Blox Labs Inc. (CSE:BLOX) (Frankfurt: BR1B) (“Blox” or the “Company”), wishes to announce that it has entered into a definitive share exchange agreement dated as of February 28, 2019 (the “Agreement”) with Best Cannabis Products Inc. (“BCP”) and all of the BCP shareholders, pursuant to which Blox proposes to acquire all of the issued and outstanding shares (the “BCP Shares”) of BCP (the “Transaction”) in exchange for common shares of Blox (the “Blox Shares”).

About Best Cannabis Products Inc.


BCP was incorporated on February 6, 2018 under the Canada Business Corporations Act. The Company’s principal business activity is to engage in the investment, production of and sale of cannabis upon making application and receiving the requisite licenses mandated under the Cannabis Act of Canada.

BCP is headquartered in Toronto, Ontario and is backed by a group of successful entrepreneurs who have extensive experience in the areas of manufacturing, logistics and renewable energy. BCP has secured a state of the art agricultural facility (the “Leamington Facility”) in Leamington, Ontario – a preeminent locale for cannabis cultivation in Canada. The current facility consists of 180,000 square feet of cultivation space and is situated on 50 acres of land. BCP has engaged industry experts David Hyde and Associates along with Eurofins to assist with the implementation and compliance with the Licensed Producer application process. BCP is in the process of submitting its final Licensed Producer application under the Cannabis Act. Further, BCP is in active discussions with other Canadian Licensed Producer cannabis companies as potential partners for an expansion site location.

“We couldn’t be more pleased to have finalized a definitive arrangement with Best Cannabis Products”, stated Jeff Zanini, BLOX CEO. He continued, “We are strongly committed to embark on this remarkable journey into the burgeoning Cannabis industry along with all of the ancillary business opportunities it has to offer. We want to thank our shareholders for their patience and we look forward to updating them as we move forward during this exciting time.”

Brian Polla, President of BCP added “Today’s exciting achievement is the beginning of a continuous effort to build a remarkable Cannabis facility in the Leamington, Ontario, area. This premier 50 acre parcel of land and 180,000 sq. feet of greenhouse will capitalize on a multitude of avenues that the cannabis industry in Canada is providing. We have already assembled a first class team of experts in the world of Cannabis, Sports Science and Consumer Packaging, and we will continue to assure unique and innovative experiences are delivered from our great company.”

About the Combined Entity

Upon completion of the Transaction, Blox is expected to be classified as a Life Sciences Issuer under the policies of the Canadian Securities Exchange (“CSE”) and would focus on expanding BCP’s current business operations. The Company will change its name to Sire Bioscience Inc.

Summary of the Proposed Transaction

The Transaction will be completed on an arm’s length basis and contemplates the following proposed terms:

  • – prior to the closing of the Transaction, Blox shall complete an arm’s length private placement of common shares for gross proceeds of up to $5,000,000 (the “Transaction Financing”), with each common share being issued at a price of CDN$0.05; and
  • – upon completion of the Transaction, each BCP Share shall be acquired by Blox in consideration for one Blox Share. Accordingly, Blox will issue a total of 234,800,000 common shares pursuant to the terms of the Agreement, which will constitute approximately 51.9% of the resulting issuer where the full amount of the Financing is completed.

Conditions Precedent

The Transaction is subject to a number of conditions precedent including, without limitation, the filing of a disclosure statement (Listing Statement under Form 2A) with the CSE, receipt of regulatory approval, shareholder approval and the completion of the Transaction Financing.

Shareholder Approval

The Transaction is anticipated to constitute a fundamental change and a reverse takeover in accordance with the policies of the CSE and, as such, approval of the shareholders of Blox will be required.

Resumption of Trading and Further News

Trading of the Blox Shares has been halted and will remain halted pending the satisfaction of all applicable requirements of the CSE. Blox will issue a further new release as soon as further details are available regarding the resumption of trading.

Blox Labs Inc.

Jeff Zanini

CEO and Director

Reader Advisory

No stock exchange or securities regulatory authority has reviewed or accepted responsibility for the adequacy or accuracy of this release.

Completion of the Transaction is subject to a number of conditions, including but not limited to, CSE approval. The Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the Form 2A to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Blox should be considered highly speculative.

Trading of the common shares of Blox will remain halted pending receipt and review by the CSE of acceptable documentation regarding Blox following completion of the Transaction. The proposed Transaction has not been approved by the CSE and remains subject to CSE approval.

