TORONTO, Jan. 4, 2018 /PRNewswire/ - Liberty Health
Sciences Inc. (CSE: LHS) (OTCQX: LHSIF) ("Liberty" or the
"Company") announced today that it has entered into a binding term
sheet to acquire all of the issued and outstanding shares of 242
Cannabis Canada Ltd. (the "242 Shares"), whose wholly-owned
subsidiary 242 Cannabis, LLC, has agreed to purchase a 387 acre
parcel of land in Gainesville,
Florida (the "Property").
The Property includes over 200,000 square feet of state-of-art
greenhouses, head houses, tissue culture lab and processing
facilities. The Company plans to retrofit the facilities over the
coming months which will enable Liberty to expand their production
capacity a year sooner than projected in order to meet the growing
patient demand in Florida. Patient
count continues to increase and at the end of 2017, approximately
64,000 patients had registered with the state, an almost 300%
increase in total patients since June 30,
2017.
Upon completion of the retrofit, Liberty will be one of the
leading medical cannabis providers in the Florida market with an expected annual
capacity of 12,000 Kgs of high quality, affordable, medical
cannabis. Use of the facilities as an approved cultivation
facility for Liberty under its MMTC license is subject to
inspections and/or approvals from the Florida Department of Health,
Office of Medical Marijuana Use.
"This acquisition of nearly 400 acres of property shows
Liberty's commitment to provide patients with a consistent supply
of high-quality cannabis to meet their medical needs," said
George Scorsis, Director and CEO of
Liberty. "Our state of the art facilities will be equipped with the
latest in industry leading lighting technology and process
automation."
The proposed acquisition will be completed through a series of
transactions. The Company expects 242 Cannabis, LLC's purchase of
the Property and the subsequent purchase by the Company of the 242
Shares to close on or prior to February
9,2018, and closing is subject to standard due diligence
including title, environmental assessments and surveys as well as
the satisfaction of conditions precedent in accordance with the
purchase and sale contract. As consideration for the 242 Shares,
the Company will issue 18,815,322 units of the Company, with each
unit being comprised of one common share of the Company and
one-half common share purchase warrant, with each whole warrant
exercisable at $2.07 for a period of
three years from the closing date.
Until such time that the retrofit is completed at the new
facility, Liberty will continue to operate their existing 36 acre
facility, also in Gainesville.
Since acquiring the existing facility, Liberty has made a number of
process and automation improvements and expects to complete an
increase in growing capacity to 24,000 square feet in early
2018.
For more information on Liberty please visit
www.libertyhealthsciences.com.
About Liberty Health Sciences Inc.
Liberty Health Sciences Inc. ("Liberty") is an investor and
operator in the medical cannabis market, capitalizing on new and
existing opportunities in U.S. states where medical cannabis is
legal. Liberty's stringent investment criteria for
expansion maximizes returns to shareholders,
while focusing on significant near- and
mid-term opportunities. Liberty has an
extensive background in highly regulated industries, with expertise
in becoming a low-cost producer. Liberty leverages commercial
greenhouse knowledge to deliver high-quality, clean and
safe pharmaceutical grade cannabis to patients.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain
information in this news 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", "believe", "plan",
"intend" or the negative of these terms and similar expressions.
Forward-looking statements in this news release include, but are
not limited to, expectations related to the Company's future
expansion and growth strategies, the completion of 242 Cannabis,
LLC's purchase of the Property and the subsequent purchase of the
242 Shares by the Company, the Company's expectations in respect of
the future growth of medical cannabis as a treatment option in
Florida, the planned retrofitting
and equipping of the facilities at the Property and the Company's
expectations regarding market position. Forward-looking statements
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 involving medical
marijuana; inability to access sufficient capital from internal and
external sources, and/or inability to access sufficient capital on
favourable terms; the medical marijuana industry in the United States generally, income tax and
regulatory matters; the ability of Liberty to implement its
business strategies; competition; crop failure; currency and
interest rate fluctuations and other risks.
Readers are cautioned that the foregoing list 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 materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement.
SOURCE Liberty Health Sciences Inc.