CBDX) provides updates on the progress of operations on psychedelics
Toronto, Ontario – October 6, 2021 (Newsfile Corp.) (Investorideas.com Newswire) Canbud Distribution Corp. (CSE: CBDX) (FSE: CD0) (the “Company” or “Canbud”) Management wishes to provide the following update on the development of Jamaican operations.
On December 7, 2020, Canbud announced that it had entered into a definitive agreement dated December 4, 2020 to acquire 100% of the issued and outstanding securities of 2688453 Ontario Ltd. in exchange for 7,600,000 ordinary shares at an assumed price per share equal to 19.5 cents.
As part of the agreement, the Company issued 1,520,000 shares (representing 20% of the counterpart shares) on January 5, 2021. The agreement provided for a significant capital investment (greater than US $ 3.5 million) by the Company, over a three-year period, to build and operate a commercial production supported by local staff and establish a retreat facility.
During the following period, the company completed the manufacture and installation of the initial production facility in Jamaica at a cost of US $ 49,000 and entered into a memorandum of understanding with the College of Agriculture, Science and Education (“CASE”) to focus on the research and development of healing practices facilitated by psilocybin-producing fungi.
Following a review process undertaken by management and approved by the Board of Directors, the Company has determined that the current and expected commercial state of the psychedelic market over the 18 to 24 month period will continue. to remain slow and that the anticipated economic benefits of Canbud’s commercialization plan are not – conducive to continued financial commitment for the project at this time, other than the research and development project which requires a financial commitment of up to CA $ 10,000 over the next 12 months. As a result, Canbud and 2688453 Ontario Ltd. agreed to a mutual termination of the “deal” entered into on December 4, 2020, whereby the Company agreed to issue 3,040,000 common shares to cancel the agreement (at a deemed price per share equal to 0 , $ 05 or a total price of CA $ 152,000). The shares to be issued under the termination agreement will remain escrowed and released in 3 different installments during 2022.
Canbud continues to monitor potential opportunities in the psychedelics market, in line with its continued commitment to research and development at this time. The facility is currently at the site assigned by CASE, with facility management under the responsibility of research at CASE. The Company expects a more focused and cautious approach from a capital allocation perspective, which will enable it to support high growth areas of the business.
About Canbud Distribution Corp.
Canbud is a health and wellness science and technology company operating in the psychedelic pharmaceuticals and non-psychedelic nutraceuticals and hemp cannabinoids (CBD) verticals.
Notice regarding forward-looking information
The information contained in this press release includes certain information and statements about management’s view of future events, expectations, plans and prospects that constitute forward-looking statements. The forward-looking statements contained in this press release include, without limitation, the business of the Company and the industry and markets in which it operates. These statements are based on assumptions that are subject to significant risks and uncertainties, including assumptions regarding the business, financial condition and future performance of the Company. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be inaccurate, and the forward-looking statements contained in this press release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in these forward-looking statements. Although the management of the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee that the expectations of any forward-looking statement will prove to be correct. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting these forward-looking statements or others.
For more information, please contact:
Robert Tjandra, COO,
Email: [email protected]
NOT FOR DISTRIBUTION TO US WIRE SERVICES OR FOR DISTRIBUTION IN THE UNITED STATES.
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