TORONTO, ONTARIO- Cura-Can Health Corp. (“Cura-Can” or the “Company”), a private, federally incorporated company, is pleased to announce that it has entered into a subscription, patient referral and support agreement (the “Agreement”) with a private Ontario corporation (“PrivateCo”), resulting in Cura-Can securing a $3.0 million lead order, subject to certain conditions, with respect to its previously announced private placement.
In addition to the subscription for 3,000,000 common shares in the capital of the Company by PrivateCo, pursuant to the terms of the Agreement, Cura-Can will receive a fee from PrivateCo for each patient that is referred by Cura-Can to a licensed producer that has partnered with PrivateCo (a “Partner LP”) for the provision of medical cannabis products to patients permitted to purchase such products under the Health Canada regulations. Cura-Can will also receive a referral fee from PrivateCo for existing patients who currently purchase medical cannabis products from Partner LP’s, all subject to regulatory and other legal requirements.
Cura-Can President and Chief Executive Officer, Michael Steele, commented, “This strategic relationship positions the Company to complete its national clinic consolidation and the launch of high-value cannabis and hemp-based products to its medical and non-medical clients under its ‘SELECT’ house brand.”
Cura-Can is a private Canadian-based business focusing on the development of unique high quality CBD medicinal products for distribution within the Canadian and approved international markets. Cura-Can is developing a unique series of distribution platforms for its SELECT house-branded CBD products through its corporately owned cannabis clinics across Canada, as well as joint ventures with various market leading medical clinic and pain management networks. Cura-Can will also be working collaboratively with licensed producer’s in Canada, in marketing SELECT products to the LP client population.
This press release is not an offer of securities of the Company for sale in the United States. The Common Shares of the Company have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and the Common Shares may not be offered or sold in the United States except pursuant to an applicable exemption from such registration. No public offering of securities is being made in the United States.
The Company continues to be in the early stages of evaluating potential opportunities only, and has not entered into any preliminary or definitive form of agreement that would result in the Company entering into the hemp/cannabinoid industry as a licensed producer, nor can there be any assurance that such an agreement will be reached in the future. The Company clarifies and confirms that it is not a licensed producer and has no present intention of filing an application with Health Canada to become a licensed producer under the Access to Cannabis for Medical Purposes Regulations (“ACMPR”). Any transaction resulting in the Company’s entry in the hemp/cannabinoid industry will require various approvals, including that of the Company’s board of directors, shareholders and any relevant stock exchange, and none of these approvals have been sought at present. The licensing requirements of Health Canada under the ACMPR are stringent and must be complied with before any license is granted by Health Canada under the ACMPR pursuant to which the Company could produce and sell products permitted by the ACMPR, which requirements include the construction of facilities meeting specified ACMPR criteria and the Company successfully passing a site inspection by Health Canada of such facilities.
Source: Cura-Can Health Corp.