OTTAWA, ON, Oct. 9, 2020 /CNW/ - Molecule Holdings Inc. (CSE: MLCL) ("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 Biolux Natural Health Inc. ("Biolux") for exclusive production of UbU®, a craft-forward line of CBD-infused sparkling beverages. The Company also announces an agreement to settle outstanding payables.
BINDING TERM SHEET
Molecule will work with Biolux over the coming weeks to execute a definitive agreement. The agreement will set out the terms upon which Molecule will provide product development, licensing, production and distribution services over an exclusive 3 year period.
The UbU® brand will be among the first products produced from Molecule's cannabis beverage facility in Lansdowne, Ontario.
"Biolux has been great to work with, and we have enjoyed the developmental process which culminated in us signing this agreement. This is a significant step toward mutually providing these beverages across all of Canada. Biolux's operational beverage experience, commitment to quality, and attention to detail is remarkable. As well, their overall values are very much aligned with ours," said Phil Waddington, CEO of Molecule.
"As we developed the UbU® brand, we wanted to find a partner as equally committed to crafting premium cannabis products," said Carlos Ponce, Chief Executive Officer of Biolux. "We are pleased to work with Molecule to produce our unique and innovative product line and to accompany Canadian consumers in their wellness journey with high-quality, clean-label CBD beverages."
The Company also wishes to announce that it has agreed to a debt settlement with an arm's length third party, whereby the Company will settle $40,128.90 of outstanding payables through the issuance of 267,526 common shares at a deemed price of $0.15 per common share. All securities issued in the debt settlement will be subject to a statutory hold period expiring four months and one day after the issuance of the common shares.
ON BEHALF OF THE BOARD
MOLECULE HOLDINGS INC.
Per: "Philip Waddington"
President, CEO and Director
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.
About Biolux Natural Health Inc.
Biolux Natural Health Inc., a Montreal-based company founded in 2017, is the producer of UbUⓇ, a craft-forward line of unique CBD-infused sparkling beverages made for the Canadian market. On a mission to naturally empower people to be their best, balanced selves, Biolux leads a new generation of premium beverage developers, committed to crafting clean label cannabis products made for health-conscious consumers. Discover more at drinkubu.ca
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: terms and definitive agreement to be entered into between the Company and Biolux and related matters; and the settlement of debt. 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.
SOURCE Molecule Holdings Inc.
For further information: André Audet, Chairman and Co-Founder, Phone: 1 (888) 665-2853 x101, Email: firstname.lastname@example.org, www.molecule.ca