VANCOUVER, British Columbia, May 29, 2019 /PRNewswire/ -- Lifestyle Delivery Systems Inc. (CSE: LDS), (OTCQX: LDSYF), (Frankfurt: LD6, WKN: A14XHT) ("LDS" or the "Company"), announces signing of a letter of intent ("LOI") with National Green Biomed Ltd. ("NGB") to manufacture CannaStripsTM in Mission, British Columbia, Canada. The LOI replaces and supersedes the Memorandum of Understanding the Company announced on February 27, 2019, and solidifies the intentions of both parties to continue to work towards the entry into a definitive agreement for joint venture ("JV") to build a manufacturing facility in British Columbia to produce CannaStripsTM.
Under the terms outlined in the LOI, the JV will build a manufacturing facility in Mission, British Columbia, Canada to produce CannaStripsTM. NGB will provide an extension of its Rosebud Health Canada License to the JV and land for the new facility to manufacture CannaStripsTM; the Company will invest a total of CAD$255,000 in a private placement for shares of common stock of NGB at $0.30 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; and
- The third obligation of $105,000 will be satisfied with the exercising of a $0.30 warrant per share upon issuance of a license from Health Canada.
In addition to the funds invested as part of the private placement, LDS will be responsible for paying for the permits, design, and build-out 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% royalty for sales in Canada and a 3% 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% stake in one of its' 25-acre parcels to LDS for $375,000. LDS 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 LDS 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 LDS facility which will be then sold to LDS at a discounted price to what the general market bears.
The Company's CEO, Brad Eckenweiler, commented, "The establishment of a Canadian CannaStripsTM 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 favorable legislation in the near future CannaStripsTM 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 CannaStripsTM 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 National Green Biomed Ltd.
Based out of Richmond, BC, Canada, National Green Biomed Ltd. is a Late Stage Applicant for Licensed Production under the 2018 Cannabis Act. With its 18,000+ft2Richmond facility, and lush 68-acre property in Mission, BC, NGB is poised for the next phase and is preparing for site development construction to begin in 2019. NGB is well situated to service Greater Vancouver; the facility is within 15 minutes of the Vancouver International Airport and only 30 minutes from downtown Vancouver. NGB has a research and development component and has committed to donating $1Mil to UBC (https://www.ngbiomed.ca/2017/04/10/hello-world/) to investigate Cannabis for HIV/AIDS, pain management, and addressing the opioid crisis within Canada. NGB is committed to producing high quality health and lifestyle products, staking their claim in the burgeoning industry for CBD, edibles, and boutique coconut based products.
About Lifestyle Delivery Systems Inc.
Lifestyle Delivery Systems Inc. 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 which results in a delivery system that is safe, consistent and effective.
On behalf of the board of directors of Lifestyle Delivery Systems Inc.
Brad Eckenweiler, CEO & Director
FOR MORE INFORMATION, PLEASE CONTACT:
Cautionary Disclaimer Statement:
The Canadian Securities Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. The Company cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among other things: risks and uncertainties relating to the Company's limited operating history and the need to comply with environmental and governmental regulations. In addition, marijuana remains a Schedule I drug under the United States Controlled Substances Act of 1970. Although Congress has prohibited the US Justice Department from spending federal funds to interfere with the implementation of state medical marijuana laws, this prohibition must be renewed each year to remain in effect. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.
View original content to download multimedia:http://www.prnewswire.com/news-releases/lifestyle-delivery-systems-announces-letter-of-intent-with-national-green-biomed-ltd-to-establish-a-manufacturing-facility-in-mission-british-columbia-canada-300858004.html
SOURCE Lifestyle Delivery Systems Inc.