This press 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 information or statements. More particularly and without limitation, this news release contains forward looking statements and information with respect to timing and completion of the Transaction Financing, the satisfaction of the conditions precedent to the Transaction (including shareholder approval and the receipt of CSE approval), the proposed timing and completion of the Transaction, Blox’s business and the resumption of trading. The forward-looking statements and information are based on certain key expectations and assumptions made by Blox, including expectations and assumptions concerning the business of BCP, the ability to obtain shareholder and CSE approval, the satisfaction of all other conditions to the completion of the Transaction and that BCP can obtain the requisite licensing and commercialize its products. Although Blox believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because Blox can give no assurance that they will prove to be correct.

By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to, Blox being unable to obtain the required CSE approval, the failure to complete the Transaction Financing, and that BCP cannot obtain its requisite cannabis license to commercialize its products. Some other risks and factors that could cause the results to differ materially from those expressed in the forward-looking information also include, but are not limited to: general economic conditions in Canada, the United States and globally; industry conditions, unanticipated operating events; failure to obtain any necessary third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; competition for, among other things, capital and skilled personnel; changes in tax laws; and the other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive. The forward-looking information contained in this news release is expressly qualified by this cautionary statement. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Blox undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.

The CSE has in no way passed upon the merits of the proposed Transaction and has neither approved nor disapproved the contents of this press release.

Click here to connect with Blox Labs Inc. (CSE:BLOX) (Frankfurt:BR1B) for an Investor Presentation.

Source: www.thenewswire.com

Cannabis Market Update: Q3 2020 in Review

Click here to read the previous cannabis market update.

During the first few months of investment time in 2021, cannabis faced some volatility alongside optimism about federal changes in the most important market for the drug.

The cannabis business found its stride during Q1 thanks to policy change signals and consolidation.

To find out more, the Investing News Network (INN) asked experts about progress in the market during the first major period of the new year, and which developments investors should watch out for.

 

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Cannabis market update: New York and US potential boost operations

New York state’s legalization of recreational cannabis was a huge Q1 announcement that added pressure to the US federal government when it comes to cannabis policy, said George Mancheril, co-founder and CEO of Bespoke Financial, a debt financing business with a particular focus on servicing cannabis businesses.

“It’s going to add to the chorus of voices in the federal scene to basically move sooner rather than later,” he explained to INN.

Following the US election in 2020, the momentum for cannabis businesses went on the upswing, as did company valuations, with the idea of expansion at the heart of it all, according to Mancheril.

Before starting Bespoke Financial, Mancheril learned from traditional investment banks, working in the lending, fixed income and debt markets with Goldman Sachs (NYSE:GS) and Guggenheim Partners.

Nawan Butt, portfolio manager with Purpose Investments, agrees with Mancheril. The financial expert told INN the ongoing legalization process seen in the US market is leading to expansion.

“It’s becoming more of a national move, then small pockets of proliferation. That’s very exciting about cannabis right now,” said Butt, who co-manages the Purpose Marijuana Opportunities Fund (NEO:MJJ).

This proliferation effect is causing a change in valuations and enthusiasm for US-based operations. Mancheril told INN that by the end of Q1, multi-state operators (MSOs) had raised approximately US$3.3 billion.

The cannabis lender said he sees the industry as having grown from the woes of 2019; it is now undergoing a return to form as excitement about the US opening up increases.

The expert explained that there is likely to be a windfall of capital in the wake of major federal changes in US cannabis policy, although the timeline for these changes is becoming increasingly hard to predict.

Leading up to that capital influx, Mancheril said he wants to see operators really drill down on the value of desired assets and whether they make sense.

“What I’d hope is that we continue to see bullish sentiment, but with some measure of responsibility, and let’s not just get over ahead of ourselves,” Mancheril told INN. “The idea is let’s minimize the volatility and continue growing responsibly.”

 

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As far as struggles go, Butt explained that the cannabis industry has cemented itself as a growth-type sector, and as such there are macro pressures affecting the way these assets operate.

“We’ve seen this preference for cash flows at growth in the current or in the near future, rather than in the far future, and that’s what we’re seeing as far as valuations go in the broad market,” Butt said.

Cannabis market update: Volatility continues to rule as industry foundations build

Despite the industry’s potential and the growing pains it has gone through as a whole in both the US and Canada, volatility remains a key factor in the cannabis investment scene.

