TORONTO, ON / ACCESSWIRE / April 13, 2015 / The Canadian Bioceutical Corporation ("BCC") (TSX VENTURE: BCC.V) is pleased to announce that it has entered into an asset purchase agreement dated April 7, 2015 (the "Agreement") to acquire all of the operating assets in relation to the brand FertaMax(TM), a natural health product that helps maximize human fertility.
The maximum aggregate consideration that may become payable by BCC to True Brands Inc., an Ontario corporation and the owner of the FertaMax assets, is the cash amount of $80,000 CAD.
Approximately half of the aggregate purchase price is payable from the proceeds of the sale of existing inventory. The remainder of the purchase price is payable in the form of a ten percent (10%) royalty on the gross sales consummated subsequent to the effective date of the transaction.
The purchased FertaMax assets that will be transferred to CGX immediately include all existing inventory (approximately 3,000 units), the www.fertamax.com website and all rights to the FertaMax(TM) intellectual property including the brand name and all related marketing materials.
FertaMax will be sold in the United States under the auspices of CGX Life Sciences Inc., a wholly-owned subsidiary of BCC, utilizing existing sales and fullfillment channels. Negotiations are also in progress for distribution of FertaMax in other countries through an international sales organization.
Scott Boyes, President & CEO of BCC commented, "although management is focussed on entering into the medical marijuana industry and developing cannabis-based nutraceuticals, FertaMax broadens our product offerings and provides another positive step to building shareholder value. It should be almost immediately accretive to earnings."
This acquisition represents BCC's further vertical integration into the natural health products industry.
Michael Arnkvarn, BCC's Chief Marketing Officer added, "We are very pleased to announce the signing of this agreement. FertaMax compliments our other natural health product offerings and we expect that FertaMax will significantly increase our revenue base. We see great market potential in this product and interest for this product is quite high."
FertaMax is a multi-vitamin supplement designed to assist couples conceive and have healthy pregnancies that result in healthy babies. FertaMax has an all-natural, gender-specific formulatiion containing the ideal ingredients recommended to bring prospective parents to the peak of their fertility. FertaMax will also help keep mothers' bodies healthy during pregnancy and help bodies recover after giving birth.
About The Canadian Bioceutical Corporation
BCC, formerly Allegiance Equity Corporation, is an Ontario corporation that, for over two decades has been developing unique standardized mass-market nutraceutical products for the treatment of common ailments where present pharmaceutical treatments and over-the-counter products fail to meet the needs of patients. BCC has targeted markets having clearly identified product deficiencies and dissatisfied consumers afflicted with a variety of medical conditions. BCC obtains regulatory approval and patents for these unique compounds and formulations and may produce and distribute or license its products for royalty revenues.
BCC's principal brands are CinG-X(TM) and ReliévaTM and the company, through its subsidiary BioCannabis Products Ltd. and, subsequent to receiving its MMPR license from Health Canada and the potential revision of these regulations, BioCannabis intends to develop and market a series of new cannabis-based branded medicinal products to address this rapidly-evolving market.
Additional details in relation to BCC's plan to enter into the medical marijuana sector may be found in the company's two News Releases of January 7, 2015.
CSA Investor Caution
Investors should be aware that companies cannot legally conduct a medical marijuana business without a license from Health Canada and that there is significant time and cost required to obtain such a license. As a publicly-traded company publicizing its intention to enter the medical marijuana industry, BCC urges potential investors in any company in this sector, to become familiar with the required resources and the related risks, costs implications and time required before a company will be able to begin licensed operations. There is no assurance that any company announcing its intent to enter the medical marijuana industry will be successful in obtaining a license or in creating shareholder value.
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, the Transaction and BCC's objectives and intentions. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in BCC's public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Although BCC believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, BCC disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the Policies of the Exchange) accepts responsibility of the adequacy or accuracy of this release.
For further information please contact:
Scott Boyes, President and CEO
scott@canadianbioceutical.com
(416) 840-4703
SOURCE: The Canadian Bioceutical Corporation