TORONTO, Aug. 17, 2018 (GLOBE NEWSWIRE) -- Platinex Inc. (CSE:PTX) ("Platinex"
or the "Company") wishes to provide an update on various activities that the Company has been pursuing.
Oregon Projects Update
As announced in the press release in January 31, 2018, the Company has closed an acquisition of a royalty
interest in Dave's Space Cakes LLC ("DSC"), a company which owns the intellectual property to a line of
cannabis-infused brownies and an acquisition of a 51% interest in Intergalactic Foods LLC ("IGF"), a company which
obtained a cannabis processing license from the Oregon Liquor Control Commission ("OLCC") in April 2018. The
products, to which DSC has rights are being manufactured in the facility that is being leased by IGF in Eugene, OR and the sales
have been ramping up since IGF commenced operations. The operation is close to breakeven and once it achieves positive cashflow the
Company expects that a royalty payment will be made to the Company by DSC.
While there have been normal startup hurdles that both DSC and IGF have experienced, Platinex management
is optimistic on the future potential of the business as DSC develops and rolls out new product lines and as IGF expands its
manufacturing capabilities. The Company continues to work with the principal of IGF and DSC to explore ways to create value and
ramp up sales.
Walter Henry, CEO of Platinex commented – "We're pleased with the progress DSC and IGF have made in a relatively
short time frame. We remain optimistic on the potential of the licensed cannabis-infused product market in the State of Oregon and
are exploring new ways of assisting DSC and IGF with achieving a stronger foothold. As the dynamics of the Oregon market continue
to evolve, we aim to work with our partners to assist them in establishing a strong position in the niches where they operate."
Revised terms under Glas Huis LOI
The letter of intent ("LOI") with Glas Huis (Press Release dated April 4, 2018) has been
renegotiated extending the closing date of the Definitive Agreement until September 30, 2018 and changing the terms whereby
Platinex can increase its initial 51% interest in Glas Huis to 60% by expending US$1.5 million over 6 months beginning September
2018 and granting 500,000 options versus the issuance of 500,000 shares of Platinex. The initial expenditures by the Company for
the second half of 2018 are estimated at approximately US$160,000. The LOI provides conditions which are customary for this type of
transaction, including regulatory approvals and Platinex completing the change of business ("COB") pursuant to the
policies of the Canadian Securities Exchange ("CSE").
Glas Huis is a 10 time award winning company: 4 of those awards are based on analytical laboratory results
for the highest THC and Terpene content (like a "best in show"). The Principal and Co-Founder of Glas Huis, Lindsey Pate
was recently featured in Marijuana Venture Magazine's Annual "40 Under 40, Rising Stars of Cannabis".
Cash Flow Investment and Cannabis Royalties Search
The Company believes that the cannabis businesses in the United States continue to face significant challenges
to source and secure capital funding for their projects. The Company is continuing its search for new cannabis related cash flow
and royalty investment opportunities. The Company's preference is to invest in the current or near-term cash flow of cannabis
operations in which the debt capital can be used by a business to re-invest in or grow its respective operations or product
lines.
Platinex is also currently negotiating with other parties to make investments in cash flowing cannabis related
operations. The funding of these investments will initially be provided as debt arrangements provided on behalf of the
Company, where the repayments will be offset by the respective cash flows acquired. Platinex management is confident that
there are numerous suitable opportunities in various cannabis markets for the Company to expand such investments based on positive
interest expressed to date.
In addition, the Company has also received interest from both private debt providers and third-party lenders to
fund this type of investment strategy in conjunction with Platinex.
With the earlier announcement the Company of three new directors with solid cannabis experience, (see press
release dated August 2, 2018), the Company will now have significant insight into the cannabis market as it evaluates all future
opportunities. The Company's formal guidelines regarding its due diligence process is being developed and will be implemented
as the Company continues to work to complete the COB.
While the Company continues to seek potential investment and acquisition targets, it continues to operate as a
mining issuer under the policies of the CSE and intends to continue to do so until it completes the COB and obtains other requisite
regulatory approvals. There is no assurance that the proposed acquisitions by the Company will be successfully completed on
favorable terms or at all, or that it will secure requisite approvals.
Grant of Options
The Company also wishes to announce that it has granted an aggregate of 600,000 stock options under its stock
option plan to existing directors and officers of the Company. All of the options are exercisable at a price of $0.07 per share and
have a term of 5 years.
Name |
Title |
Options
Granted |
Jim
Trusler |
Chairman |
150,000 |
Walter
Henry |
President & CEO |
150,000 |
Lorne
Burden |
Director |
200,000 |
Lori
Paradis |
Officer |
100,000 |
Seeking Alternatives for the Shining Tree Property Due to Market Interest
Platinex also announces that since the filing on SEDAR of a National Instrument 43-101 Technical Report on the
Shining Tree Property, the Company has received several unsolicited inquiries expressing interest in the Shining Tree property. The
Company will continue to evaluate all potential investment inquires with a view to maximizing shareholder value on this property.
At this time, Shining Tree Property continues to be the Company's main asset.
The Shining Tree property comprises 130 contiguous mineral claims (876 claim units), covering approximately
14,016 ha, and is situated approximately 600 km (by road) north of Toronto, and 40 km south-southwest of the Town of Gowganda, in
the Larder Lake Mining Division of Ontario.
About Platinex Inc.
Platinex has been focusing its mining business efforts to assemble a very large property in the Shining Tree
gold camp, which has received little modern exploration compared to other gold camps in the Abitibi greenstone Belt. At the same
time, Platinex is focused on developing various strategies to capitalize on the lucrative growth of the Cannabis industry in North
America. Common Shares of Platinex are listed for trading on the Canadian Securities Exchange under the symbol "PTX".
For further information, please contact:
Walter Henry, President and CEO
416-414-5825
Email: info@platinex.com
David Posner
647-985-6727
Email: dposner44@gmail.com
To receive Company press releases, please email lparadis@platinex.com and mention “Platinex press release” on the
subject line.
FORWARD-LOOKING STATEMENTS:
This news release may contain forward-looking statements and information based on current expectations. These statements
should not be read as guarantees of future performance or results. Such statements involve known and unknown risks,
uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those
implied by such statements. Such statements include submission of the relevant documentation within the required timeframe
and to the satisfaction of the relevant regulators, completing the acquisition of the applicable assets and raising sufficient
financing to complete the Company's business strategy. There is no certainty that any of these events will occur.
Although such statements are based on management's reasonable assumptions, there can be no assurance that such assumptions will
prove to be correct. We assume no responsibility to update or revise them to reflect new events or circumstances.
Investing into early stage companies, inherently carries a high degree of risk and investment into
securities of the Company shall be considered highly speculative. Furthermore, the Company seeks to enter the cannabis market
in the United States, where some states have legalized cannabis for medical or adult recreational use, while cannabis remain
illegal under United States Federal law. As such, the Company may become subject to additional government regulation and
legal uncertainties that could restrict the demand for its services or increase its cost of doing business, thereby adversely
affecting its financial results.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall
there be any sale of the securities in any province in which such offer, solicitation or sale would be unlawful. The
securities issued, or to be issued, under the Private Placement have not been, and will not be, registered under the United States
Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable
exemption from registration requirements.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined
in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.