VANCOUVER, British Columbia, Jan. 19, 2021 (GLOBE NEWSWIRE) — BC Craft Supply Co. Ltd. (the “Company” or “BC Craft”) (CSE: CRFT) (OTC:CRFTF) (FSE:ZZD1) is pleased to announce that it entered into a binding letter of intent (“LOI”) on January 15, 2021, to acquire 100% of the issued and outstanding shares of Ava Pathways Inc. (“Ava Pathways”), from arm’s length parties (the “Acquisition”).
Based in Vancouver, BC, Ava Pathways is an innovative company that is exploring the therapeutic scientific benefits of proprietary formulations, using compounds from mushrooms. Ava Pathways was founded by scientists and researchers focused on neuroplasticity and alternative ways to treat common and debilitating medical conditions such as depression, anxiety, PTSD, and substance use disorder, through the use of psychedelic-based treatments. Similar to craft cannabis, both plant-based treatments require a cultivation supply network to create proprietary strains that produce optimal results for the patient or end-user. Ava Pathways brings exceptional access to tested and standardized naturally-derived and synthetic materials which allows for the production of superior psychoactive and non-psychoactive formulations.
BC Craft has been a pioneer in the craft cannabis sector since pre-legalization and continues that mission by acting as a comprehensive solution partner to other plant-based craft companies while advocating on their behalf. Ava Pathways embodies that same compassionate mentality with the end-users well-being in mind. Ava Pathways has over twenty collective years of experience and relationships in strong pre-clinical and clinical experimental programs that aim to provide patient and data-driven treatment through a robust clinical treatment network, which combine holistic and personalized treatment plans, therapy and education. Ava Pathways is headed up by CEO Dr. Lily Aleksandrova, a published expert in the field; Dr. Aleksandrova completed her Ph.D. in Neuroscience at UBC and boasts 10+ years of research experience in neuroscience, pharmacology and clinical research labs investigating novel neuropsychiatric treatments.
Matthew Watters, CEO of BC Craft stated, “We are delighted by the opportunity to bring Dr. Lily Aleksandrova and Ava Pathways into the BC Craft family, and into the long-term strategic direction of the Company which seeks to commercialize high-end artisanal brands in the cannabis industry, and in the emerging psychedelic space when the legal framework should allow.” Mr. Watters goes on to state, “The LOI with Ava Pathways comes at an opportune time whereby the use of psychedelic compounds such as psilocybin in functional medicine has gained widespread and scientifically backed support from researchers as well as an increased social acceptance from the broader population.”
TERMS OF THE ACQUISITION
Under the terms of the LOI, BC Craft and the shareholders of Ava Pathways will enter into a definitive agreement (the “Definitive Agreement”) pursuant to which BC Craft will acquire all of the ownership interests in Ava Pathways, and Ava Pathways will become a wholly-owned subsidiary of BC Craft. As consideration, BC Craft will issue 38,095,238 units (“Units”) of the Company to the shareholders of Ava Pathways on a pro-rata basis, issued at a deemed value of $0.105 per Unit. Each Unit will be comprised of one common share (each a “Share”) and one transferable common share purchase warrant (each a “Warrant”) that is exercisable to acquire one additional Share at a price of $0.14 for a period of two years from closing. Entering into the Definitive Agreement and closing the Acquisition is conditional on satisfactory due diligence as well as other conditions customary in transactions of this nature, including receipt of regulatory approvals.
ABOUT BC CRAFT SUPPLY CO.
Based in Vancouver, British Columbia, BC Craft Supply Co. has aggregated the best legacy-era talent from Canada’s craft cannabis industry, which boasts an international reputation. The team at BC Craft supports the most talented cannabis cultivators in Canada to transition into their supply chain, bringing with them their unique cultivars and years of experience with the plant. In exchange for support with licensing, compliance and distribution, cultivators will sign on as a BC Craft supplier. This makes BC Craft uniquely positioned to be the premium cannabis brand in Canada.
BC Craft’s subsidiary, Medcann Health Products Ltd., is a Health Canada licensed cultivator and processor with a license to sell medical cannabis products in Canada.
Matthew Watters, Director
DISCLAIMER AND READER ADVISORY
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.
This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking information in this press release includes statements relating to the closing of the acquisition of Ava Pathways, Ava Pathways ability to provide access to tested and standardized naturally-derived and synthetic materials for the production of superior psychoactive and non-psychoactive formulations and the emerging psychedelic space becoming legal and social acceptable from the broader population. Although the Company believes that the material factors, expectations and assumptions expressed in such forward- looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. 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. The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Accordingly, readers should not place undue reliance on forward-looking statements. BC Craft disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.