SCOTTSDALE, Ariz., March 21, 2018 (GLOBE NEWSWIRE) -- Airware Labs Corporation (OTC:AIRW) (“Airware” or the “Company”) today announced the closing of its acquisition of BSSD Group, LLC, doing business as Item 9 Labs, completed through a share exchange agreement. The Company previously announced its intention to acquire Item 9 Labs in a non-binding letter of intent. As part of the transaction, Airware closed on a material definitive financing agreement in the principal amount of $1 million. The gross proceeds will be used by the Company for general working capital purposes.
Item 9 Labs owns the largest approved manufacturing and cultivation area in the U.S. with 50 acres in Southern Arizona. Currently, Item 9 is utilizing five acres and intends to implement the remaining 45 acres in accordance with its three-year strategic plan. The property includes a 10,000 square foot, state-of-the-art manufacturing facility with 10,000 square feet of additional capacity already under construction. The additional capacity will include a commercial kitchen for infused co-branded products. As part of its growth strategy, the Company is in the process of opening additional cultivation and extraction locations in Massachusetts. Presently, Item 9 has an annualized revenue run rate of approximately $3 million.
Bryce Skalla, Co-Founder & CEO of Item 9 Labs, commented, “We are pleased to have closed on our previously announced transaction with Airware Labs, combining a high-quality, medical-grade product, with a unique, proprietary delivery platform, for the first time in the industry. Item 9 will utilize Airware Labs proprietary technology to create a first to market medicated nasal delivery device that provides specific cannabinoid dosing utilizing the nasal mucus-membrane. The groundbreaking method of administration will revolutionize the Cannabis sector, positioning Item 9 as an industry leader in the Cannabis Bio-Medical space.”
“Since its inception, Airware has developed a comprehensive array of air filtration and nasal dilation products utilizing our patented IP as a nasal delivery device to effectively deliver Cannabinoids into the human body. We look forward to collaborating with the Item 9 team and their proven high quality medical marijuana products. Together, we will continue to promote improved airflow for increased metabolism, improved circulation and detoxification and to support better overall health,” said Jeffrey Rassas, CEO of Airware Labs Corp.
About Item 9 Labs:
Item 9 Labs is an Arizona-based cannabis consulting company with a proven record of high quality medical marijuana flower and products focused on organic cost-effective solutions for whole body health. Item 9 Labs owns and operates 50 acres in Southern Arizona, the largest property zoned to grow and cultivate the medical marijuana flower. Many cannabis manufacturers have moved their focus to hydroponic techniques that utilize harsh chemicals and nutrients, hindering the bioavailability of their product. Item 9 Labs maintains plant derived natural soil media and nutrient regiments, which it believes generates a superior product through enhanced taste, smell, and effect increasing customer demand. As a direct result of these organic farming techniques, Item 9 Labs' medicine sells at a price that is 5-10% higher than its state competitors.
About Airware Labs Corporation:
Airware Labs Corp's products are patented and address key consumer health and quality of life challenges including intra-nasal delivery of drugs and therapeutic oils. Airware products provide relief from snoring, insomnia, nausea, headaches, airborne bacteria and viruses, allergies and congestion. The Airware lineup also includes sports performance products. Unlike external products such as nasal strips, these soft, comfortable, and discreet, latex and drug free products fit just inside the nose utilizing an FDA approved medical grade material. Nearly invisible for use anytime and anywhere, the Airware Labs products' microstructure enhances normal nasal airflow with every breath. Some Airware products include 3M filtration media to stop allergens, airborne bacteria and viruses as well as a blend of proven, therapeutic premium oils to provide additional antimicrobial protection and symptomatic relief.
Airware Labs previously announced the availability of its Airware Defense product in South Korea marking another milestone in its growing success in expanding product sales in international as well as domestic markets. Airware Labs announced prestigious retail outlets in India and China are now selling Airware Labs' products. Domestically, the Company's pioneering products are available through a number of brick and mortar retail locations including Walgreens, Albertsons, Acme, Shoppers, Shop n' Save, ACME, and Farm Fresh along with individual distributors in the United States, Canada, and Europe. Online the products are available at a variety of retail sites including Walmart, Walgreens, Target, Drugstore.com, CVS, Amazon and Airware Labs Corp.
Airware Labs Corp. (publicly traded as OTC: AIRW) provides patented, innovative breathing and intra-nasal deliver technology products that promote better health and enhanced wellbeing. The company is headquartered in Scottsdale, Arizona. Explore our extensive product line at http://www.airwarelabs.com and learn more about our company by visiting http://airwarelabscorp.com.
Forward-Looking Statement: The statements in this press release regarding any implied or perceived benefits from the release by Airware Labs Corp. of its products and matters involving or proposed with Item 9 Labs are forward-looking statements. Such statements involve risks and uncertainties, including, but not limited to, risks and effects of legal and administrative proceedings and governmental regulation, especially in a foreign country, future financial and operational results, competition, general economic conditions, proposed transactions that are not legally binding obligations of the company and the ability to manage and continue growth. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include the introduction of new technology, market conditions and those set forth in reports or documents we file from time to time with the SEC. Information related to Item 9 Labs has been provided directly by Item 9 Labs and Airware Labs Corp. has not independently verified any of the information provided. We undertake no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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