Atlas Biotechnologies Inc. makes Strategic Investment acquiring 20% of Leading Oncology Biotech Research Firm


EDMONTON, Alberta, Nov. 06, 2018 (GLOBE NEWSWIRE) -- Atlas Biotechnologies Inc. (“Atlas”) is pleased to announce closing of a 20% strategic investment in Flavocure Biotech, Inc. (“Flavocure”), in exchange for $7.5 million (USD $5.75 million). Flavocure has developed an impressive pipeline of oncology research, with patent pending status on two therapeutic molecules which use cannabis flavonoid derivatives in the treatment of three aggressive forms of cancer - AML (Acute Myeloid Leukemia), pancreatic, and glioblastoma (brain) cancer.

Maryland, USA based Flavocure aims to be a leader in the transformation of the medicinal properties of natural products into new cures for mankind. This investment by Atlas is in line with its goal to be a global leader in the development of proven pharmaceutical drugs, derived from cannabis for medicinal use.

Flavocure is collaborating with some of the world’s most prestigious cancer research institutions and has discovered ground-breaking cannabis derived molecules with preliminary data indicating activity against therapeutically validated kinase mutation targets.  One of Flavocure’s two proposed therapeutics, Cresorol, has been approved by the United States Food and Drug Administration (“FDA”) with an orphan-drug designation, which, following planned short-term toxicology studies, is anticipated to permit fast-tracking of advancement to Phase 1 and subsequent studies.  Flavocure is also undertaking the development of a new drug for the treatment of both pancreatic cancer and glioblastoma. 

Atlas plans to develop a breeding program dedicated to isolating additional molecules in the flavonoid spectrum and identifying further cannabinoids for potential research and supply for future drug commercialization.

“Flavocure is an excellent fit for Atlas Biotechnologies, as our business philosophy is built around curing disease and illness using cannabis derivatives. Their FDA orphan drug designation for the treatment of Acute Myeloid Leukemia, combined with their attractive oncology pipeline, made them an obvious choice for collaboration with Atlas.  We intend to jointly develop specialized cannabis cultivars to further unlock the potential of targeted flavonoids in medical research,” said Sheldon Croome, Atlas CEO.

Atlas will hold a 20% interest in Flavocure, which expects to soon undertake a new equity financing, which combined with expected research grant funding in 2019, will be used to accelerate research efforts on their current three target cancers.

Dr. Henry Lowe, an industry pioneer of cannabis phytopharmaceuticals and Flavocure’s founder and Executive Chairman, added, “Our early success in finding cannabis derived molecules for new therapeutic cancer discoveries attracted the interest of a great partner in Atlas. We are very much looking forward to collaborating with them on our genetics program and other drug research programs in the field.” 

The Atlas 20% investment in Flavocure is in the form of USD $500,000 cash, and the issuance of Atlas common shares at a value of $6 CAD per share.

As part of the integral future collaboration, Atlas will hold one seat on Flavocure’s initial 7-member Board of Directors – Jeffrey R. Gossain, P. Eng, VP of Operations and one of Atlas’ founding Directors, who will aid in the development of the operational and corporate structure at Flavocure.

About Atlas Biotechnologies Inc. and Atlas Growers Ltd.

Atlas is based in Edmonton, Alberta, Canada and its’ wholly owned subsidiary, Atlas Growers Ltd., is federally licensed for Cultivation and Production of medical cannabis products. Atlas currently has a purpose-built, 38,000 square foot laboratory where it can produce over 5,000 kg of dried cannabis annually as well as refine cannabis into isolated concentrates in mass capacity. Further, Atlas Growers’ owns a 160-acre site that could allow for significant future expansion of cultivation capacity in Alberta, with a development permit in place for up to 1,000,000 square feet of additional construction. Atlas also owns 50% of Coastline Canada Inc., a late stage applicant with Health Canada that is anticipated to be licensed for cultivation on Vancouver Island in late 2019.

Atlas is well financed, raising over $25.6 million in equity to date, including $7.6 million related to acquisition of land and strategic investments, and also has available for future use a largely unutilized $6.25 million bank term loan facility.

About Flavocure Biotech Inc.

Flavocure Biotech, Inc. (FBINC) is a private corporation based in Maryland, USA. FBINC aims to be a leader in the transformation of the medicinal properties of natural products into new cures for mankind. The company has focused on the identification of non-cannabinoid bioactive phytochemical properties of Cannabis. The company, in collaboration with some of the most prestigious research institutions in the world, have discovered ground-breaking cannabis derived molecules and generated preliminary data indicating activity against therapeutically validated kinase mutation targets.  This has led to the company’s success in achieving FDA Orphan Drug designation for their first drug, Creserol™ for the treatment of Acute Myeloid Leukemia (“AML”).   The company is committed to combating this disease, along with Pancreatic cancer and Glioblastoma (an aggressive form of brain cancer).

Forward-Looking Information

This news release may contain “forward looking information” and “forward-looking statements” within the meaning of applicable Canadian securities legislation. All information contained herein that is not historical in nature may constitute forward-looking information.  When used in this document, words such as “intends”, “plans”, “anticipates”, “expects” and “scheduled”, are forward-looking statements. Forward-looking statements are subject to a wide range of business, market and economic risks and uncertainties, and although Atlas believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized.  Any number of factors can cause actual results to differ materially from those in the forward-looking statements.  Except as required by law, Atlas disclaims any obligation to update or revise any forward-looking statements.  Readers are cautioned not to put undue reliance on these forward-looking statements.

For further information, please contact:

Jeffrey R. Gossain, P. Eng.
Vice President of Operations
Phone: 780-784-5920

Graeme Dick, BMgmt
Colwell Capital Corp.

Dean Stuart