PENSACOLA, FL--(Marketwired - Dec 10, 2015) - Cannaworx, Inc., a portfolio client of GEAR International, Inc. (
"We've chosen to work with Innovative because we know their research and development is far superior to other extraction companies," said Cannaworx CEO Robert F. Calkin. "The extracts we will be creating with these machines will enable us to develop the cannabinoid-specific formulas we've been working on in bulk quantities. The doctors we are working with and their patient groups are demanding more and more products for their clinical trials."
Participating in advancing the body of knowledge centered on cannabinoids as a medicine, and producing products that are grounded in good science, the Cannaworx extract and formulation facility makes high quality medical cannabis products available to those in need and those meeting the health care needs of others.
"Cannaworx has a vast team of medical professionals who continually advance our research to help develop the resulting cannabis-based products," said Gerry L. Bedore Jr. Ph.D., MBA, Cannaworx President. "Not only does this new extraction system bring good news for our patient groups, the Cannaworx extraction operations will now be a significant revenue driver for our company's operations."
Cannaworx develops and produces high quality medicinal and health products that are tested and wholesome. It is the goal of Cannaworx to advance medical cannabis cannabinoid/terpene formulations for use in healing and comforting mankind and the animals we love.
About GEAR International, Inc.
GEAR International is a public company that offers a viable and often creative funding resource and joint venture opportunities for companies seeking unconventional funding, hard asset loans, expansion capital and/or other resources. The objective is to assist companies that are in a unique position to capitalize on a current trend or scale their operational business. By providing timely capital and other resources, the management teams of our companies can accelerate product launches, expand into new territories and often even pioneer an entire new category.
About Cannaworx, Inc.
As a resource provider, including facilities, equipment, consulting, education, product development, research and development, financing, personnel, and management of all functional areas to the cannabis and hemp industries, Cannaworx, Inc. bring decades of experience and know-how to the embryonic cannabis and hemp industries. Developing and supporting growing patient and customer needs with new awareness and breakthrough products and therapies is enabling Cannaworx, Inc. to position itself for national and global growth in the cannabis and hemp industries.
This press release contains statements which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Gear International, Inc. and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
FEDERAL LEGAL PROHIBITION: THE COMPANY INTENDS TO ENTER, DIRECTLY OR THROUGH SUBSIDIARY OR AFFILIATED BUSINESS ENTITIES, THE BUSINESS OF FUNDING RESOURCE PROVIDERS OF FACILITIES, EQUIPMENT, CONSULTING, PRODUCT DEVELOPMENT, RESEARCH, FINANCING, PERSONNEL, AND MANAGEMENT TO ENTITIES INVOLVED IN THE MANUFACTURING, PRODUCING, AND DISTRIBUTION OF A PRODUCT THAT INCLUDES MARIJUANA. MARIJUANA IS CLASSIFIED FEDERALLY AS A SCHEDULE 1 NARCOTIC. IT IS A FELONY TO DISTRIBUTE, CULTIVATE OR USE MARIJUANA. IRRESPECTIVE OF THE LAWS OF THE STATE OF ILLINOIS OR ANY OTHER STATE, THE FEDERAL GOVERNMENT COULD AT ANY TIME CHOOSE TO PROSECUTE THE COMPANY AND ITS OWNERS. ANY AND ALL INVESTORS MUST BE WILLING TO BEAR THIS EXTREME RISK OF PROSECUTION, PENALTY AND IMPRISONMENT.
Investors are cautioned that due to the Company's acquisition of the right to receive income from companies offering various services to marijuana farming operations, an investment in this Company is extraordinarily risky, involving a multiplicity of extreme risks given the conflict of laws and the potential consequences of that conflict, including very substantial legal risk of federal prosecution, penalty and imprisonment, as marijuana is still classified federally as a Schedule 1 narcotic.
It is a felony, in violation of the Controlled Substances Act, to distribute, cultivate or use marijuana; and the very comprehensive federal and international anti-money laundering statutes, including: Bank Secrecy Act (1970), Money Laundering Control Act (1986), Anti-Drug Abuse Act of 1988, Annunzio-Wylie Anti-Money Laundering Act (1992), Money Laundering Suppression Act (1994), Money Laundering and Financial Crimes Strategy Act (1998), Uniting and Strengthening America by Providing Appropriate Tools to Restrict, Intercept and Obstruct Terrorism Act of 2001 (USA Patriot Act [Title III of the USA Patriot Act is referred to as the International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001]), Intelligence Reform & Terrorism Prevention Act of 2004. At least a portion of these provisions expressly include restrictions upon the use of the banking system to transfer the proceeds of such investments, which could be viewed as money laundering.
These violations are irrespective of the laws of any state, at any time, despite its current position. The current federal guidelines are outlined in the Federal Department of Justice guidelines regarding Marijuana Related Financial Crimes dated February 14th, 2014, commonly referred to as the Cole Memorandum. And more recently, in December 2014, the U.S. House of Representatives approved H.R. 83 "Consolidated and Further Continuing Appropriations Act, 2015," defunding the federal war on medical marijuana. The provision passed the Senate and was signed by President Obama. Section 538 of the Act prohibits the use of Department of Justice funds to "prevent [states that legalized the medicinal use of marijuana] from implementing their own State laws that authorize the use, distribution, possession, or cultivation of medical marijuana."
Similarly, in July 2015 the U.S. Senate Committee voted to prohibit the US Justice Department from interfering in state medical marijuana laws. Despite these recent reversals in governmental policies, however, there remains a substantial legal risk of federal prosecution, penalty, forfeiture and imprisonment, and for a multitude of potential violations. Additionally, the cost of assuring compliance and the costs associated with otherwise normal business transactions, are substantially enhanced by these circumstances. Risks peculiar to the issuer, also include a very substantial strategic risk associated with lack of ownership and consequent lack of control over the subject property and operations, which lack of ownership and control is mandated by the laws and regulations of the jurisdiction in which the marijuana is grown. The risks also include a very substantial economic risk, including as a consequence of the foregoing recitation of other legal risks. It is just such risks that that have prevented those in the industry from securing any financing from other sources. Nonetheless, the Department of Justice could choose to prosecute the Operator and its owners, and all those who may be perceived to have aided and abetted, including the Facilitators and the Real Estate Owner. Accordingly, there remains a substantial legal risk of federal prosecution, penalty, forfeiture and imprisonment, and for a multitude of potential violations. Additionally, the cost of assuring compliance and the costs associated with otherwise normal business transactions, are substantially enhanced by these circumstances. Risks also include a very substantial strategic risk associated with lack of ownership and consequent lack of control over the subject property and operations, which lack of ownership and control is mandated by the laws and regulations of the jurisdiction in which the marijuana is grown.
The risks also include very substantial economic risks, including as a consequence of the foregoing recitation of other risks. It is just such risks that that have prevented the growers from securing any financing from other sources, over a substantial period of time. Finally, given the extraordinary return on the investment, there is even a risk of the financial arrangement being construed as a "loan," which may, at least arguably, not be exempt from applicable usury laws, even though this financial arrangement is not a loan, let alone a conventional loan, but is in the nature of risk capital financing/provision of services and real estate and that the contemplated compensation appears to be, and has been represented by the payors to be commensurate with the multiplicity and magnitude of the risks, including those as above identified."