LiveWell Canada Signs Binding Term Sheet To Supply Hemp-Derived CBD To Tilray
OTTAWA, ONTARIO, DECEMBER 17, 2018, /CNW Telbec/ – LiveWell Canada Inc. (“LiveWell” or the “Company“), (CSE: LVWL), is pleased to announce that it has signed a binding term sheet to supply Tilray Inc. (NASDAQ: TLRY) with hemp-derived CBD isolate in North America.
Under the terms of the agreement, and subject to the governing laws of the local jurisdictions (possession, sale and distribution), LiveWell will supply Tilray a minimum of 150 kilograms per month of wholesale CBD isolate cultivated and processed from hemp commencing in February 2019, through to July 2019. The amount then increases to a minimum of 300 kg/month for the remainder of the contract, until December 2019. Tilray has the option to increase the amount of CBD supply purchased to 500 kg/month, and there is an additional 12-month renewable option.
The deal follows the ending of hemp prohibition in the United States. On December 12, 2018, the U.S. Agricultural Improvement Act of 2018, also known as the 2018 Farm Bill, was passed by U.S. Congress. The 2018 Farm Bill legalizes hemp and removes it from the Controlled Substances Act (CSA). CBD and other cannabinoid products extracted from hemp are also removed from the CSA. The bill must still be signed by President Trump, who has signalled support.
“We are pleased to have a strong partner such as Tilray in this emerging market,” said David Rendimonti, President and CEO of LiveWell Canada. “With the legal barriers lifting, we believe the market for hemp CBD could exceed all forecasts because of the huge shift to self-directed care and wellness among consumers.”
LiveWell is an innovative Canadian hemp and cannabis company focused on advanced research on CBD and other cannabinoids, as well as developing, marketing and distributing consumer health and wellness products.
As announced on December 3, 2018, LiveWell has signed a binding letter of agreement to merge with Vitality CBD Natural Health Products Inc. (the “Merger”), one of the largest industrial hemp cultivation and extraction operations in North America, with approximately 20,000 acres harvested in 2018. The Merger will bring together U.S. and Canadian assets to create one of the first fully integrated CBD companies with production capacity of CBD isolate anticipated to reach 3,000 kilograms per day by mid-2019; research, product development and GMP manufacturing facilities; international sales and distribution networks; and experienced leadership.
Tilray is a global pioneer in the research, cultivation, production and distribution of cannabis and cannabinoids currently serving tens of thousands of patients in twelve countries spanning five continents.
Cautionary Note Regarding Forward-Looking Statements
This release includes forward-looking statements about the Company and its business. Often, but not always, forward-looking statements can be identified by the use of words such as “plan”, “continue”, “expect”, “schedule”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements (including negative variations) that certain events or conditions “may” or “will” occur. Such statements are based on the current expectations of management. The forward-looking events and circumstances discussed in this release may not occur by certain specified dates or at all and could differ materially as a result of unknown and known risk factors and uncertainties affecting the Company. Further, the Company cautions that this foregoing list of material factors is not exhaustive, and readers are encouraged to read all Risk Factors disclosed in the Company’s Management Discussion & Analysis dated October 26, 2018.
In respect of the forward-looking statements and information concerning the Tilray binding term sheet, the potential global CBD market, anticipated benefits and completion of the Merger, including the anticipated timing for completing the definitive agreement, the Company has provided such statements and information in reliance on certain assumptions that it believes are reasonable at this time. Further, there can be no assurance that the Merger will occur, or that it will occur on the terms and conditions contemplated in the binding letter of agreement. Following the due diligence, the Merger could be modified, restructured or terminated.
The forward-looking information contained in this press release represents expectations of the Company as of the date of this press release and accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, it does not undertake to update this information at any particular time except as required in accordance with applicable securities laws.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
SOURCE LiveWell Canada Inc.
For more information, visit livewellcorp.com
English – Deborah Stokes, 819 576-3789 – [email protected]
French – Dorra Jemail, 819 718-2042 [email protected]
Nicole Marchand – 416-428-3533 – [email protected]
David Rendimonti, President and CEO
Steven Archambault, Chief Financial Officer