VANCOUVER, British Columbia / TheNewswire / September 13, 2018 -- Leis Industries Limited ("Leis" or "The Company") (NEX: LES.H) is pleased to announce that it has entered into a Non-Binding Letter of Intent ("LOI") to acquire all of the issued and outstanding shares of Sechelt Organic Marijuana Inc. ("Sechelt) from Veritas Pharma Inc.
Since July 4, 2014, Sechelt has had an application pending with Health Canada for an ACMPR license for the cultivation/production and processing of 4,500 kilograms per year of marijuana, and in February 2017 received notification that it is in the final review stage of the application. Sechelt has entered into a lease with an option to purchase 0.73 acres of fenced, geo-tech industrial property in an approved jurisdiction to build a two-story facility totaling 20,000 square feet in Sechelt, British Columbia.
The plans for this facility include 6,800 square feet of budding rooms, 3,000 square feet of cloning rooms, as well as a small testing lab and secure storage room. The building will contain a Level 9 safe, which will provide ample room for increased production capacity. The building and the security requirements have been designed and implemented in compliance with Canadian federal government requirements.
Under the terms of the LOI, Leis will pay $350,000 CDN in cash or $350,000 CDN in common shares at a deemed price of the lessor of market price and $0.40 per share to acquire 100% of the outstanding shares of Sechelt. The parties have agreed to evaluate and conduct due diligence prior to the execution of a definitive agreement which must be executed by no later than October 31, 2018.
There are no assurances that a definitive agreement with respect to the proposed transaction will be entered into. Leis will issue a further news release outlining more information with respect to the proposed transaction once a definitive agreement is entered into by the parties.
On Behalf of the Board of Directors
Mr. Michael Konnert
Leis Industries Limited
Certain portions of this press release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation, which is also referred to as "forward-looking statements", which may not be based on historical fact. Wherever possible, words such as "will", "plans," "expects," "targets," "continues", "estimates," "scheduled," "anticipates," "believes," "intends," "may," "could," "would" or might, and the negative of such expressions or statements that certain actions, events or results "may," "could," "would," "might" or "will" be taken, occur or be achieved, have been used to identify forward looking information. Forward looking statements should not be read as guarantees of future events, future performance or results, and will not necessarily be accurate indicators of the times at, or by which, such events, performance or results will be achieved, if achieved at all. Readers should not place undue reliance on such forward-looking statements, as they reflect management's current views with respect to future events and are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Leis, are inherently subject to significant business, economic, regulatory, competitive, political and social uncertainties and contingencies. Many factors could cause Leis' actual results, performance or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements.
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