Chemesis International Inc. Enters into Binding Agreement to Acquire 100% of an Arizona based Manufacturing Facility
04/15/2019 | 03:06am EDT
VANCOUVER, British Columbia, April 15, 2019 (GLOBE NEWSWIRE) -- Chemesis International Inc. (CSE: CSI) (OTC: CADMF) (FRA: CWAA) (the “Company” or “Chemesis”), announces it has entered into a Binding agreement to acquire a fully operational cannabis manufacturing facility in Arizona (“Facility”), establishing the Company as a Multi-State Operator. During its operations in calendar Q1 2019, the Facility earned revenues of approximately USD $1,000,000.
The Facility is 5,000 square feet and is a turn key solution that comes with a team of operators in place. The Facility currently produces finished goods products, such as hard and soft-capsules, cartridges, lotions, tinctures, and other liquid formulations. Additionally, the Facility focuses on producing products that are 100% Cannabidiol (CBD).
The Company has continued to focus on its ability to enter the CBD market by adding manufacturing capabilities in California and now in Arizona. The CBD market potential across the United States continues to grow and Chemesis is positioning itself to quickly gain market share in an industry that is expected to exceed $2.1 billion by 20201. The Facility will leverage the 2018 U.S. Farm Bill to further capitalize on the expected increased demand for CBD.
“The Facility in Arizona gives Chemesis a turn key solution that brings strong bottom line revenues and a team of operators that will help the Company expand its multi-state operations,” said CEO of Chemesis, Edgar Montero. “Chemesis plans to explore expansion opportunities into additional states as the cannabis industry continues to see further validation. The acquisition brings a team of individuals that brings a wealth of experience that we believe will allow Chemesis to gain market share.”
Under the terms of this acquisition, Chemesis will issue 250,000 shares at a deemed price of CDN $2.11.
The Company expects to close its previously announced acquisition of the California fully licensed cannabis extraction and manufacturing facility within the next ten days.
On Behalf of The Board of Directors
Edgar Montero CEO and Director
About Chemesis International Inc.
Chemesis International Inc. is a vertically integrated global leader in the cannabis industry, currently operating within California, Puerto Rico, and Colombia.
Chemesis is developing a strong foothold in key markets, from cultivation, to manufacturing, distribution and retail. Chemesis has facilities in both Puerto Rico and California, allowing for cost effective production and distribution of its products. In addition, Chemesis leverages exclusive brands and partnerships and uses the highest quality extraction methods to provide consumers with quality cannabis products.
Chemesis will add shareholder value by exploring opportunities in emerging markets while consistently delivering quality product to its consumers from seed to sale.
Forward-Looking Information:This news release contains "forward-looking information" within the meaning of applicable securities laws, including in relation to statements regarding the Acquisition, the anticipated benefits of the Acquisition, the expected size of the CBD market, the Company’s ability to increase production of various cannabidiol products, and generally regarding the business, products and future of the Company’s business, its product offerings and plans for sales and marketing, including upon completion of the Acquisition. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance and developments to differ materially from those contemplated by these statements depending on, among other things, the risks that the Acquisition will not be completed as proposed or at all, that the anticipated benefits of the Acquisition will not materialize, that the CBD market will not expand as anticipated, that the Company will not be able to expand production of CBD products at the rate anticipated upon closing of the Acquisition (or at all), and generally that the Company's products and plan will vary from those stated in this news release and the Company may not be able to carry out its business plans as expected. Except as required by law, the Company expressly disclaims any obligation and does not intend to update any forward-looking statements or forward-looking information in this news release. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct and makes no reference to profitability based on sales reported. The statements in this news release are made as of the date of this release.
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