Liht Cannabis Corp. Announces Signing of $10,000,000 Non-Dilutive Development Agreement For Its Project In Celista, British Columbia
KELOWNA, BC, Feb. 7, 2019 /PRNewswire/ - Liht Cannabis Corp. (CSE: LIHT) (OTCQX: LIHTF) or the "Company") is pleased to announce, further to news releases dated June 25, 2018, August 21, 2018 and September 26, 2018, the Company has entered into a development agreement (the "Development Agreement") dated January 30, 2019 with 1186626 B.C. Ltd., a private British Columbia corporation for its project in Celista, British Columbia.
The Development Agreement with 1186626 B.C. Ltd., provides Liht with C$10,000,000 of non-dilutive financing to build-out operations in British Columbia. Funding will be provided in tranches over a two-year period based on certain development and production milestones. The Company is not selling an interest in the Celista project.
The Company has agreed to, over time, pay back the capital contributions, plus interest at a rate of prime plus 5% and 50% of the potential distributable cash from the Celista cannabis operations, if any, for three (3) years after the date that all ten (10) facilities (each 10,000 square feet) are concurrently in full production and fully operational. The estimated timeline to complete the construction of all ten (10 facilities) is conservatively two (2) years at an approximate cost of C$2,500,000 per facility.
The first two (2) 10,000 sq. ft buildings continue to meet early construction milestones.
Building 1
- HVAC, plumbing, electrical and security installations are in progress. All equipment installation will be complete in approximately six (6) weeks.
Building 2
- Design and construction of the foundation is complete. Erection of the pre-fabricated structure has begun. The building will be complete to lock-up in approximately six (6) weeks.
Construction progress can be viewed at www.lihtcannabis.com
The remaining eight (8) buildings will be constructed with non-concrete base foundations. The Company anticipates completion to full build-out prior to the estimated two (2) year construction schedule.
Further to our news release dated January 17, 2019, Liht's wholly-owned subsidiary, Full Spectrum Medicinals ("FSM"), has secured the exclusive rights to the S5 Agro Technology Suite (the "S5-ATS") proprietary technology. This includes Quick Response Holographic Labeling System, Agro-View, Agrowavetech, Agro-Array. The S5-ATS instruments are so advanced that they have the potential to revolutionize a new standard in agricultural analysis allowing crop insurance to be secured.
Liht will use this technology in all of its cultivation facilities in Canada.
"This opportunity, supported by our propriety cultivation technology, positions us to take full advantage of the organic market once licensed and certified." Linda Sampson, President & COO
ABOUT LIHT CANNABIS CORP.
Liht Cannabis Corp. is a publicly traded company investing in the medical and recreational cannabis space, since 2014. Liht has rapidly expanded to include cultivation, production and dispensary locations in the key North American states of Washington, Nevada, and California, and are seeking expansion opportunities worldwide.
SOCIAL MEDIA:
STOCK EXCHANGES:
Liht trades in Canada, ticker symbol LIHT on the CSE, in the United States, ticker symbol LIHTF on the OTCQX.
Neither the CSE nor its Regulation Services Provider, nor the OTCQX® has approved nor disapproved the contents of this press release. Neither the CSE nor the OTCQX® accepts responsibility for the adequacy or accuracy of this release.
MARIJUANA INDUSTRY INVOLVEMENT:
Canadian listings (CSE) will remain in good standing as long as they provide the disclosure that is rightly required by regulators and complying with applicable licensing requirements and the regulatory framework enacted by the applicable state in which they operate.
Liht owns marijuana licenses in California and Nevada. Marijuana is legal in each state however marijuana remains illegal under US federal law and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that Liht's ability to access private and public capital could be affected and or could not be available to support continuing operations.
Liht's business is conducted in a manner consistent with state law and is in compliance with licensing requirements.
Liht has internal compliance procedures in place and has compliance focused attorneys engaged in jurisdictions to monitor changes in laws for compliance with US federal and state law on an ongoing basis. These law firms inform any necessary changes to our policies and procedures for compliance in Canada and the US.
FORWARD - LOOKING STATEMENTS:
Certain statements in this release are forward-looking statements, which includes, the financing under the Development Agreement, the build-out of the Celista project (including the ten facilities), the expected outcomes of its business, and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur. Forward-looking statement are necessarily based upon a number of factors that, if untrue, could cause the actual results, performances or achievements of the Company to be materially different from future results, performances or achievements express or implied by such statements. These assumptions, risks and uncertainties include, among other things, the state of the economy in general and capital markets in particular, present and future business strategies, the environment in which the Company will operate in the future, and other factors, many of which are beyond the control of the Company. While such estimates and assumptions are considered reasonable by the management of the Company, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks.
Forward-looking statements are subject to a variety of risks and uncertainties, which could cause actual events, level of activity, performance or results to differ materially from those reflected in the forward-looking statements, including, without limitation: that laws and regulations may become more onerous; the ability of the Company to obtain necessary financing; the economy generally; the future growth, results of operations, performance and business prospectus and opportunities; changes in and the effect of government policies; demand for products; competition; anticipated and unanticipated costs; reliance on management; claims and legal proceedings; conflicts of interest; and market price and volatility of the common shares. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, continued availability of capital and financing and general economic, market or business conditions, the loss of key directors, employees, advisors or consultants, technology failures, failure to obtain a license from Health Canada or from other government agencies, failure to develop new and innovative products, failure of counterparties to perform their contractual obligations, fees charged by service providers, litigation, changes in laws, competition, and an increase in operating and constructions costs. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Investors are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements.
The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above. The Canadian Securities Exchange has not reviewed, nor approved the contents of this news release.
SOURCE Liht Cannabis Corporation
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