VANCOUVER, British Columbia, June 11, 2019 (GLOBE NEWSWIRE) -- BOUGAINVILLE VENTURES INC. ("Bougainville" or the "Company") (CSE:BOG) is pleased to announce that it has signed a letter of intent (LOI) to provide funding and to acquire 100% of the assets and inventory of Island Biopharma Inc.(Biopharma). Biopharma has developed a dedicated line of Cannabidiols (“CBD”) products which a include proprietary CBD blended tincture product with three specific recipes for anxiety, energy and sleep.
LOI Terms
Subject to Board approval from the Company and completion of satisfactory due diligence, the parties intend to enter into a definitive agreement on or before June 30, 2019. The Company will acquire 100% of Biopharma assets and current inventory. The consideration is to be payable in such number of common shares in its share capital ("Consideration Shares") at a per share price equal to the volume weighted average price of such shares on the Canadian Securities Exchange over a 15-day period ending on the day such Consideration Shares are required to be issued ("15 day VWAP"). In addition, Biopharma will contribute operational expertise, exclusive licenses for products marketed in North America supported by an intellectual property licensing agreement, and exclusivity for all current and future technology for oil extraction in North America. The final evaluation will be determined by an independent third party evaluator, which is currently in progress.
Assets include:
About Island Biopharma Inc.
Biopharma possesses a CBD blended tincture product with three specific recipes for anxiety, energy and sleep. The philosophy of Biopharma is to create products using the highest quality of bio-active ingredients, and oil extraction methods that preserve the essence of the cannabis plant. Biopharma has studied plant genetics for their therapeutic effects by incorporating modern research techniques and by analyzing the healing and therapeutic benefits of each strain giving the company a huge range of combinations and therapeutic benefits for specific ailments.
According to an estimate from cannabis industry analysts the hemp-CBD market alone could hit $22 billion by 2022. CBD can be used to effectively treat epilepsy, anxiety, insomnia and chronic pain. The Island Biopharma CBD line is designed to harness the healing power of cannabis without the psychotropic effects of tetrahydrocannabinol (“THC”).
CEO, Andy Jagpal Comments:
“This marks an exciting step forward for our brand's expansion into multiple CBD products. The acquisition of Island Biopharma will contribute greatly to our future product lines. With the development of our CBD infused energy drink already in development this acquisition will complement our goal of producing high quality proven cannabaniod products. This is in-line with the anticipated launch of the Canadian cannabis legislation bringing about the legalization of the edible market slated for the fall of 2019”.
WORMCASTING TRANSACTION FINANCING UPDATE
Further to the Form 45-102F1 Notice of Intention to Distribute Securities filed May 22, 2019 and associated news release dated May 24, 2019 the Company announces that management has sold a total of 1,000,000 shares of (BOG:CSE) with proceeds of $CAD100,000. These proceeds have been contributed towards the final outstanding payment of $USD120,000 owed to Worm Castings pursuant to Bougainville’s obligation under the Worm Castings Transaction announced in the Company’s news release dated May 23, 2019. Management continues to defer salaries as it has for the past two years to help conserve working capital to enable the company to reach its milestones.
About Bougainville Ventures, Inc.
Bougainville Ventures Inc. is dedicated to rapid growth in production, processing, retail and branding of cannabis and cannabis related products. Currently the company provides strategic capital to the thriving cannabis cultivation sector through ownership and development of commercial real estate properties. We offer fully built out turnkey facilities equipped with state-of-the-art growing infrastructure to cannabis growers and processors. Also, the Company is focused on building a strong presence in the hemp industry with the objective of extracting cannabinoids (CBD & CBN) in both Canada and the United States. With our flagship Hemp project in Oregon State the Company has proprietary, patent-pending hemp root oil extraction technology and formulas for cannabis topicals and tinctures.
On behalf of the Board of Directors
BOUGAINVILLE VENTURES INC.
Andy Jagpal, CEO and Director
For further information, please contact Andy Jagpal at andy@bougainville.com or 1-844-734-8420
FORWARD LOOKING STATEMENTS: This news release contains certain forward-looking statements within the meaning of Canadian securities laws. Forward-looking statements are based on the expectations and opinions of the Company’s management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
No regulatory authority has approved or disapproved the information contained in this news release.