VANCOUVER, British Columbia, May 27, 2019 (GLOBE NEWSWIRE) — ICC International Cannabis Corp. (CSE:WRLD.U) (8K51.F) (WLDCF) (“ICC” or “International Cannabis” or the “Company”)) is pleased to announce the Company has secured the exclusive European master license to the Affinity Alpha Unit (“Affinity Technology” or “Affinity Unit”), a revolutionary cannabinoid extraction system. The Affinity Unit deploys a two-phase extraction process to facilitate the mass production of highly purified THC, CBD, CBG and terpene extracts at 10 times (“10x”) the throughput of conventional extraction technologies.
The Affinity Unit leverages patented and proprietary molecular imprinting (“MIP”) and advanced processing nanotechnologies to provide:
- Near-quantitative levels of purity;
- Product uniformity and predictability;
- Improved durability;
- Continuous process flow; and,
- Nil production bottlenecks.
International Cannabis plans to integrate the Affinity Unit into its vertically integrated cannabis asset portfolio spanning 20 countries across 4 continents; resulting in optimized production efficacy of its proprietary formulations and form factors.
Developed by Atom Energy Inc. (“Atom”), in collaboration with Sixth Wave Innovations Inc. (“6W”) the Affinity Unit leverages a portfolio of patented 6W technologies uniquely formulated for high volume inorganic applications. 6W has amassed patents in over 40 countries for its proprietary MIP and advanced processing nanotechnologies.
The Company will also leverage the Affinity Unit to expedite post harvest production of finished goods from of its existing extraction-ready CBD inventories in Germany, Switzerland, Serbia and Croatia.
The Affinity Unit’s industry leading throughput, coupled with the Company’s feed stock inventories and supply agreements will equip ICC with a secure pipeline of superior CBD concentrates and hemp oils for the distribution with commensurate cost-savings and virtually unlimited scalability. Moreover, cannabinoid losses associated with existing process steps to get to isolate will be virtually eliminated using Affinity Technology increasing yield by 40-50% depending on implementation.
A comprehensive bolt-on extraction platform, the Affinity Unit is designed to seamlessly integrate into existing industry production circuits. The Affinity Unit is equipped with automated extraction infrastructure and advanced standard operating procedures (“SOPs”), resulting in:
- Reduced capital and operating expenditures;
- Consolidated extraction stages/phases into a unified, intuitive operating unit boasting a continuous internal-extraction circuit without intermediate batch processing prerequisites
- Streamlined processes to convert raw plant extracts into highly purified/separated THC, CBD and terpene extracts;
- High volume production capabilities;
- Efficient processing of mass inputs for all varieties of feed stock
- Improved extraction efficacy and standardization;
- Precise total quality management methodologies;
- Advanced assurance of safety protocols; and,
- Improved scalability.
David Shpilt, Chief Executive Officer of International Cannabis stated: “The integration of the Affinity Unit across ICC’s global operating units will optimize ICC’s multi-pronged CBD strategy, thereby maximizing rents while cornering high growth consumer segments. A proprietary two-phase extraction process, equipped with 10x the conventional industry throughput will permit ICC to bring its superior product formulations to market at an expedited rate; further actualizing its first mover reputation across the EU.
“Access to the exclusive master license arms International Cannabis with the capability to monetize each and every deployment of the Affinity Unit across the EU.”
Under the terms of the ROFR, ICC has been granted the first-in-line option to acquire the exclusive master licensing rights (the “Master Rights”) for the deployment and use of the Affinity Technology throughout the Sovereign States and Dependent Territories of Europe (the “Master Territory”).
The Master Rights, to be fully defined in a mutually agreeable Master License Agreement (“MLA”) to be executed by the parties concurrent with the execution of the ROFR, and will allow the following exclusive rights to accrue to ICC:
(i) Direct Use License – A license to deploy the Affinity Technology on a direct-use basis via ICC-operated facilities within the Master Territory.
(ii) Authority to Sub License – The authority to grant sub licenses for the use of the Affinity Technology throughout the Master Territory (the “Sub Licenses”), and to collect a metered royalty rate based on the biomass volumes processed by all Sub Licensees using the Affinity Technology platform.
Under the terms of the ROFR and subject to the completion of mutually agreeable license agreements between the parties pertaining to special strategic process locations, ICC will have additional license rights not contemplated by the Master Territory:
(i) India – The right to establish ICC-operated facilities within the Republic of India, without the obligation or right of sub licensing. ICC has additionally been granted first-mover status within India, with an option to install the first Affinity Technology processing site within that jurisdiction, ahead of all other prospective licensees.
(ii) Greece – The parties have agreed that Greece will be a special exclusion from the defined Master Territory, with ICC having the right to establish ICC-operated facilities in that jurisdiction, without the obligation or right of sub licensing.
Under the terms of the Agreement, ICC has agreed to pay $3,500,000 in common shares in the capital of ICC upon the exercise of the ROFR and the concurrent MLA (the “Consideration”). As a condition precedent of the payment of the Consideration, Atom has agreed to deliver the first Affinity purification unit to ICC for use within the Master Territory, to the satisfaction of ICC.
In addition to the foregoing, ICC has agreed to invest $1,500,000 in Atom at an issue price of $0.75 per share, to close on or before May 31, 2019.
A finder’s fee is payable on this transaction.
ABOUT INTERNATIONAL CANNABIS
ICC International Cannabis, through its subsidiaries, has operating assets and is developing a world-class platform for cultivation, extraction, formulation and distribution across the globe in the United Kingdom, Denmark, Poland, Switzerland, Germany, Macedonia, Bulgaria, Serbia, Croatia, Greece, Italy, Portugal, Malta, Colombia, Argentina, Australia, South Africa and Lesotho.
ON BEHALF OF THE ICC INTERNATIONAL CANNABIS CORP BOARD OF DIRECTORS
Chief Executive Officer
+001 (604) 687-2038
|Investor Relations Contact:||For ICC French inquiries:|
|[email protected]||Remy Scalabrini, Maricom Inc.|
|+001 (416) 597-5769||E: [email protected] T: +001 (888) 585-MARI|
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Notice Regarding Forward Looking Information:
This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or information that certain events or conditions “may” or “will” occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking information includes, but is not limited to: political changes in Canada and internationally, future legislative and regulatory developments involving cannabis in Canada and internationally, the Company’s ability to secure distribution channels in international jurisdictions, competition and other risks affecting the Company in particular and the cannabis industry generally.
The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.