(TheNewswire)
January 26, 2020 - TheNewswire - Ottawa, Ontario – Molecule Holdings Inc. (CSE:MLCL) (CNSX:MLCL.CN) (“ Molecule ” or the“ Company ”), a Canadian craft-focused cannabis beverage productioncompany, is pleased to announce that it has signed a binding termsheet with Vortex Cannabis Inc. (“ Vortex ”). Thissets out the terms of a service agreement (the “Service Agreement” ), whereby Vortex will sell products produced by Molecule tothe provincial retailers of cannabis products (the “Provincial Retailers” ). The agreement allows Molecule to begin selling its uniqueline of cannabis infused beverages throughout Canada, startinginitially with Ontario and Québec.
“ This is perhaps the mostimportant piece of news we have shared , asworking with Vortex enables us to now begin selling products toProvincial retailers across the country. We are excited to havecrossed this regulatory hurdle and move into full scale production andsale. We are thankful to Tony and the Vortex team as we beginworking together delivering the craft shelf of cannabis beverages toCanadians,” said President and CEO, Phil Waddington.
Under the terms of the Service Agreement, Molecule willpay a percentage of revenues to Vortex for its services. The initialterm of the Service Agreement covers 6 months, providing for anextension as required.
“Our agreement with Molecule is evidence of thenational scale that Vortex has achieved in its cannabis 2.0development. We look forward to progressing our relationship withMolecule beyond this important milestone,” said Tony Machias,President of Vortex.
Molecule Inc. currently holds a Standard ProcessingLicence issued by Health Canada (the “Licence” ), whichallows Molecule to manufacture cannabis-infused products and sell themto other Licenced Producers (LPs). A Processing Licence requires anamendment to allow processors to sell cannabis products directly tothe Provincial Retailers (the “ Sales Amendment ”). Rather than waitinguntil the Sales Amendment is issued, this Service Agreement allowsMolecule to bring its unique line of cannabis infused beverageproducts to market through Vortex, while completing its own salesamendment application. Molecule and Vortex anticipate continuing towork together on an ongoing basis.
ON BEHALF OF THE BOARD
MOLECULE HOLDINGS INC.
Per: “ PhilipWaddington ”
President, CEO and Director
For further information, pleasecontact:
André Audet, Chairman andCo-Founder
Phone: 1 (888) 665-2853 x101
Email: andre@molecule.ca
About Molecule Holdings Inc.
Molecule works with client-partners to engage in theproduction of cannabis-infused beverages and edibles. We provide theinfrastructure, know-how, technology, and licensing for craftproducers to create consumable cannabis products. Molecule’s goal isto be the on-ramp for companies wishing to enter into the cannabisbeverage and edibles market, but who choose not to go through thesignificant process of obtaining the required cannabislicences.
Neither the Canadian SecuritiesExchange nor its regulation services provider accepts responsibilityfor the adequacy or accuracy of this press release.
Forward-Looking Statements
Certain statements contained in thisnews release may constitute forward-looking information.
Forward-looking information isoften, but not always, identified by the use of words such as"anticipate", "plan", "estimate","expect", "may", "will","intend", "should", and similar expressions.Forward-looking information involves known and unknown risks,uncertainties and other factors that may cause actual results orevents to differ materially from those anticipated in suchforward-looking information. The Company's actual results could differmaterially from those anticipated in this forward-looking informationas a result of regulatory decisions, competitive factors in theindustries in which the Company operates, prevailing economicconditions, and other factors, many of which are beyond the control ofthe Company. In this news release, the Company is makingforward-looking statements with respect to delivering cannabisbeverage products, the agreement to be entered into with Vortex, andits own sales amendment. The Company believes that the expectationsreflected in the forward-looking information are reasonable, but noassurance can be given that these expectations will prove to becorrect and such forward-looking information should not be undulyrelied upon. Any forward-looking information contained in this newsrelease represents the Company's expectations as of the date hereof and is subject tochange after such date. The Company disclaims any intention orobligation to update or revise any forward-looking information whetheras a result of new information, future events or otherwise, except asrequired by applicable securities legislation.
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