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TORONTO, Oct. 29, 2019 (GLOBE NEWSWIRE) -- AIM3 Ventures Inc. (TSXV:AIMC.P) (“AIM3”) and Southern Sun Pharma Inc. (the “Company”) are pleased to provide an update on both the operational progress made by the Company as well as a status update relating to the reverse take-over of AIM3 by the Company (the “Proposed Transaction”) as announced  on January 21, 2019 pursuant to a letter of intent dated January 21, 2019, as amended (the “LOI”).

Proposed Transaction Update

The Company, supported by its capital market advisors, Bayline Capital Partners and legal team, have made progress in advancing the Proposed Transaction. On October 29, 2019, the Company and AIM3 entered into a second supplement to the LOI whereby the parties agreed to extend the timeline for: (a) submission of all required materials to the TSX Venture Exchange in relation to the Proposed Transaction; and (b) being receipted for the final prospectus to be filed in connection with the Proposed Transaction, to March 31, 2020, failing which, AIM3 will have the right to terminate the LOI and the Company will be liable to AIM3 for the payment of a penalty fee in the amount of CAD$125,000.

Corporate Update

Following the close of the Company’s non-brokered private placement of shares for aggregate gross proceeds of $6.35 million in the first half of 2019, the Company has continued to reinforce its position as a leading vertically integrated cannabis business in the Southern African region.

The Company is proud to provide the following update.

Name Change

The Company intends to call a shareholders meeting in due course to approve a change of name to “Southern Sky Holdings Ltd.”, to reflect South Africa’s cultivation roots in the country’s Transkei region.

Retail

Under the guidance of Jonathan Katz, Head of Brand and Retail, the Company has assembled a talented team of twenty retail professionals resulting in a line up of in-house CBD products including tinctures, topicals and vape pens. The Company’s products are manufactured by leading outsourced GMP compliant manufacturers who provide formulation, registration, blending, fill, lab and stability testing and packing.

The Company has developed and presold the first run of a range of four CBD infused water variants, each flavoured with a unique African botanical, and is the first CBD beverage being sold in South Africa. In advance of this launch, the Company entered into a number of distribution agreements, which is expected to see the products in at least 200 top-end outlets by year end.

The Company has pursued both a physical store and online distribution model. Its first premium CBD wellness store, operating as “Goodleaf” (www.goodleaf.co.za), was opened within a week of legalization of CBD in South Africa at the end of May 2019. Four additional Goodleaf stores are planned to be opened by year end.

Africanpure (www.africanpure.co), the Company’s everyday CBD brand, continues to develop into one of South Africa’s leading CBD brands with strong growth in online sales as well as the number of retailers listing the product range.

In order to accelerate the expansion of its retail footprint, the Company acquired 51% of Evolution Vape (Pty) Ltd (www.evolutionvape.co.za), a leading retailer of tobacco Vape products. Evolution Vape brings a strong management team and a national retail footprint of fifteen outlets. The Company sees significant value in driving its CBD products and custom CBD vape pens through this channel. All vape pens are purchased from CCELL® and filled in a licensed GMP facility with full certificates of analysis.

Licences

a. Full Medical Licence Application for Import, Export and Processing

The Company has successfully completed its second site inspection from SAHPRA (South African Health Products Regulatory Authority) and believes progress is being made toward a licence grant.

b. 20 ha Research Licence

The Company has entered into an agreement to acquire a 51% stake in a permit (issued under section 22(9)(a)(i) of the Medicines and Related Substances Act) to possess and cultivate cannabis sativa for research purposes, which will allow the Company to develop commercially viable medicinal cannabis products in South Africa. The site is 20 hectares, all of which is under licence and the Company is in the process of initiating the first 4 hectares of outdoor cultivation.

c. Lesotho License

On its Lesotho license, the Company has conducted the required electrical and water surveys and commenced with boreholes and fencing. The longer-term plan is to build out production up to Good Agricultural and Collecting Practice. A cultivation team to oversee the build out is currently being assembled.

Extraction and Processing

The Company has entered into an exclusive license with AxiommTechnologies, a Canadian leading edibles technology company, to manufacture products incorporating the Axiomm Technology across Africa. Axiomm is a patent-pending technology that solves the technical challenges of edible and drinkable cannabis products, by reducing onset time and improving bioavailability and solubility. This agreement enables the Company to develop and manufacture next-generation hemp and cannabis products.

If you have any queries regarding this press release, please contact:

About AIM3 Ventures

AIM3 was incorporated under the Business Corporations Act (Ontario) and is a Capital Pool Company (as defined in the policies of the TSX Venture Exchange (the “TSXV”)) listed on the TSXV. AIM3 has no commercial operations and no assets other than cash.

The Company

The Company, a Canadian registered company, is a multi-license holder with a dedicated focus on Africa. The Company was formed by experienced entrepreneurs with a proven track record of building significant shareholder value, both in Africa and North America. The Company is focused on significantly lower cost production opportunities in Africa to support its plan to distribute and supply both the local cannabis and export markets with a focus on establishing production in countries in near proximity to its headquarters in South Africa.

The Company is also establishing a retail footprint and uniquely African brand and product line. This includes both the rollout of their own stores as well as through partnerships and joint ventures with major retailers and beverage distributors. The brand and retail arm of the Company is overseen by a team of veteran South African retailers who have been successful at building brands from inception into major retail chains.

www.goodleaf.co.za

The Company is proud to be the lead sponsor for the inaugural African Cannatech conference (https://www.canna-tech.co/capetown/) to be held in Cape Town on November 24th to 26th.

Cautionary Note Regarding Forward-Looking Information

This press release contains statements which constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the management of the Company with respect to future business activities. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions and include information regarding: (i) the ability of the Company to successfully achieve its business objectives, including establishing low cost production, (ii) plans for expansion of the Company, (iii) expectations for other economic, business, and/or competitive factors, (iv) the likelihood around obtaining additional licenses, and (v) the Company’s brand and retail strategy.

Investors are cautioned that forward-looking information is not based on historical facts but instead reflect the management of the Company’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: changes in general economic, business and political conditions, including changes in the financial markets; the ability of the Company to raise debt and equity capital in the amounts and at the costs that it expects; adverse changes in the public perception of cannabis; decreases in the prevailing prices for cannabis and cannabis products in the markets that the Company operates in; adverse changes in applicable laws; or adverse changes in the application or enforcement of current laws, including those related to taxation; the inability to locate and acquire suitable companies, properties and assets necessary to execute on the Company’s business plans; and increasing costs of compliance with extensive government regulation.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.