09:45:16 EDT Thu 28 Mar 2024
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Alternate Health begins trading, enters cannabidiol JV

2017-01-24 09:57 ET - News Release

Mr. Jim Griffiths reports

ALTERNATE HEALTH CORP. ENTERS INTO JOINT VENTURE AND CONSULTING AGREEMENTS

Alternate Health Corp.'s common shares commenced trading today on the Canadian Securities Exchange under the symbol AHG.

Joint venture agreement with Alturas Indian Rancheria

The company has also entered into an agreement with Alturas Indian Rancheria to form a joint venture company, where ownership in the venture will be 55 per cent Alturas and 45 per cent Alternate Health. The agreement provides that Alturas and Alternate Health, or its subsidiary, enter into a 30-year land lease (including all buildings) on a 10-acre site, owned by Alturus. A new cannabidiol testing and research facility is intended to be constructed on this land, with a focus on furthering research and development in the use of cannabidiol for medical and therapeutic treatments. California is the world's largest medical marijuana market and will soon open the market for recreational sales this year, with this agreement expected to strongly position Alternate Health to become a market leader.

Alternate Health will issue 1.5 million common shares to Alturas upon closing of the transaction, with a potential additional 1.5 million common shares of the company to be issued at a future date, for the expansion of the business, subject to approvals by both parties. The agreement further provides that Alternate Health annually grant warrants to Alturus to purchase 100,000 common shares of the company for each year the joint venture is in operation, which is estimated to be 30 years. Each warrant grant will expire one year from the date of the grant, and the warrant exercise price will be set in accordance with the CSE polices and securities regulations.

Consulting agreement

The company has entered into a consulting agreement with a U.S.-based consultant effective Jan. 23, 2017, for the purposes of delivering hospital relationships for the company's business objectives. Pursuant to the terms of the consulting agreement, the company will issue 250,000 common shares, which will be subject to escrow. The release of the escrowed shares will be subject to certain performance conditions.

We seek Safe Harbor.

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