VANCOUVER, British Columbia, Aug. 28, 2018 (GLOBE NEWSWIRE) -- Kaneh Bosm BioTechnolgy Inc. (CSE: KBB) (FWB: 8K51) (OTC: KNHBF) (“Kaneh Bosm” or the “Company”) is pleased to announce that it has entered into a definitive agreement (the “Agreement”) with Danavian Cannabis Ltd. (“Danavian”) to acquire 100% of Danavian’s issued and outstanding shares.
Danavian controls licenses for cannabis cultivation and manufacturing in the Kingdom of Denmark. Kaneh Bosm’s entry into Denmark mirrors industry peers such as Canopy Growth Corporation, Green Organic Dutchman Holdings, Aurora Cannabis Inc. and CannTrust Holdings.
Danavian has engaged an Israeli cannabis organic cultivation and management company, Sababa Sciences Inc. (“Sababa Sciences”). Sababa Sciences will provide end-to-end management including the implementation of advanced Israeli agricultural technologies for high quality medical cannabis treatments. Danavian and Sababa Sciences have designed a 55,000 square foot, fully automated greenhouse facility that will meet IMC-GAP, ISO:9001 and European GMP standards. Finished cannabis and cannabis derivatives produced by Danavian will be sold through Denmark’s retail pharmacy network.
On January 1, 2018, Denmark legalized medical cannabis following a unanimous vote by the Danish parliament. Since legalization, the Danish government has displayed strong support for cannabis development, in the forms of research grants and tax incentives.
Danavian holds claim to premier European cannabis assets; domiciled in a jurisdiction with a highly skilled agriculture and manufacturing workforce. Davavian also boasts various industry relationships that will complement future development potential throughout Scandinavia. Continued development of Danavian’s Danish cannabis portfolio will help serve both local and export market demand. Danavian is tactically positioned in immediate proximity to Germany, allowing for direct imports of CBD products, as well as medical cannabis flower.
Eugene Beukman, Chief Executive Officer of Kaneh Bosm states, “Kaneh Bosm now holds claim to one of twelve highly coveted Danish cannabis cultivation and manufacturing licences. Denmark has proven to be an environment conducive to the continued development of sustainable and forward thinking cannabis enterprises. The Company looks forward to capitalizing on Denmark’s tactical position within the European Union and well funded healthcare system.”
The acquisition of Danavian will create material synergises with Kaneh Bosm’s existing European distribution channels and cultivation capabilities. This Agreement further enhances the Company’s vertically integrated, European seed-to-sale aspirations. Danavian and Sababa Sciences plan to apply for local approvals to manufacture and distribute Sababa’s patented, formulated products.
Under the terms of the Agreement, the Company will issue approximately 37,878,787 common shares of the Company and pay a cash fee of $2,944,820.
The Company also announces it has elected not to conclude its previously announced transaction in Slovenia.
On behalf of the Board of Directors of Kaneh Bosm Biotechnology Inc.
“Michael Martinz”
Michael Martinz President, Director mmartinz@kanehbosmbiotech.com
THE CSE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.
This news release includes certain statements that may be deemed “forward-looking statements”. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “would”, “project”, “should”, “believe” and similar expressions are intended to identify forward-looking statements. 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. These statements speak only as of the date of this News Release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company’s disclosure documents which can be found under the Company’s profile on www.sedar.com
