JOINT NEWS RELEASE
VANCOUVER, British Columbia, May 29, 2019 – Organic Flower Investments Group Inc. (CSE: SOW)(FWB: 2K6)(OTC: QILFF) (“Organic Flower” or “OFIG” or the “Company”) is pleased to announce the Company has entered into a definitive agreement to acquire 80 per cent of Canada Cannabis Therapeutics Company (“CCTC”). CCTC controls the rights to a proprietary manufacturing process and formulation catalogue for a Nicorette-inspired medicinal cannabinoid product line.
Concurrently, Organic Flower has entered into a definitive agreement to acquire 80 per cent of the Colorado Science Company (“Colorado Science”). Colorado Science holds claim to a robust library of cannabinoid product formulations equipped with patented micro-diffusion technology, resulting in rapid onset effects and cannabinoid uptake.
Collectively, the agreements provide the Company increased exposure to an array of downstream assets and unique product formulations including:
- Nicorette-inspired sublingual cannabinoid product line;
- Patented micro-diffusion technologies;
- Diverse product formulation portfolio;
- Highly scalable proprietary manufacturing; and,
- Access to ISO-certified laboratories;
The aforementioned acquisitions amplify Organic Flower’s downstream competencies by way of elevated cultivation, processor and distribution capabilities, solidifying the Company’s market leader status as the next phase of cannabis normalization shifts towards consumer-focused product offerings.
Organic Flower will leverage its unbridled access to European distribution networks comprised of 80,000 end retail outlets and pharmacies to market and sell its innovative product formulations and Nicorette-inspired sublingual cannabinoid product line.
PATENTED CANNABINOID-INFUSED FORMULATIONS LIBRARY
Organic Flower has obtained the Canadian exclusive rights to a portfolio of cannabinoid-infused product formulations from a global formulations provider with over three decades of experience working with leading consumer product goods (“CPG”) brands. Colorado Science has engaged a roster of food engineers, nutritionists and scientists to optimize bioavailability, consistent dosing protocols and flavouring of the Organic Flower’s licensed formulations.
The Company will continue to leverage its production and processing assets, while further activating it’s downstream activities by launching cannabinoid-infused beverages, edibles and personal care products; specifically formulated with patented micro-diffusion technologies.
Under the terms of the agreement, Organic Flower will incorporate its patented micro-diffusion technologies to develop the following stock keeping units (“SKUs”):
- Gum, gummies, chews, mints, hard candy, pressed tablets and capsules;
- Teas, coffees, protein drinks;
- Pet-centric products;
- Skincare lotions; and
- Bath bombs
Organic flower will also collaborate with Colorado Science to scale its manufacturing processes and testing protocols at ISO-certified laboratories. These proprietary formulation and manufacturing processes are specifically adapted to ensuring consistent dose delivery, while maintaining taste and texture integrity. Organic Flower’s patented formulations will be adjusted based on variables including:
- Barometric pressures;
- Production time of day; and
Joel Dumaresq, Chief Executive Officer and a Director of Organic Flower stated: “These tactical acquisitions from proven operators further augment our existing portfolio of cannabinoid-infused food/beverage product formulation and manufacturing assets. Turnkey solutions including ingredient sourcing, manufacturing, testing, analytics to will further crystalize Organic Flower’s pole position as a thought leader throughout the next phase of cannabis normalization.
With the Canadian market primed to embrace formal regulations regarding cannabis edibles and beverages and legal cannabis in Canada expected to increase at a 44% CAGR to $5.2 billion over the next 5 years, Organic Flower is set to capture a significant proportion of this lucrative marketplace.”
NICORETTE-INSPIRED SUBLINGUAL CANNBINOID PRODUCT LINE
Organic Flower has also secured the rights to a proprietary manufacturing system enabling the production of cannabinoid-infused therapeutic gum, chewable tablets, and tablet/capsules.
The Company’s next generation line of medicinal-use cannabis products inspired by popular demand of Nicorette’s therapeutic products which boast the following:
- PROPRIETARY DUAL-DELIVERY TECHNOLOGY: Advanced patented processes reduce surface tensions, increase binding of molecules and enable homogenous mixing;
- RAPID SUBLINGUAL ACTIVATION: Optimized absorption methodologies facilitates rapid an onset within the first 15 minutes of application; and
- METABOLISM EFFICACY: Metabolizes in the liver to create a more lasting effect
Under the terms of the respective definitive agreements, the Company will issue 5 million common shares in the capital of Organic Flower to the shareholders of CCTC and 5 million common shares in the capital of Organic Flower to the shareholders of Colorado Science (collectively, the “Consideration Shares”). The Consideration Shares are subject to a 6-month hold period from the date of issuance.
OFIG’s acquired interest in CCTC and Colorado Science will form part of the asset sale to AgraFlora Organics International Inc. (“AgraFlora”). As previously announced on May 23, 2019, it is anticipated that the sale price for the sale assets will be comprised of 1.15 shares of Agraflora for each one (1) issued and outstanding share of OFIG at the time of closing of the asset sale.
ABOUT ORGANIC FLOWER INVESTMENTS
Organic Flower, an investment holding firm, is leveraging strategic relationships, proprietary investments and exclusive partnerships with pre-eminent international cannabis cultivators and formulators for the development of best-in-class products and brands to be marketed and distributed throughout its global footprint.
ON BEHALF OF THE ORGANIC FLOWER INVESTMENTS GROUP INC. BOARD OF DIRECTORS
+1 (604) 687-2038
Learn more about Organic Flower by visiting our website at: https://cleanpower.capital/
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Notice Regarding Forward Looking Information:
This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or information that certain events or conditions “may” or “will” occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking information includes, but is not limited to: political changes in Canada and internationally, future legislative and regulatory developments involving cannabis in Canada and internationally, the Company’s ability to secure distribution channels in international jurisdictions, competition and other risks affecting the Company in particular and the cannabis industry generally.
The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward- looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.