Dr. Lui Franciosi reports
VERITAS COMPLETES SHARE PURCHASE AGREEMENT WITH 3 CARBON EXTRACTIONS INC.
Veritas Pharma Inc. has completed the share purchase agreement to acquire 50 per cent of the issued and outstanding shares of 3 Carbon Extractions Inc.
Under the terms of the agreement as previously announced on
April 16, 2018, Veritas has invested $300,000 (U.S.) into 3 Carbon and issued 1.5 million common shares of Veritas at a deemed price of 40 cents per share to the shareholders of 3 Carbon. The cash consideration will be used to build a scalable extraction facility at a location to be determined by the board of Veritas.
Also, under this agreement, Veritas has the option to purchase the remaining 50 per cent of the issued and outstanding shares of 3 Carbon from its shareholders, at a price determined by a qualified business valuator after three years of operation from this date. A bonus of two million common shares of Veritas will be issued to the 3 Carbon shareholders at that time.
Veritas will carry on the business of evaluating the medical benefits of cannabis and licensing its intellectual property to third parties, conducting analytic and biological tests for third parties, by building and/or acquiring cannabis growing operations, by selling and managing cannabis oil production equipment, and by producing cannabis for resale.
3 Carbon will work with Veritas on business development along with third party companies, such as ExtractionTek Solutions Inc., located in Colorado, United States, which will enhance both the value of 3 Carbon and assist Veritas in its effort to produce cannabis for resale or for third parties.
Veritas Pharma chief executive officer, Dr. Lui Franciosi, stated: "With the completion of this purchase agreement, 3 Carbon will add additional shareholder value with its proprietary technology. The board and I are excited to have the expertise of 3 Carbon's founder, Philip Kwong, within our group of companies. His knowledge of cannabis extraction alongside Veritas's research and development of new cannabis-based treatments will further address the unmet needs in pain management, as well as seniors/palliative care."
The company also announces the issuance of two million stock options at 23 cents to directors, management and consultants of the company for a term of 12 months.
About Veritas Pharma Inc.
Veritas Pharma is an emerging pharmaceutical and IP development company, which, through its 100-per-cent-owned subsidiary Cannevert Therapeutics Ltd. (CTL), is advancing the science behind medical cannabis. It is the company's aim, through its investment in CTL, to develop the most effective cannabis strains (cultivars) specific to pain, nausea, epilepsy and PTSD (posttraumatic stress disorder), solving the critical need for clinical data to support medical marijuana claims. CTL's unique value proposition uses a low-cost research and development model to help drive shareholder value and speed to market. The company's commercial mission is to patent protect IP (cultivars and strains) and sell or license to cancer clinics, insurance industry and pharma, targeting multibillion-dollar markets according to Deloitte's Insights and Opportunities.
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