news
Chemesis Int'l increases stake in SAP Global to 80%
2018-07-19 09:16 ET - News Release
Mr. Edgar Montero reports
CHEMESIS INTERNATIONAL INC. INCREASES OWNERSHIP INTEREST IN SAP GLOBAL; ACQUIRES CALIFORNIA SAP BRAND
Chemesis International Inc. has increased its ownership stake in SAP Global from 51 per cent to 80 per cent. SAP is a California corporation that controls legal cultivation and manufacturing licenses for the new state-of-the-art facility, where the Company will manufacture and distribute medical and recreational tetrahydrocannabinol and cannabidiol products for the California market.
With recreational cannabis legal in California, SAP's flagship facility and operations strategically located in Cathedral City, California, have the legal standing necessary to meet the California medical and recreational application requirements, which in turn will facilitate the sale of over-the-counter and holistic cannabis products.
SAP is able to process up to 2,000 lbs of agricultural trim and yield as much as 200 lbs of clean, compliant cannabis oil per day at its flagship facility. This capacity is intended to provide Chemesis with a consistent revenue stream with products that are essential to the industry and cater to both the medical and recreational cannabis markets in California. To increase its ownership of SAP to 80%, the Company committed and paid an additional $700,000 CDN toward additional capital expenditures at the flagship facility.
The Company also is pleased to announce the acquisition of the California Sap brand and product catalogue, which includes the effective and easy-to-use cannabis oil Gramqul and Vape Cartridges. As part of the acquisition for the California Sap brand, the Company issued $500,000 USD in stock at a deemed price of $1.00 CDN per share. The stock is subject to a 36-month lock-up/leak-out.
"We are extremely pleased to be expanding upon the originally planned capacity at our flagship facility. SAP's management team has been consistently and highly awarded within California and the industry at large for over a decade with respect to its extraction techniques and oils, topicals, e-liquids, and other cannabis products utilizing THC, CBD, and full-spectrum cannabinoids. The addition of the California Sap brand and products are great complements to the SAP facility and management and important milestones for Chemesis. These efforts demonstrate Chemesis' commitment to quality and efficiency in both medical and recreational markets and form the cornerstone of the enterprise we are building," said Edgar Montero, CEO of Chemesis.
About Chemesis International Inc.
Chemesis International Inc. is a vertically integrated global leader in the cannabis industry with current operations and facilities in Puerto Rico and California {A –} locations that allow for cost-effective production and distribution of its products into key markets on a bi-coastal basis in the United States. In addition, Chemesis leverages exclusive brands and partnerships and highly efficient, quality extraction methods to provide consumers with practical and innovative cannabis products. Chemesis intends to add shareholder value by exploring opportunities in other emerging markets while consistently delivering quality products to its consumers from seed to sale.