Emblem (TSXV:EMC,OTCQX:EMMBF) (“Emblem” or the “Company”) through its wholly-owned subsidiary Emblem Cannabis Corporation, a licensed producer of medical cannabis under the Access to Cannabis for Medical Purposes Regulations (“ACMPR”), and Natura Naturals Holdings Inc. (“Natura”) announced the termination of their letter of intent as of 5 p.m. EST on September 13, 2018.
“Emblem looks forward to maintaining its strong business relationship with the Natura team as both a shareholder and in connection with our existing 3,000 kg supply agreement in the coming years,” said Nick Dean, CEO of Emblem Corp.
In addition, as previously announced, Emblem recently provided $2 million of advanced funding to Natura for the expansion of its facility (the “Funding”). The Funding is comprised of a one-year convertible debenture for an aggregate principal amount of up to $2 million, with an interest rate similar to Natura’s other funding obligations and can be pre-paid at any time during the term. The first tranche of $500,000 was advanced on August 23, 2018, with subsequent payments made on August 30, September 6 and September 13, 2018. The Funding is convertible into Natura shares at $0.80 per share plus one full share purchase warrant exercisable at $1.05. In the event Emblem elects to convert the Funding into Natura shares, Natura and Emblem would concurrently enter into an additional 2,000 kg supply agreement on substantially the same terms as the supply agreement completed on July 17, 2018.
Emblem, through its wholly-owned subsidiary Emblem Cannabis Corporation, is a fully integrated licensed producer and distributor of medical cannabis and cannabis derivatives in Canada under the ACMPR. Emblem’s state-of-the-art indoor cannabis facility and research and development laboratory is located in Paris, Ontario. Led by an experienced management team of healthcare executives, accomplished marketing professionals, and cannabis experts, Emblem is focused on driving shareholder value through product innovation, brand relevance, and access to patient and consumer channels. Emblem is also the parent company of GrowWise Health Limited, one of Canada’s leading cannabis education services. Emblem trades under the ticker symbol EMC on the TSX Venture Exchange. For more information visit www.emblemcorp.com.
Based in Leamington, Ontario, Natura Naturals is a licensed cultivator of medical cannabis pursuant to the ACMPR. The company’s cultivation facility is capable of producing plants in a 662,000+ square feet greenhouse facility under optimal growing conditions. Natura grows high-quality hydroponic cannabis which can be used for various medical and recreational applications. Natura has an extensive genetics library and continues to develop innovative products for the Canadian and International marketplace.
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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements, including statements with respect to the proposed acquisition of Natura. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “achieve”, “could”, “believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”, “outlook”, “expect”, “may”, “will”, “project”, “should” or similar words, including negatives thereof, suggesting future outcomes. Management of the Company believes the expectations reflected in such forward-looking statements are reasonable as of the date hereof but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Various material factors and assumptions are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Those material factors and assumptions are based on information currently available to the Company, including data from publicly available governmental sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which the Company believes to be reasonable. However, although generally indicative of relative market positions, market shares and performance characteristics, such data is inherently imprecise. While the Company is not aware of any misstatement regarding any industry or government data presented herein, the cannabis industry involves risks and uncertainties and is subject to change based on various factors.
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