TORONTO, ONTARIO--(Marketwired - March 7, 2017) - Canada House Wellness Group Inc. ("Canada House") or the ("Company") (CSE:CHV)(CSE:CHV.CN) is pleased to provide an update on its patient initiatives and expansion plans, along with a corporate update.
Patient Initiatives and Expansion
Canada House continues to grow the patient base which it supports with cannabis education and resources. Over the past two months it has developed and streamlined its organizational and administrative processes to keep up with the ongoing demand for quality medical management supporting cannabinoid therapy. These new efficiencies are expected to provide the Company with greater controls resulting in new levels of conversion and retention, thereby increasing revenue.
As Canada House continues along its trajectory of expansion and penetration internal to the medical marijuana marketplace, it has also identified high value revenue channels supplying medical goods and services to the cannabis patient population.
As a result, the Company has begun focusing on growing its clinical division in strategic partnerships with existing clinic networks, in addition to operating its own full spectrum wellness centres and total health clinics.
The underlying premise is that ancillary to cannabis therapy and in support of a patient's health, there are often both physical and non-physical therapies which work in conjunction with cannabinoids for better health outcomes, safety and efficacy.
Canada House has already begun the provision of these products and services both to its Veteran and non-Veteran patients with a robust multi-disciplinary approach, delivered and managed to a high medical standard.
The Company continues to work towards the revenue targets it has set out for the coming periods.
Settlement of Debt
Canada House is also pleased to announce that it has settled certain outstanding debts by the issuance of 753,759 common shares of the Company at a weighted average price of $0.56 per common share. These common shares will be subject to a 4 month trading restriction where applicable. Management expects the settlement of such debts to improve the Company's working capital and liquidity ratios.
Approximately $210,447 of the debt being settled through the issuance of the common shares is owed to a director of a subsidiary of the Company (the "Insider Issuance"). The Insider Issuance constitutes a "related party transaction" under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Insider Issuance was unanimously approved by the disinterested members of the Company's board of directors. The Company is relying on Section 5.5(a) of MI 61-101 for an exemption from the formal valuation requirement and Section 5.7(1)(a) of MI 61-101 for an exemption from the minority shareholder approval requirement.
Strong Second Quarter Revenue
The Company continues to reduce costs, and the Company expects to report revenues of approximately $1.5 million for the three months ending January 31, 2017, the first full quarter following the closing of its acquisition of Marijuana for Trauma and The Longevity Project Corp. and re-listing on the CSE. Interim unaudited financial results for the three months ending January 31, 2017 will be released in March 2017. The information contained herein may change based on final results.
The Company continues to advance in Health Canada's Access to Cannabis for Medical Purposes Regulations ("ACMPR") licensing process for its proposed facility in Pickering, Ontario. The Company will maintain contact with Health Canada to move forward its ACMPR license application as expeditiously as possible.
Canada House Wellness Inc.
Canada House is the parent company of Marijuana for Trauma, The Longevity Project Corp., and Abba Medix Corp. The Company's goal is to become a marketplace leader through strategic partnerships, mergers, and acquisitions to create a fully integrated medical marijuana marketplace. For more information please visit www.abbamedix.com, www.mftgroup.ca and www.plantsnotpills.ca.
Cautionary Statements Regarding Forward-Looking Information
Certain statements within this press release relating to the Company constitute "forward-looking statements", within the meaning of applicable securities laws, including without limitation, statements regarding future estimates, business plans and/or objectives, sales programs, forecasts and projections, assumptions, expectations, and/or beliefs of future performance, are "forward-looking statements". Such "forward-looking statements" involve known and unknown risks and uncertainties that could cause actual and future events to differ materially from those anticipated in such statements. Forward-looking statements include, but are not limited to timeliness of government approvals for the granting of permits and licenses, changes in medical marijuana prices, actual operating performance of facilities, competition and other risks affecting the Company in particular and the medical cannabis industry generally, certain of which are more particularly described in the Company's public disclosure at www.sedar.com. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law. Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.