Leviathan Natural Products Secures Lease with Medical Saints
November 26, 2020 at 07:00 AM EST
Toronto, Ontario--(Newsfile Corp. - November 26, 2020) - Leviathan Natural Products Inc. (CSE: EPIC) (the "Company" or "Leviathan") is pleased to announce that its wholly owned subsidiary, Woodstock Biomed Inc. ("Woodstock"), has secured a three year lease agreement (the "Agreement") with Medical Saints Ltd. ("Medical Saints"), a Health Canada regulated licensed producer of industrial hemp. The Agreement was entered into pursuant to the previously announced joint venture between Woodstock and Medical Saints. The Agreement allows for important research and development ("R&D") in the industrial hemp sector at Woodstock's greenhouse facility located in Pelham, Ontario.
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 invested a total of $655,000 in Woodstock's Pelham property and the R&D project for seeds, 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 investment based on a revenue sharing arrangement with Woodstock. If revenues are realized, 100% of net revenues will be used to repay Medical Saints' initial investment, and then Medical Saints and Woodstock will share revenues on a 50-50 basis with respect to any ongoing proceeds.
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.
# # #
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 the success of the R&D project, that the Agreement will result in revenue being generated, 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 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, the failure of the R&D project to develop superior hemp strains, the failure of the Agreement to result in revenue being realized by Medical Saints or Leviathan, income tax and regulatory matters, the ability of Leviathan to execute its business strategies, competition, crop failure, currency and interest rate fluctuations, 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, 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/69003