IRVINE, Calif., March 08, 2018 (GLOBE NEWSWIRE) -- Corix Bioscience Inc. (OTCQB: CXBS), an emerging developer of proprietary cannabis and industrial hemp strains earmarked specifically for use in important healthcare applications, today announced that it has executed a definitive agreement to acquire a 60% interest in OG Group LLC, positioning Corix to play a leading role in the California cannabis market.
Corix CEO Michael Ogburn commented, “We are pleased to team up with the highly-regarded industry leaders at OG Group. This acquisition allows us to put licenses Corix already owns to significant use. OG Group will be utilizing more than $5 million worth of specialty processing equipment to service customer orders. Together we expect to positively impact the entire ecosystem of this business.”
OG Group is purchasing a principal operations facility in Adelanto, California. The building has 1,800 square feet immediately available for processing activities, with substantial room for enlarging to meet customer needs. The real estate also includes ~44,000 square feet that could be used for future cultivation. OG Group is funding all of the purchase and start-up costs of the Adelanto facility and real estate.
CEO Ogburn noted, “The legalization of medicinal and adult-use cannabis in California this year, paired with the cannabis licenses (cultivation, processing and distribution) that Corix holds in Adelanto, makes this acquisition particularly fortuitous and timely. In the context of a current highly-fragmented California market, the acquisition of OG Group could, within a short period of time, result in Corix being the leading cannabis extractor in the state.”
The all-stock acquisition of 60% of OG Group calls for 17,500,000 Corix common shares to be issued to the OG Group shareholders; with 5,000,000 shares issued upon closing the transaction, and 2,500,000 shares to be issued on each subsequent purchase anniversary for five years thereafter.
Further details of the acquisition will be contained in an 8-K filing with the SEC.
About OG Group
OG Group LLC was recently established by several experienced industry leaders who have revolutionized the cannabis distillery and refinery space. Their background in modern technology and molecular science has allowed them to serially invent ground-breaking products that dominate the market.
One recent innovation that has already generated enormous demand is a service designed to assist cultivators in adapting to the regulation changes in California. To protect consumers, the state has toughened its regulations on residual pesticide levels in cannabis. OG Group has developed a unique molecular procedure that removes the residual pesticides, allowing cultivators’ products to be compliant once again, and also safer for their customers.
Utilizing science and technology, OG Group has become a leading innovator in the cannabis industry, achieving levels of quality that have redefined the standards for cannabis-related products.
Corix Bioscience Inc. develops proprietary cannabis and industrial hemp strains using tissue cell cultures to propagate living plants that are free of any pathogen or disease. We grow these plants to maturity and extract the oils, which are the “medicine” part of the plants. Our market focus is on healthcare and we expect to release our initial brand-name products for distribution in the first half of this year.
Our principal executive offices are in Irvine, California. We grow industrial hemp on land we leased near Genoa, Nevada. We are purpose-driven. Our mission is to create superior-quality products in medical-grade facilities, better for both people and the environment. For more information, we invite you to visit us on the Web at www.corixbioscience.com.
Cautionary Note Regarding Forward-Looking Statements
Certain of the statements in this news release that are not statements of historical fact, including, but not limited to, those identified by the use of terms such as "anticipate," "appear," "believe," "could," "estimate," "expect," "hope," "indicate," "intend," "likely," "may," "might," "plan," "potential," "project," "seek," "should," "will," "would," and other variations or negative expressions of these terms, and including statements related to expected market trends and the future business and financial performance of Corix Bioscience Inc., are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties.
Prospective investors are cautioned not to place undue reliance on any forward-looking statements. Statements made regarding the intent, belief or current expectations of Corix are based on assumptions that Corix management believes are reasonable in light of information available on the date hereof, but they are not guarantees of future performance and are subject to a wide range of known and unknown risks, uncertainties and other factors identified in periodic filings made by Corix with the Securities and Exchange Commission.
Actual future results may differ materially from those indicated by present forward-looking statements. Corix Bioscience Inc. disclaims any obligation to update or revise this news release to reflect any change in the company's expectations or any change in events or circumstances after the date hereof, except as required by law.
Source:Corix Bioscience Inc.