Butt explained that the current shareholder base, which is dominated by hedge funds and retail investors, still lacks enough institutional support to avoid the day-to-day volatility cannabis has come to be known for.

These two investor groups, Butt said, can be easily spooked and excited by the news of the day when it comes to their investments.

“A lot of these institutions’ strategies are not about short-term profits, but they’re about long-term sustainability of the businesses themselves,” Butt said.

“That’s why you see a lot of volatility in the space, and that’s essentially what we’ve seen over the past, I’d say, three to two months as well,” he added.

That means investors shouldn’t expect an end to volatility anytime soon.

“It’s not about whether we continue to expect volatility, because we do,” Butt said. “We really think that the volatility will be taken out when the shareholder base becomes more institutional, but it’s really about understanding why there is volatility in the first place.”

Cannabis market update: Canadians talk up US business, but questions remain

A surge of mergers and acquisitions has taken over the Canadian cannabis sector recently as more producers see potential in America.

One of the biggest announcements in this regard came when Organigram Holdings (NASDAQ:OGI,TSX:OGI) secured a C$221 million investment deal from British American Tobacco (NYSE:BTI,LSE:BATS).

Using the funds, the two will work in tandem to develop new branded products designed for the international stage, including in the US. Organigram CEO Greg Engel previously told INN that the US represents a critical opportunity for Canadian companies, but the entry point isn’t as clean as it could be.

 

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While the long-term potential may be exciting for investors, Butt told INN he’s still unsure how the approach will work for Canadian companies.

The Purpose Investments expert said there will be plenty of space for the biggest Canadian names to pursue US market entries, beyond the initial hemp-derived CBD moves some operators have mde, since the US represents the biggest market in the world.

“But there’s just way too many unknowns right now to say exactly what that participation is going to look like, or when that participation will happen,” he said.

“What we do know is that currently the US MSOs are in a wonderful sort of position to expand on their market leadership that they have. And it will be tough for Canadians to come in and compete with them,” Butt said.

Canadian players still retain the upper hand at times in terms of valuation, which is confusing for both Butt and Dan Ahrens, chief operating officer and portfolio manager at AdvisorShares.

“The performance in quarterly earnings of US companies has been rather spectacular. They’ve knocked it out of the park in most instances,” Ahrens told INN.

Butt praised the recent performance reports from MSOs across the board, pointing to year-over-year growth lines and projections for continued positive performance. In his view, share prices still don’t reflect company value. “Those are really being discounted at this point,” Butt told INN.

“We’ve seen the Canadian licensed producers be really hot stock performance-wise, outpacing the US (MSOs), and I’ll say it’s rather nonsensical to me,” said Ahrens, who oversees the AdvisorShares Pure Cannabis ETF (ARCA:YOLO) and the recently launched AdvisorShares Pure US Cannabis ETF (ARCA:MSOS).

Cannabis market update: Investor takeaway

The cannabis investment proposition finds itself at an interesting moment in time, as the entire sector eagerly awaits confirmation in the US at the federal level.

While for the Canadian companies waiting on the sidelines, this development may feel like a major necessity to address current financial struggles, for US-based operators, the heat around the corner could represent future positivity for already thriving operations.

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All interested parties can join the conference call by dialing 1-888-231-8191 or 1-647-427-7450, conference ID: 4880609. Please dial in 15 minutes prior to the call to secure a line. The conference call will be archived for replay until May 20, 2021 . To access the archived conference call, please dial 1-855-859-2056 and enter the encore code 4880609.

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Appointment of Dr. Kelmendi, Assistant Professor of Psychiatry at Yale University and co-founder of the Yale Psychedelic Science Group, brings another experienced medical professional to Lobe’s advisory team.

 Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) is pleased to announce the appointment of Benjamin Kelmendi, MD, Assistant Professor of Psychiatry at Yale University School of Medicine, to its Scientific Advisory Board.

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Ayurcann Holdings Corp. ( CSE: AYUR ) (the “ Company ” or ” Ayurcann “), a Canadian extraction company specializing in the processing of cannabis and hemp for the production of oils and various derivative products, is pleased to unveil further details of its Phase 2 expansion plans.

Ayurcann has commenced trading on the Canadian Securities Exchange (” CSE “) on April 8, 2021 and subsequently announced a private placement of up to $500,000 (” Financing “), as per the Company’s press release dated April 12, 2021. The proceeds of the Financing are intended to be used to further pursue Phase 2 of the expansion of the production capacity of the Company’s Pickering facility.

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