ECGI Announces Fully Executed LOI Toward Acquisition of East West Pharma Group

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Feb 08, 2023, 08:00 ET

LOS ANGELES, Feb. 8, 2023 /PRNewswire/ -- ECGI HOLDINGS INC. (OTC: ECGI) (ECGI or the Company), D/B/A Elite Cannabis Group Incorporated, a Nevada-based portfolio company pivoting into the legal cannabis and cannabinoid marketplace, is pleased to announce the signing of a Letter of Intent (the "LOI") between East West Pharma Group, Inc. ("EWPG"), a Wyoming corporation, and ECGI outlining the terms under which ECGI will acquire the key personnel, intellectual property, and current and future business operations of EWPG.

"This is a key talent and asset acquisition that will expand our network of potential investors through the lead operations team we get as part of the deal," noted ECGI CEO, Danny Wong. "East West has extensive knowledge and proprietary technology/processes within the CBD & eastern medicine field, and we will gain a tremendous base of specialized equipment as well as key personnel that include leaders in the cannabinoid extraction and product manufacturing space."

Management notes that this acquisition is a shift in the Company's strategy by becoming part of the Cannabis Manufacturing, Extract and Concentrates market – a $2.7 Billion dollar industry in 2021 (https://www.grandviewresearch.com/industry-analysis/cannabis-extract-market). ECGI's goal is to pair the vast cannabis space network and knowledge capital already at ECGI with EWPG's talent and equipment to drive rapid growth as an emerging leader in the California cannabis manufacturing space.

According to East West Pharma Group, the extraction equipment was custom built to process very large volumes of industrial hemp (up to 500 pounds per hour) and distill crude material through a high-volume liquid to liquid (L2L) process designed to generate optimal refined product. Assuming, outdoor prices quoted by CannabisBenchMarks.com's Feb 3, 2023, outdoor spot price at $417 per pound, the equipment can process up to $208,500 of material per hour.

The rare combination of industrial scale processing with fine quality distillation was the design brainchild of Dr. Zhihong Zhou, Ph.D., the dean of extraction of Yunnan University, School of Traditional Chinese Medicine (TCM). Yunnan University is considered the foremost research facility of TCM in China, and perhaps the top TCM facility in the world.

Key personnel assets incorporated into the acquisition include Dr. Zhou, Stanley Zhang, and Sam Lai.

Dr. Zhou has taught thousands of students and trained many university professors in plant extraction. He currently owns and operates several large industrial scale extraction facilities in China, and he will bring his many years of expertise in plant extraction to cannabis and industrial hemp for ECGI pending the acquisition.

Stanley Zhang is a University of California at Berkely graduate with a degree in Engineering and expertise in cannabis extraction as well as the entire spectrum of processing, including distillation, isolation, terpene extraction, cold pressing, isomerism, and other complex processes.

Sam Lai is a UC Berkely engineering graduate with a focus on liquid-to-liquid extraction of cannabis cannabinoids and on manufacturing of finished goods, including experience in vape, edibles, and pre-rolls. He also has strong experience in factory set-up, machinery, and compliance.

About ECGI

ECGI Holdings, which plans to operate as Elite Cannabis Group, is reorganizing as an acquisition-oriented corporation with California-based targets including undercapitalized and distressed licensed cannabis assets, properties zoned for cannabis cultivation and processing, and cannabis companies operating in market sectors with nationwide expansion possibilities.

Forward Looking Statements

This release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements also may be included in other publicly available documents issued by the Company and in oral statements made by our officers and representatives from time to time. These forward-looking statements are intended to provide management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. They can be identified by the use of words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "would," "could," "will" and other words of similar meaning in connection with a discussion of future operating or financial performance. Examples of forward-looking statements include, among others, statements relating to future sales, earnings, cash flows, results of operations, uses of cash and other measures of financial performance.

Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause the Company's actual results and financial condition to differ materially from those expressed or implied in the forward-looking statements. Such risks, uncertainties and other factors include, among others such as, but not limited to, economic conditions, changes in the laws or regulations, demand for products and services of the Company, the effects of competition and other factors that could cause actual results to differ materially from those projected or represented in the forward-looking statements. Any forward-looking information provided in this release should be considered with these factors in mind. We assume no obligation to update any forward-looking statements contained in this report.

SOURCE ECGI Holdings