VANCOUVER, British Columbia, Dec. 07, 2018 (GLOBE NEWSWIRE) — Abattis Bioceuticals Corp. (the “Company” or “Abattis”) (CSE:ATT) (OTC:ATTBF) is pleased to announce that it has signed a non-binding letter of intent dated December 6, 2018 (the “LOI”) to acquire 100% interest in NutriVida Corp. (“NutriVida”) through an arm’s length transaction, a privately held fertilizer and nutrient company located in Langley, BC. The acquisition of Nurtivida plays directly into the Company’s push to add to its current and future cannabis growth assets, including, but not limited to, its acquisition of Gabriola Green Farms Inc. earlier in 2018.
The NutriVida acquisition brings both experienced management as well as a heavily developed client list to Abattis; two integral components the Company intends to leverage as it continues to grow in Canada’s new legalization framework. Specifically, the management of NutriVida has been a prominent force in the fertilizer and cultivation industry, with over 35 years of experience and, providing a vast wealth of knowledge and experience in researching, innovating, manufacturing, and selling all-natural, bio-safe, fertilizers and plant nutrients. Since commencing operation in spring of 2018, NutriVida offers a complete line of plant products as well as a detailed “Feed Schedule” for soil & hydroponic systems to facilitate the harvest of large, healthy crops without sacrificing the environment. NutriVida also has a wide array of proprietary fertilizer brands specifically formulated for cannabis and cannabis cultivation, as well as other horticultural areas.
Pursuant to the terms of the LOI, the Company will negotiate a definitive agreement which will include a purchase price up to $15,000,000 to be paid in shares based on milestones which will be outlined in the Agreement. The initial payment, which will be defined in the agreement, will be based on a deemed share price of $0.12. Based on the deemed share price the transaction will result in the shareholders of NutriVida owning 26% of the Company.
“This is another very significant growth milestone for Abattis,” stated Rob Abenante, President and CEO of Abattis. “Acquiring and working with NutriVida not only adds to our Company’s revenue, but also expands our cannabis growth potential going forward by improving our ability to provide quality cannabis products,” added Mr. Abenante.
Cannabis, as any other crop, requires the addition of essential nutrients (fertilization) to the nutrient solution (hydroponic system) and or the soil throughout the lifecycle of the plant to aid in growth and proper development. Issues with modern horticulture such as nutrient deficiency and excess nutrients can have a negative impact on crop production. Appropriate additions of fertilizers and plant growth supplements, on the other hand, help modulate the production of metabolites such as the tetrahydrocannabinol (THC) and cannabidiol (CBD), the two main components of medical cannabis and major selling points for cannabis infused products.
As a by-product of increased popularity in cannabis and the cannabis industry across Canada, global growers and retailers have begun to focus more on the quality of their cannabis and cannabis products. In turn, nutrient and soil companies, such as NutriVida, have entered the picture, offering proprietary fertilizer blends directly supporting cannabis growth and cultivation. Fertilizer products not only help bolster cannabis potency, growth cycles and crop yields, but have also become a strategic necessity for professional growers as they continue to scale up and provide more biomass in the newly legal Canadian cannabis sector.
Analysts at Raymond James are big fans of the potential for growth in the global fertilizer industry. In a recent report on the fertilizer industry, Raymond James analyst Steve Hansen stated that global food demand will ensure that the use of fertilizer continues to grow steadily over the next few decades. “We believe the long-term demand outlook for global agricultural products, including fertilizers, is robust,” he said. “Many of the fertilizer sectors industry leaders are easily generating tens of millions of dollars or more in annual revenue event without the cannabis industry – think lawn and garden care giant Scotts Miracle-Gro. But with the legal development in Canada, many newer players are already turning decent profits with no end in sight as this new horticultural niche is further developed and expanded.” added Mr. Hansen.
Berkshire Hathaway predicts the fertilizer market is estimated to reach over $245 billion by 2020. According to a recent report published by Forbes, Brightfield Group projects that the global cannabis market was worth $7.7 billion in the end of 2017, and is projected to reach $31.4 billion by 2021, creating increased reliance on cannabis specific fertilizer.
“With the recent legalization of cannabis, Canada is now setting itself up to be a global powerhouse for the provision of medical and recreational cannabis. Abattis is working hard to be one of the best positioned companies in this quickly accelerating market, and we feel that NutriVida’s influence will directly benefit our future cultivation of cannabis moving forward,” stated Mr. Abenante.
About Abattis Bioceuticals Corp.
Abattis is a life sciences and biotechnology company which aggregates, integrates, and invests in cannabis technologies and biotechnology services for the legal cannabis industry developing in Canada. The Company has successfully developed and licensed natural health products, medicines, extractions, and ingredients for the biological, nutraceutical, bioceutical, and cosmetic markets. The Company is also seeking to acquire exclusive intellectual property rights to agricultural technologies to be employed in extraction and processing of botanical ingredients and compounds. The Company follows strict standard operating protocols and adheres to applicable laws of Canada and foreign jurisdictions.
ON BEHALF OF THE BOARD,
ABATTIS BIOCEUTICALS CORP,
“Rob Abenante”
Robert Abenante, President & CEO
For more information, please visit the Company’s website at: www.abattis.com
For inquiries please contact (808) 650-3007 or at [email protected]. Abattis’ investor relations are managed by Canada One Communications Inc.
About Canada One Communications Inc.
Canada One Communications Inc. (“Canada One”) is a full-service Investor Relations and Marketing company that focuses on both private and public sectors within the Canadian markets. Canada One offers timely responses to all investor inquiries over several mediums and effective, thorough market awareness programs that are specifically designed to maximize exposure and bring value to shareholders. Canada One’s dedicated and experienced team strives to promote client information to the public and educate potential investors on the various developments of its clients. From basic phone-call and email investor correspondence, to full-scale comprehensive marketing packages which includes industry analysis, website development, corporate videos and other marketing programs, Canada One provides a full suite of services that are fully compliant with Canadian securities regulations. Canada One is driven by an uncompromising dedication to provide publicly listed and private companies with across-the-board investor relations and marketing solutions, directly translating these services into organic growth and increased market value of its valued clients.
FORWARD LOOKING INFORMATION
This press release contains forward-looking statements. The use of any of the words including but not exclusive to “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “intends”, “should”, “believe” and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this press release include statements regarding: (i) general trends in the global fertilizer industry; (ii) the estimated market growth of the global fertilizer industry by 2020; (iii) the projected size of the global cannabis market by 2021; (iv) the effect of the NutriVida acquisition on the Company’s future cannabis cultivation and production; and (v) the success of the marketing and sales of NutriVida’s fertilizer products. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Additional risk factors are included in the Company’s Management’s Discussion and Analysis, available under the Company’s profile on www.sedar.com. The forward-looking statements are made as at the date hereof and the Company disclaims any intent or obligation to publicly update any forward-looking statements, where because of new information, future events or results, or otherwise, except as required by applicable securities laws.
