January 26, 2020 - TheNewswire - Ottawa, Ontario – Molecule Holdings Inc. (CSE:MLCL) (CNSX:MLCL.CN) (“Molecule” or the “Company”), a Canadian craft-focused cannabis beverage production company, is pleased to announce that it has signed a binding term sheet with Vortex Cannabis Inc. (“Vortex”). This sets out the terms of a service agreement (the “Service Agreement”), whereby Vortex will sell products produced by Molecule to the provincial retailers of cannabis products (the “Provincial Retailers”). The agreement allows Molecule to begin selling its unique line of cannabis infused beverages throughout Canada, starting initially with Ontario and Québec.
“This is perhaps the most important piece of news we have shared, as working with Vortex enables us to now begin selling products to Provincial retailers across the country. We are excited to have crossed this regulatory hurdle and move into full scale production and sale. We are thankful to Tony and the Vortex team as we begin working together delivering the craft shelf of cannabis beverages to Canadians,” said President and CEO, Phil Waddington.
Under the terms of the Service Agreement, Molecule will pay a percentage of revenues to Vortex for its services. The initial term of the Service Agreement covers 6 months, providing for an extension as required.
“Our agreement with Molecule is evidence of the national scale that Vortex has achieved in its cannabis 2.0 development. We look forward to progressing our relationship with Molecule beyond this important milestone,” said Tony Machias, President of Vortex.
Molecule Inc. currently holds a Standard Processing Licence issued by Health Canada (the “Licence”), which allows Molecule to manufacture cannabis-infused products and sell them to other Licenced Producers (LPs). A Processing Licence requires an amendment to allow processors to sell cannabis products directly to the Provincial Retailers (the “Sales Amendment”). Rather than waiting until the Sales Amendment is issued, this Service Agreement allows Molecule to bring its unique line of cannabis infused beverage products to market through Vortex, while completing its own sales amendment application. Molecule and Vortex anticipate continuing to work together on an ongoing basis.
ON BEHALF OF THE BOARD
MOLECULE HOLDINGS INC.
Per: “Philip Waddington”
President, CEO and Director
For further information, please contact:
André Audet, Chairman and Co-Founder
Phone: 1 (888) 665-2853 x101
About Molecule Holdings Inc.
Molecule works with client-partners to engage in the production of cannabis-infused beverages and edibles. We provide the infrastructure, know-how, technology, and licensing for craft producers to create consumable cannabis products. Molecule’s goal is to be the on-ramp for companies wishing to enter into the cannabis beverage and edibles market, but who choose not to go through the significant process of obtaining the required cannabis licences.
Neither the Canadian Securities Exchange nor its regulation services provider accepts responsibility for the adequacy or accuracy of this press release.
Certain statements contained in this news release may constitute forward-looking information.
Forward-looking information is often, 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 or events to differ materially from those anticipated in such forward-looking information. The Company's actual results could differ materially from those anticipated in this forward-looking information as a result of regulatory decisions, competitive factors in the industries in which the Company operates, prevailing economic conditions, and other factors, many of which are beyond the control of the Company. In this news release, the Company is making forward-looking statements with respect to delivering cannabis beverage products, the agreement to be entered into with Vortex, and its own sales amendment. The Company believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon. Any forward-looking information contained in this news release represents the Company's expectations as of the date hereof and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.
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