Vancouver, BC / TheNewswire / January 4, 2019 - PODA TECHNOLOGIES LTD. ("Poda" or the "Company") is pleased to announce that its Board of Directors has approved a consolidation of its issued and outstanding common shares on the basis of one (new) post-consolidation share for approximately four and one half (old) pre-consolidation common shares resulting in 24.9 million common shares outstanding post-consolidation.
The Company is also pleased to announce that it has entered into a definitive agreement to acquire California Distribution Company ("CDC"), a company with expertise in the cannabis industry and distribution connections in the state of California, for consideration of 17.9 million post-consolidation common shares representing approximately 42% of the Company.
The fair value of CDC is $638,000, which is equal to the amount of cash in the business at acquisition.
"The acquisition of CDC is strategic and represents an increase in the cash position of Poda that we believe accelerates the Company's growth profile and also gives the Company access to the California market," said Ryan Selby, CEO of Poda.
The Company has also granted an aggregate 4,050,000 incentive stock options to certain officers, directors and other eligible persons of the Company. The options are exercisable, subject to vesting provisions, over a period of three years at a price of $0.035 per share.
Additionally, the Company is pleased to announce the appointment of Jon Morrison as the Company's Chief Financial Officer.
Mr. Morrison is a seasoned accounting and financial professional who most recently was Senior Manager of Accounting at Innergex Renewable Energy Inc. Prior to that, he worked at both EY and Deloitte, two of the largest professional services firms in the world, where he led audit engagements for both public and privately held companies from a variety of industries, including the emerging markets.
Mr. Morrison is a Canadian Chartered Professional Accountant (CPA, CA), and holds a Bachelor of Arts from Simon Fraser University.
The company wishes to thank Mr. Easterbrook for his contributions to Poda and his commitment to assisting the Company in reaching its next phase of growth.
"We are extremely pleased to have Mr. Morrison join the Poda team in the role of CFO. Mr. Morrison brings a wealth of financial knowledge and experience and will play an important role as we continue to grow. We anticipate rapid growth over the coming months, and Mr. Morrison will help to provide a stable financial foundation as we raise capital, launch our products, and expand our operations." said Ryan Selby.
On Behalf of the Board,
Chief Executive Officer and Director
Poda is actively engaged in the development and commercialization of vaporizable products, which have the potential to reduce the risks associated with combustible products. In addition to several other intellectual property holdings, the Company has developed an innovative heat-not-burn vaporization system that uses proprietary biodegradable single-use pods, which are both consumer and environmentally friendly. Poda's patent-pending design prevents cross-contamination between the electronic vaporization device and the pod, eliminating all cleaning requirements and providing users with the most convenient and enjoyable potentially risk-reduced vaping experience. Pod refill options range from dried flower and tobacco to liquids and concentrates, and can easily be switched during vaping sessions to suit any adult consumer's mood.
Cautionary Note Regarding Forward-Looking Statements: This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, including statements regarding the successful acquisition of CDC and its anticipated effect on the growth of PODA, are forward-looking statements and contain forward-looking information. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release, including that the acquisition of CDC will be successful and that the acquisition of CDC will have a positive effect on the growth of PODA as anticipated by management. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Important factors that may cause actual results to vary, include, without limitation, that the acquisition of CDC will not be successful or that the acquisition of CDC will not have a positive effect on the growth of PODA. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws.