements and information in reliance on certain assumptions that they believe are reasonable at this time. The proposed supply agreement could be modified, restructured or terminated and issuance of ZYUS' license could be delayed. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release. Since forward-looking statements and information 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. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward-looking statements contained in this news release are made as of the date of this release and, accordingly, are subject to change after such date.
Newstrike and ZYUS do not assume any obligation to update or revise any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf, except as required by applicable law.
Neither 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.