TORONTO, Sept. 06, 2017 (GLOBE NEWSWIRE) -- Platinex Inc. (CSE:PTX) (the "Company" or “Platinex” ) is pleased to announce an update on its strategy to expand its business in the cannabis space.
James R. Trusler, President and CEO of Platinex comments, "Over the last few weeks we have been examining various strategies to capitalize on the lucrative growth of the cannabis sector in North America. While the industry continues to evolve on the regulatory and business fronts, our chief objectives are creating shareholder value in an accretive manner and mitigating risk. The current regulatory framework presents an attractive opportunity for public companies to bridge the funding gap and partner with entrepreneurs in a mutually beneficial manner."
Expansion Strategy
Together with its advisors and consultants, the Company has developed a strategy that is focused on partnering with businesses that are involved in the cannabis sector by way of acquisition, joint-venture, strategic partnership, or direct investment. In evaluating various opportunities and strategies, Platinex has developed the philosophy which fundamentally rests upon the following premises:
- Geographic Focus . While Platinex is interested in pursuing opportunities in most jurisdictions which have legalized cannabis for medical or adult recreational use, its primary efforts will be on North America.
- Regulatory Considerations . In the United States, Platinex will only consider opportunities which are fully compliant with the requirements of the Cole Memo 1 . Emphasis is placed on the US states and municipalities which have implemented regulatory framework that is favorable to outside investment. In the US states with residency requirements, Platinex will seek to partner with companies as an ancillary service provider.
- Value Chain Segments . Platinex will consider opportunities in the regulated segments including retail, cultivation, extraction, and processing. Ancillary service providers that work directly with licensed operators, but are not subject to the same regulations (eg. packaging suppliers, non-cannabis input providers, equipment providers) will be considered.
- Capital Intensity. Platinex management recognizes that the regulated segment of the cannabis industry can be capital intensive. The Company will first consider the impact that each additional dollar of investment makes on the business' financial and competitive position, as well as ultimate return on investment.
- Fundamental Business Characteristics. Platinex believes that each business starts and ends with people. Character, integrity and commitment to excellence are the chief qualities that set apart successful management. In pursuing partnerships with potential companies in the space, Platinex will look to empower entrepreneurs to continue building their businesses by taking advantage of the resources that Platinex team can offer.
- Risk Mitigation . While any business opportunity inherently contains risk, Platinex will look for opportunities where such risk can be reasonably justified and any capital deployment is supported by rigorous business, legal and financial due diligence.
- Types of Partnerships. The industry remains fragmented and the regulations differ significantly between states, counties and municipalities. As such, Platinex will evaluate each opportunity on a standalone basis and consider what type of partnership is appropriate in each circumstance. In general, the types of partnerships may include but are not limited to: direct equity investment, strategic joint-venture, secured loan, and equipment leasing partner.
______________________________ 1 A memorandum dated August 29, 2013 addressed to "All United States Attorneys" from James M. Cole, Deputy Attorney General, the U.S. Department of Justice acknowledged that certain U.S. States had enacted laws relating to the use of marijuana and outlined the U.S. federal government's enforcement priorities with respect to marijuana notwithstanding the fact that certain U.S. States have legalized or decriminalized the use, sale and manufacture of marijuana.
Update on the CannabisMall.Org Community Resource Website
The Company continues to work towards developing the cannabismall.org website, which was initially launched on July 1, 2017. Since its launch, the website has had 214 unique visits and a total of 342 sessions, which includes people who have re-visited. The Company is considering various strategies that it can employ to monetize the web platform as it continues to add users and additional resources. Platinex expects that the cannabismall.org will be an important resource to facilitate the Company's growth as it pursues new business opportunities in the cannabis space.
About Platinex Inc . Platinex is currently focusing efforts on the timely and strategic development of an online platform for the cannabis industry. www.cannabismall.org launched on July 1, 2017 and the new site will receive regular updates. At the same time Platinex has been focusing its mining business efforts in assembling a very large property in the Shining Tree gold camp, which has received little modern exploration compared to other gold camps in the Abitibi greenstone Belt. Shares of Platinex are listed for trading on the Canadian Securities Exchange under the symbol "PTX".
To receive Company press releases, please email lparadis@platinex.com and mention “Platinex press release” on the subject line.
FORWARD-LOOKING STATEMENTS : Certain of the information contained in this news release may contain “forward-looking information”. Forward-looking information and statements may include, among others, statements regarding the future plans, costs, objectives or performance of Platinex, or the assumptions underlying any of the foregoing. In this news release, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking statements and information are based on information available at the time and/or management’s good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company’s control. The Company does not intend, nor does the Company undertake any obligation, to update or revise any forward-looking information or statements contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
FOR FURTHER INFORMATION PLEASE CONTACT: Platinex Inc. Lori Paradis, Corporate Secretary Tel: (416) 268-2682 Email: lparadis@platinex.com Web: www.platinex.com
