Leviathan Natural Products Announces R&D Hemp Joint Venture with Medical Saints
August 20, 2020 at 18:11 PM EDT
Toronto, Ontario--(Newsfile Corp. - August 20, 2020) - Leviathan Natural Products Inc. (CSE: EPIC) (the "Company" or "Leviathan"), through its wholly owned subsidiary, Woodstock Biomed Inc. ("Woodstock"), has entered into a joint venture with Medical Saints Ltd. ("Medical Saints"), a Health Canada regulated licensed producer of industrial hemp. The joint venture allows for important research and development ("R&D") in the industrial hemp sector.
The R&D focuses on the development of a superior strain of hemp, distinct from the cannabis plant category, owing to the absence of material amounts of THC. The process involves the examination of various cultivation methods, analyzing soil conditions, studying the speed of plant maturation, and identifying the best retention methods of desirable terpenes.
Medical Saints is providing an unsecured non-interest bearing credit facility of $500,000 with no fixed maturity date for the R&D initiative, which is currently housed at Woodstock's greenhouse facility located in Pelham, Ontario. Proceeds are being used for test seedlings, security fencing and modest repairs to existing soft-sided greenhouse structures necessary to maintain operational functionality. Depending on the success of this project, and if revenue streams are ultimately realized, Medical Saints will recoup its original $500,000 investment based on a revenue sharing arrangement with Woodstock. If revenues are realized, 100% of net revenues will be used to repay the credit facility and, upon full repayment, Medical Saints and Woodstock will share revenues on a 50-50 basis with respect to any ongoing proceeds.
Response to Town of Pelham Interim Control By-Law and Provincial Offences Act Charge
Leviathan continues to challenge the perplexing legal and procedural roadblocks implemented by the Town of Pelham (the "Town"). Leviathan has three separate legal challenges involving the Town. The most recent follows a charge under the Provincial Offences Act for allegedly failing to comply with the Town's Cannabis Interim Control By-law (the "By-law"). The Company remains steadfast in its position to protect the interests of stakeholders and will not be intimidated by the Town's unmerited actions. The Town ignores the fact that no cannabis is being grown at the Woodstock site, which is being utilized solely in accordance with Medical Saints' Health Canada license to research industrial hemp.
About Leviathan Natural Products
For more information, contact Martin J. Doane, CEO, Leviathan Natural Products Inc. at 416.903.6691 or Jayne Beckwith, Chief Communications Officer, Leviathan Natural Products Inc. at 416. 806.0591.
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
Certain information in this press release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "potential", "believe", "intend" or negatives of these terms and similar expressions. Forward-looking statements are based on certain assumptions, including that Leviathan and Medical Saints will execute the definitive joint venture agreement, that Medical Saints will advance a $500,000 credit facility, and the focus of the R&D that will be carried out by the joint venture, renovations at the Carthage, Tennessee facility will be completed sufficiently quickly, the Company being able to secure sufficient hemp biomass to enable commercial production at the Carthage, Tennessee facility, pre-construction and construction activities will be completed at the Carmen de Viboral, Colombia facility by Q1/2021, the Company will obtain equipment financing for construction activities and the purchase of extraction equipment at the Carmen de Viboral facility, and that the Town of Pelham, Ontario, the newly introduced zoning by-law and other related amendments, and the three separate legal challenges involving the Town of Pelham will not unduly restrict the Company's cannabis and hemp operations. Other assumptions include the successful application to be a licensed cannabis producer and seller, expected revenue will not be less than necessary to fund growth opportunities and the financing of the construction of the greenhouses, results and profits from operations will not be less than required to fund growth opportunities and construction of greenhouses, performance, industry trends, growth opportunities will be available, and general business, economic, competitive, political and social uncertainties will not prevent the Company from conducting its business. While Leviathan considers these assumptions to be reasonable based on information currently available, they are inherently subject to significant business, economic and competitive uncertainties and contingencies and they may prove to be incorrect. Forward‐ looking information speaks only to such assumptions as of the date of this release.
Forward-looking statements also necessarily involve known and unknown risks, including without limitation, risks associated with general economic conditions, adverse industry events, marketing costs, loss of markets, future legislative and regulatory developments, the inability to access sufficient capital on favourable terms, the medical and recreational cannabis industry in Canada and internationally, income tax and regulatory matters, the ability of Leviathan to execute its business strategies, competition, crop failure, currency and interest rate fluctuations, time delays to complete renovations at the Carthage, Tennessee facility, the inability to secure sufficient hemp biomass to enable commercial production at the Carthage, Tennessee facility, delays in construction of the Carmen de Viboral, Colombia facility, the inability to obtain equipment financing for the Carmen de Viboral facility, the risk that the newly introduced zoning by-law and other related amendments and the three separate legal challenges involving the Town of Pelham will unduly restrict the Company's cannabis and hemp operations in the Town of Pelham, Ontario, the risk that the parties may not agree to terms and enter into a definitive joint venture agreement, that Medical Saints may not advance the $500,000 credit facility, that the R&D project may prove unsuccessful and other risks. Readers are cautioned that the foregoing is not exhaustive. Readers are further 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 placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ from those anticipated. Forward-looking statements are not guarantees of future performance. The purpose of forward‐looking information is to provide the reader with a description of management's expectations, and such forward‐looking information may not be appropriate for any other purpose.
Except as required by law, Leviathan disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.
Forward- looking statements contained in this news release are expressly qualified by this cautionary statement.
Source: Leviathan Natural Products Inc.
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