Mr. Brad Eckenweiler reports
LIFESTYLE DELIVERY SYSTEMS ANNOUNCES LETTER OF INTENT WITH NATIONAL GREEN BIOMED LTD. TO ESTABLISH A MANUFACTURING FACILITY IN MISSION, BRITISH COLUMBIA, CANADA
Lifestyle Delivery Systems Inc. has signed a letter of intent with National Green Biomed Ltd. (NGB) to manufacture CannaStrips in Mission, B.C., Canada. The letter of intent replaces and supersedes the memorandum of understanding the company announced on Feb. 27, 2019, and solidifies the intentions of both parties to continue to work toward the entry into a definitive agreement for joint venture to build a manufacturing facility in British Columbia to produce CannaStrips.
Under the terms outlined in the letter of intent, the joint venture will build a manufacturing facility in Mission, B.C., Canada, to produce CannaStrips. NGB will provide an extension of its Rosebud Health Canada licence to the joint venture and land for the new facility to manufacture CannaStrips; the company will invest a total of $255,000 in a private placement for shares of common stock of NGB at 30 cents per share. The private placement will be completed in three tranches as follows:
The first payment of $75,000 will be made upon signing a definitive agreement.
The second payment of $75,000 will be made 90 days after the definitive agreement becomes effective.
The third obligation of $105,000 will be satisfied with the exercising of a 30-cent warrant per share upon issuance of a licence from Health Canada.
In addition to the funds invested as part of the private placement, Lifestyle Delivery Systems will be responsible for paying for the permits, design and buildout of the facility and will share the consulting expenses associated with the Health Canada licensing. NGB will receive a royalty on all sales from the Mission facility, specifically, a 5-per-cent royalty for sales in Canada and a 3-per-cent royalty on all sales outside of Canada. The Mission facility will be required to purchase raw material from NGB and provide custom processing for future products or business opportunities presented by NGB.
NGB also agrees to sell a 50-per-cent stake in one of its 25-acre parcels to Lifestyle Delivery Systems for $375,000. Lifestyle Delivery Systems will be able to build its facility on up to two acres of this parcel. NGB will retain the right to choose uses for the balance of the 23 acres but will work closely with Lifestyle Delivery Systems to find uses suitable and profitable for both parties. These uses may include, but will not be limited to, the growing of cannabis for use as feedstock for the Lifestyle Delivery Systems facility, which will be then sold to Lifestyle Delivery Systems at a discounted price to what the general market bears.
Brad Eckenweiler, chief executive officer of Lifestyle Delivery Systems, commented: "The establishment of a Canadian CannaStrips manufacturing and distribution facility has been a goal of the company for some time. Our agreement with NGB has put the company on a path to accomplish this goal in 2019. Hopefully, with this agreement and favourable legislation in the near future, CannaStrips can be shipped around the globe. I don't believe there is another delivery system better suited to overcoming the challenges of the social perception associated with traditional cannabis consumption and the concerns of unintended sharing of cannabinoids with others nearby. The discreet and inoffensive nature of CannaStrips is an alternative for a new market of customers looking for a stealth experience. It is also the most affordable cannabis product available."
The company will keep its shareholders apprised of the company's progress on this project.
About Lifestyle Delivery Systems Inc.
Lifestyle Delivery Systems is a technology company that licenses its technology to a state-of-the-art production and packaging facility located in Southern California. The company's technology produces infused strips (similar to breath strips) that are not only a safer, healthier option to any other form of delivery, but also allows for inclusion of a wide spectrum of ingredients from over-the-counter medications to homeopathic, nutraceutical, vitamins and supplements. The technology provides a new way to accurately meter the dosage and assure the purity of selected product. From start to finish, the production process, based on the company's technology, tests for quality and composition of all the ingredients used in each and every strip, resulting in a delivery system that is safe, consistent and effective.
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