Reverse Acquisition of Imaging3 Nearing Completion
Burbank, CA, May 20, 2019 (GLOBE NEWSWIRE) -- Imaging3, Inc. (OTCQB:IGNG), (“IGNG” or the “Company”), a development stage company focused on the introduction of disruptive technologies in the medical imaging industry, is further updating its prior announcements regarding its reverse acquisition (the “Acquisition”) by Grapefruit Boulevard Investments, Inc. (“Grapefruit” or “GBI”) a privately held Los Angeles based cannabis company and simultaneous vending of its imaging business into a privately held corporation which will be partially owned by post - Acquisition IGNG .
On May 14, 2019, the California Bureau of Cannabis Control approved Grapefruit for its provisional Adult-Use and Medicinal Cannabis Distribution Licensure after meeting the compliance requirements as mandated by the State of California. In response to this news, Bradley Yourist, Chief Executive Officer, stated: “Grapefruit has effectively moved from temporary licensure passing yet another barrier to achieving the certainty we need to continue to expand into the California cannabis market. Holding a temporary license does not obligate the Bureau to issue a non-temporary license nor does it create a vested right in the granting of a subsequent non-temporary license. Now that we have our provisional distribution licensure, rather than temporary licensure, Grapefruit is well positioned for more rapid growth because we can enter into longer term distribution agreements with licensed cultivators and fellow manufacturers. This new license will allow Grapefruit to capture a more consistent revenue stream in the licensed cannabis market.”
“Furthermore, Grapefruit and its management have sharpened their focus on the ever-expanding CBD hemp compliant market here and abroad. To that end, we are planning several unique CBD Hemp products to be brought to market by a wholly owned subsidiary of Grapefruit. Our team understands the need to rapidly enter the CBD rich hemp space in a well-considered and pragmatic manner while always remaining in compliance with the regulations of the 2018 Farm Act.”
John Hollister, Imaging3 CEO added, “We are assiduously working through the various contracts required to wrap up GBI’s acquisition of IGNG. The tripartite nature of the transaction necessarily including the Investor’s securities purchase agreement and related documents has demanded more time than originally anticipated. Nevertheless we are quite optimistic that the deal will close this week. In the meantime GBI’s efforts to reach its goal continue apace as evidenced by the issuance of an enhanced California license to GBI.”
Potential investors in IGNG’s common shares are cautioned that there can be no assurances that the reverse acquisition of IGNG by GBI will ever be closed and that even if it is, there can be no assurance that the Company will thereafter be able to obtain the financing necessary to achieve its articulated goals and further that even if such financing is obtained that it will be sufficient for the Company to achieve its ultimate goals or to even remain in business.
About Imaging3, Inc.
Imaging3, Inc., founded in 1993, has developed a patented medical imaging technology, called the Dominion SmartScan™, that produces 3D X-ray images, effectively in real time. The SmartScan technology has the potential to allow healthcare professionals to perform diagnostic and therapeutic procedures more quickly and accurately, which may result in higher throughput for the clinicians and fewer safety risks for patients. Imaging3’s technology exposes patients to less harmful radiation than current equivalent imaging technologies such as CT scans. The company believes this will allow scans to be used in many settings where scanning is currently limited by concerns about radiation exposure. The technology also notably allows for reasonably convenient portability, easier installation and use-readiness, and a significantly reduced cost burden suitable for novel settings and for healthcare systems across varied global settings. Imaging3 plans to submit a 510(k) application to FDA during 2019 and or 2020 to gain marketing authorization for initial applications for the SmartScan technology. Visit the company’s website at http://www.imaging3.com for detailed information about the company’s technology.
About GBI
GBI is based in Westwood, Los Angeles, California. GBI holds California licenses to both manufacture and distribute cannabis products and is fully compliant with all applicable laws and regulations to operate such business. GBI has its extraction facility located in the Coachillin’ Industrial Cultivation and Ancillary Canna-Business Park in Desert Hot Springs, located on the extension of North Canyon Rd., approximately 10 miles north of the center of Palm Springs. GBI obtained its California licenses in January of 2018 and commenced distribution of cannabis products in 2018. GBI’s goal is to become a seed to sale vertically integrated cannabis and CBD product Company. Grapefruit Boulevard Investments, Inc. has it owns lines of edibles called “Sugar Stoned” and will be launching additional edible lines in 2019 and Grapefruit’s very own line of CBD and THC blended vape cartridge pens to the compliant markets. To obtain further information on Grapefruit, please visit its website at http://grapefruitblvd.com
Safe Harbor Statement
Imaging3 cautions you that any statement included in this press release that is not a description of historical facts is a forward-looking statement. Many of these forward-looking statements contain the words "anticipate," "believe," "estimate," "may" "intend," "expect" and similar expressions. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the company and are subject to a number of risks and uncertainties inherent in the Imaging3’s business, including, without limitation: the company may not ever obtain FDA approval for any of its devices; the company may not be able to secure the funds necessary to support its product development plans; and the company may not ever achieve the market success to sustain a profitable business. In addition, there are risks and uncertainties related to economic recession or terrorist actions, competition from much larger imaging companies, technological obsolescence, unexpected costs and delays, potential product liability claims, and many other factors. More detailed information about Imaging3 and the risk factors that may affect the realization of forward-looking statements is set forth in the company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K and its Quarterly Report on Form 10-Q. Such documents may be read free of charge on the SEC’s website at www.sec.gov. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and Imaging3 undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.
Investor Relations Contact:
John Hollister
Chief Executive Officer
4919 Noeline Ave., Los Angeles, CA 91436
(805) 908-5719
info@imaging3.com
