PreveCeutical Announces LOI with Crushedit LLC to Supply CBD Isolate for Expected Sale Proceeds of $16.25 Million
Vancouver, British Columbia: PreveCeutical Medical Inc. (the “Company” or “PreveCeutical”)(CSE: PREV, OTCQB: PRVCF, FSE: 18H), announces that it has entered into a non-binding letter of intent dated November 9, 2018 (the “LOI”) withCrushedit LLC (“Crushedit”), whereby PreveCeutical’s newly created Cannabis Division (see news release dated July 24, 2018) will supply Crushedit with a minimum of 2,500 kilograms of Cannabidiol (“CBD”)isolate over a 12 month period at a purchase price of CAD $6,500.00 per kilogram, for aggregate sale proceeds of at least CAD $16,250,000 (the “Transaction”).
PreveCeutical’s Chairman, Chief Executive Officer and President, Stephen Van Deventer commented, “We are extremely excited with this transaction for our Cannabis Division. The transaction is very beneficial to PreveCeutical as the revenue from the sales of the CBD isolate positions us for future growth to increase shareholder value and allows us to continue executing our vision of becoming a global preventive healthcare company.”
Commercial Terms of the LOI
Under the terms of the LOI, PreveCeutical will supply Crushedit with a minimum of 2,500 kilograms of CBD isolate over a 12-month period. The funds paid by Crushedit in connection with the Transaction will be held in escrow until local testing of the CBD isolate is completed and all terms relating to the Transaction are agreed upon in a contract of sale to be entered into between the parties.
PreveCeutical is a health sciences company that develops innovative options for preventive and curative therapies utilizing organic and nature identical products.
PreveCeutical aims to be a leader in preventive health sciences and currently has five research and development programs, including: dual gene therapy for curative and prevention therapies for type 2 diabetes and obesity; a Sol-gel drug delivery program; Nature IdenticalTM peptides for treatment of various ailments; non-addictive analgesic peptides as a replacement to the highly addictive analgesics such as morphine, fentanyl and oxycodone; and a therapeutic product for treating athletes who suffer from concussions (mild traumatic brain injury).
PreveCeutical sells CELLB9®, an Immune System Booster. CELLB9®is an oral solution containing polarized and potentiated essential minerals extracted from a novel peptide obtained from Caribbean Blue Scorpion venom. This product is available on PreveCeutical’s website.
For further information, please contact:
PREVECEUTICAL MEDICAL INC.
Director of Corporate Communications & Investor Relations
This news release contains forward-looking statements and forward-looking information (collectively, “forward- looking statements”) within the meaning of applicable Canadian and U.S. securities legislation, including the United States Private Securities Litigation Reform Act of 1995. All statements in this news release that are not purely historical are forward-looking statements and include statements regarding beliefs, plans, expectations and orientations regarding the future including, without limitation, the entering into of a definitive contract of sale for the CBD isolate, completion of the Transaction (and the supply of 2,500 kilograms of CBD isolate), the future growth and revenue of the Company, the ability of the Company to develop and bring its cannabis-based products to market, the efficacy of the Company’s products, matters related to the Company’s current and planned research and development programs, including the Sol-gel program, the Company’s anticipated business plans and its prospect of success in executing its proposed plans. Often, but not always, forward-looking statements can be identified by words such as “plans”, “expects”, “may”, “intends”, “anticipates”, “believes”, “proposes” or variations of such words including negative variations thereof and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved. Forward looking statements are based on certain assumptions regarding the Company, including expected growth, results of operations, performance, industry trends and growth opportunities. Actual results could also differ from those projected in any forward-looking statements due to numerous factors including, risks and uncertainties relating to the inability of the Company, to, among other things, supply sufficient quantities of CBD isolate to Crushedit to meet the terms of the contract of sale, obtain any required governmental, regulatory or stock exchange approvals, permits, consents or authorizations required, including Canadian Securities Exchange acceptance of any planned future activities, commercialise therapeutic and diagnostic technologies, execute its proposed business plans, pursue business partnerships, complete its research programs as planned and obtain the financing required to carry out its planned future activities. Other factors such as general economic, market or business conditions or changes in laws, regulations and policies affecting the healthcare and cannabis industries in Canada may also adversely affect the future results or performance of the Company. These forward-looking statements are made as of the date of this news release and, unless required by applicable law, the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in these forward-looking statements. Although the Company believes that the statements, beliefs, plans, expectations, intentions and assumptions contained in this news release are reasonable, there can be no assurance that those statements, beliefs, plans, expectations intentions or assumptions will prove to be accurate. Readers should consider all of the information set forth herein and should also refer to other periodic reports provided by the Company from time-to-time. These reports and the Company’s filings are available at www.sedar.com.
Readers are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly, are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements.