Xanthic Biopharma Inc. announces strategic partnership and licensing agreement with Avitas CBD Water, LLC
Xanthic Biopharma Inc. (formerly Aurquest Resources Inc.) (“Xanthic”) is pleased to announce that it has entered into a licensing and strategic partnership agreement (the “Agreement”) with Avitas CBD Water, LLC (“Avitas”). Avitas, based in Portland, Oregon, will be producing and distributing CBD-infused water, co-branded with “Powered by Xanthic Solubles.” Under the terms of the Agreement, Xanthic is making a strategic investment in Avitas, acquiring a 45% ownership position in exchange for a cash payment of USD$600,000 and the issuance of up to 600,000 common shares of Xanthic, with an aggregate value of USD$300,000 at USD$0.50 per common share, subject to certain performance milestones over the next 12 months.
Avitas is currently seeking distribution, and is planning to be in production by April 2018.
Ryan Maxson, Co-Founder and CEO of Avitas comments, “We are proud to be one of the first companies to license the Xanthic brand and look forward to entering the West Coast market. Our team has over two decades of combined experience in both the food and cannabinoid industries. With our vision and Xanthic’s support, we expect to make waves in the infused water category.”
Tim Moore, the CEO of Xanthic, states, “This strategic partnership is Xanthic’s first step in proving that our proprietary technology is a viable licensing investment for producers and distributors across North America. We’re thrilled to be able to not only license our brand to Avitas, but to also work as a strategic partner to assist Avitas with their penetration of the infused water market. Moving forward, our corporate vision is to continue to provide the “Powered by Xanthic” technology to producers and distributors across various product categories and in multiple jurisdictions.”
Xanthic, through its wholly-owned operating subsidiary, Xanthic Biopharma Limited, provides valuable intellectual property to cannabis industry participants, enabling its strategic partners to produce high quality, innovative, non-combustible cannabis, and cannabis-infused products which deliver consistent THC and/or CBD levels. Using a proprietary process, Xanthic allows its strategic partners to deliver superior cannabinoid solubility, improved bioavailability, accurate micro-dosing and greater consistency versus competitive infused products.
This news release may contain forward-looking statements and information based on current expectations. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. There is no assurance that the Agreement with Avitas will successfully produce benefits for Xanthic. Although such forward-looking statements are based on management’s reasonable assumptions, there can be no assurance that such assumptions will prove to be correct. We assume no responsibility to update or revise them to reflect new events or circumstances, except as required pursuant to applicable securities laws.
Xanthic’s securities have not been registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), or applicable state securities laws, and may not be offered or sold to, or for the account or benefit of, persons inthe United States or “U.S. Persons”, as such term is defined in Regulation S under the U.S. Securities Act, absent registration or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States or any jurisdiction in which such offer, solicitation or sale would be unlawful.