Vancouver, British Columbia, Canada / TheNewswire / May 13, 2019 - Global Cannabis Applications Corp. ("GCAC" or the "Company") (CSE: APP, FSE: 2FA, OTCQB: FUAPF), a leading developer of innovative data and AI technologies for the medical cannabis industry, is pleased to announce it has signed a Software License Agreement (the "License Agreement") for its Citizen Green Prescriptii Patient-Care Solution ("Prescriptii") with Sequoya Cannabis Ltd. ("Sequoya"), a Canadian medical cannabis distribution & CBD extraction firm with operations in Poland.
Pursuant to the execution of the License Agreement GCAC will become a significant shareholder of Sequoya.
"The Sequoya-GCAC partnership is the completion of our first stage of becoming vertically integrated, leveraging our Citizen Green technology and relationships in the EU and Israel to acquire interests in production, extraction and distribution. We are keen to get to work with Sequoya since they have been developing their business and relationships in Poland since legalization," said Brad Moore, CEO of GCAC. "Poland is an excellent example of the opportunities in the EU and the role GCAC can play. EU regulatory demands for information will be powered by data from Citizen Green technology. The next step of our vertical integration strategy will be working with Israeli Licensed Producers who truly understand the opportunities of medical cannabis from decades of state-sponsored programs in Israel."
"The ability to manage cannabis prescriptions and educate the marketplace on treatments based on research is vital for pharmacies, doctors, and patients. The solution offered by GCAC will give Sequoya Cannabis Ltd a competitive advantage in Poland, as we plan to offer our CBD products and the Prescriptii software as a combined offering, differentiating us from others that offer just a "product" to a full solution. Prescriptii provides Polish pharmacies with a tool to track the prescriptions and treatments as strictly required by law. In addition, it offers market insights that will help pharmacies take advantage of this growing market for medical cannabis which has much higher margins than non-organic medication offered by pharmaceutical companies." Says Shemek Fedyczkowski, CEO of Seqouya Cannabis Ltd.
In addition, GCAC and Grand Rock Capital Inc, ("GRC"), have signed a Letter of Intent ("LOI") to provide capital markets advice and invest in Sequoya to fund the development of a CBD extraction facility in Krakow, Poland. The capital raise and investment are subject to due diligence. Further details will be disclosed after definitive term sheets are executed.
Poland legalized the use of medical cannabis in 2017. With a population of close to 40,000,000 and over 350,000 registered patients, the Polish market is in the early stages of adoption. Poland has implemented strict regulations for distribution of medical cannabis through pharmacies. Sequoya will market Prescriptii to Poland's 13,700 pharmacies to assist them with management of medical cannabis patient treatment, and to collect and analyze medical cannabis data.
Under the License Agreement, Sequoya has the exclusive right to market GCAC's Citizen Green Prescriptii Patient-Care Solution to over 13,700 pharmacies in Poland. For exclusivity, Sequoya shall: i) issue GCAC 5,000,000 common shares of Sequoya; ii) pay GCAC $100,000 by way of convertible debenture; and, iii) pay GCAC a monthly fee based on the number of users. The term of the License Agreement is one-year period with an automatic renewal.
GCAC will also purchase an additional 5,000,000 shares of Sequoya in exchange for 4,000,000 shares of GCAC. Sequoya will grant GCAC an option (the "Option") to purchase 10,000,000 shares of Sequoya for $600,000 for a term of 90 days from the execution of the License Agreement. Subject to regulatory approval GCAC will own 10,000,000 shares of Sequoya and have an option to purchase an additional 10,000,000 shares. Sequoya now has approximately 70,310,000 issued, such that GCAC will own approximately 12.5% of Sequoya and 22% if it exercises the Option.
About Sequoya Cannabis Ltd
Sequoya Cannabis Ltd is a Canadian and European wholesale distributor of Cannabis based products to the Polish market place and Europe in general. Sequoya Cannabis Ltd is presently going to stage 2 of their business plan and preparing to manufacture CBD Isolates and to become a licensed importer for Medical Marijuana and various derivatives for the European marketplace.
About Global Cannabis Applications Corp.
Global Cannabis Applications Corp. is a global leader in designing, developing, marketing and acquiring innovative data technologies for the medical cannabis industry. The Citizen Green platform is the world's first end-to-end - from patient to regulator - medical cannabis data solution. It uses six core technologies: mobile applications, artificial intelligence, regtech, smart databases, blockchain and digital reward tokens, to qualify candidates for clinical studies. These technologies facilitate the proliferation of digital conversations by like-minded people in the medical cannabis community. Managed by digital and cannabis industry experts, GCAC is focused on viral global expansion by providing the best digital experience in the cannabis market.
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This news release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business of GCAC. Forward-looking information is based on certain key expectations and assumptions made by the management of GCAC. Although management of the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because GCAC can give no assurance that they will prove to be correct. Forward-looking statements contained in this news release are made as of the date of this news release. GCAC disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
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