OTTAWA, ONTARIO--(Marketwired - Nov. 6, 2015) - GrowPros Cannabis Ventures Inc. ("GrowPros" or the "Company") (CSE:GCI) is providing shareholders with the following clarification of the execution and subsequent sale of the Export Hydro LOI to Cannabis Accelerators LTD. ("CAL") as originally stated in its July 23 press release.
On March 5, 2015, GrowPros entered into a letter of intent ("LOI") with Export Hydro, a manufacturer and exporter of indoor gardening equipment based in Hong Kong. Export Hydro designs, manufactures, and distributes growing equipment specifically for the medicinal cannabis market. Export Hydro's manufacture direct model allows them to distribute directly to retailers, wholesalers, and commercial producers in North America, Europe, and Australia.
Pursuant to the letter of intent, GrowPros may acquire 100% of outstanding shares for USD$1,000,000 and provide on-going capital and strategic support as Export Hydro expands their operations to focus on providing equipment and supplies to large-scale commercial production facilities in Canada and the United states.
On July 16, 2015, GrowPros entered into an assignment agreement with CAL, to sell the rights to its previously executed LOI with Export Hydro as well as assist CAL in finalizing a definitive agreement with Export Hydro for $250,000 and 1,000,000 options to purchase shares of CAL at an exercise price of $0.20. CAL is required to pay GrowPros $50,000 within 90 days of the assignment of the LOI, and the balance within 120 days.
In the original press release issued by GrowPros on July 23, 2015, the Company announced that in regards to the above transaction, the Company stated that "structuring the transaction as we have provides GrowPros with short term and medium term revenue". Management of GrowPros would like to clarify that this transaction does not provide the Company with "revenue" as previously disclosed but rather "proceeds" from the sale of LOI.
Under the terms of the agreement CAL has assumed all of the obligations under the LOI. CAL is currently in the process of being acquired by an Australian based company in the process of completing an IPO on the ASX exchange within 180 days. Once the IPO is complete the options granted to GrowPros will be re-issued such that the Company will be able to acquire shares of the Australian public company.
On October 1, 2015, GrowPros received the first instalment payment from CAL.
As at November 5, 2015, CAL has currently entered into a binding letter of intent with Export Hydro as both parties work to complete a definitive agreement. CAL is continuing the process of completing its IPO and listing on the ASX.
The Canadian Securities Exchange (CSE) has not reviewed this news release and does not accept responsibility for its adequacy or accuracy.
Forward-looking statements
Some statements in this release may contain forward-looking information. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding potential acquisitions and financings) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words "may", "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, the inability of the Company, through its wholly-owned subsidiary, GrowPros MMP Inc., to obtain a licence for the production of medical marijuana; failure to obtain sufficient financing to execute the Company's business plan; competition; regulation and anticipated and unanticipated costs and delays, and other risks disclosed in the Company's public disclosure record on file with the relevant securities regulatory authorities. Although the Company has attempted to identify important factors that could cause actual results or events to differ materially from those described in forward-looking statements, there may be other factors that cause results or events not to be as anticipated, estimated or intended. Readers should not place undue reliance on forward-looking statements. The forward-looking statements included in this news release are made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.
Contact Information:
Ryan Brown
Chief Executive Officer
(613) 421-8402