VANCOUVER, British Columbia, Aug. 23, 2018 (GLOBE NEWSWIRE) -- Chemesis International Inc. (CSE:
CSI) (the “Company” or “Chemesis”), a market leader in recreational and medical
cannabis, is proud to announce that it has entered into a definitive agreement to acquire 80% of Natural Ventures PR LLC (“Natural
Ventures”) via its subsidiary Chemesis PR, a 100% Puerto Rican company. The agreement amongst the parties has been submitted to the
Puerto Rico Medical Cannabis Board for approval as per required by its regulatory framework. Natural Ventures is a seed to sale,
medical cannabis company based in Caguas, Puerto Rico, a United States Territory. Natural Ventures represents a significant
opportunity that will catapult Chemesis into position as a leader in both medical and recreational cannabis cultivation and
manufacturing.
Natural Ventures has been operational since early 2017 and currently is expanding to meet its growing patient
demand. Natural Ventures is licensed to cultivate 100,000 sq. ft. of cannabis and has 35,000 sq. ft. of manufacturing floor space
for high quality cannabis products. It is currently producing solvent and CO2 based extraction for its oil-based
products, and it also is producing edibles and other cannabis products.
Puerto Rico legalized medical cannabis for qualifying health conditions in 2015 and permits the use of medical
cannabis derivatives only (e.g., capsules, extractions, lotions, patches, edibles, flower, and oils). Currently, there are 18
pre-approved health conditions including HIV, cancer, multiple sclerosis, migraines, anxiety, and epilepsy that are eligible to be
treated with medical cannabis. Chemesis is poised to meet demand as the island continues to expand the number of qualifying
conditions, and more patients receive permits.
“The acquisition of Natural Ventures is a very significant landmark for Chemesis,” said CEO of Chemesis, Edgar
Montero. “This acquisition gives the company access to a new consumer base as well as additional revenue opportunities. The
operations in Puerto Rico unlock the ability to serve a large population for a variety of medical conditions, while being able to
control costs and quality. The addition of Natural Ventures into the Chemesis family fits into our business model and growth
strategy, as it will not only provide a strong benefit to our revenue stream but will unlock other opportunities in the global
market place that are extremely important,” said Montero.
In exchange for an 80% interest in the capital stock of Natural Ventures PR LLC, the Company will pay
US$2,250,000 cash and US$1,682,085 of stock valued at CAD$1.00 per common share, subject to a 36-month phased lock-up. Closing is
subject to Puerto Rico Medical Cannabis Board approval which is anticipated within 30 days. The Company has also agreed to make a
convertible loan or capital contribution to Natural Ventures in the aggregate amount of US$750,000 on an as-needed basis for
expansion purposes.
About Chemesis International Inc.
Chemesis International Inc. is a vertically integrated global leader in the cannabis industry, with operations
in California and exploring expansion through Latin America.
Chemesis is developing a strong foothold in key markets, from cultivation, to manufacturing, distribution, and
retail. Chemesis has seed to sale operations, 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 products to its consumers from seed to sale.
ON BEHALF OF THE BOARD OF DIRECTORS
Edgar Montero
CEO and Director
INVESTOR RELATIONS:
ir@chemesis.com
www.chemesis.com
1 (604) 398-3378
Forward-Looking Information: This news release contains "forward-looking
information" within the meaning of applicable securities laws relating to statements regarding the Company's business, products and
future the Company’s business, its product offerings and plans for sales and marketing. 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 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.
The CSE has not reviewed, approved or disapproved the content of this press release