TORONTO, ON / ACCESSWIRE / February 2, 2017 / Xylitol Canada Inc. (TSX-V: XYL) (OTC PINK: XYLTF) ("Xylitol" or the "Corporation") is pleased to announce that it has entered into a non-binding term sheet (the "Term Sheet") with Nektar Naturals Holdings, Inc. ("Nektar") for the acquisition of Nektar by the Corporation. Pursuant to the Term Sheet, Xylitol will acquire 100% of the issued and outstanding common shares of Nektar. The consideration will be CDN $715,000, plus the assumption of certain debt obligations, to be satisfied through the issuance of common shares of the Corporation.
Nektar is a Delaware corporation operating in the United States that markets natural sweetener products, including Nektar Honey Crystals in bottle form and in on-the-go packets. Nektar's products are made from all natural cane sugar and natural honey, which allows consumers to flavor foods and beverages without the mess of traditional liquid honey. Management feels Nektar's products will complement Xylitol's current offerings in the natural sweetener market.
Prior to closing the acquisition of Nektar, the Corporation intends to complete its private placement for gross proceeds of up to CAD $3,000,000 (the "Financing") that was previously announced by press release on November 3, 2016. Immediately prior thereto, Xylitol will complete its previously announced share consolidation (the "Consolidation") on the basis of one new common share for every 5 common shares currently issued and outstanding. Xylitol expects the Financing and Consolidation to close on or about the middle of February, 2017.
About Xylitol Canada Inc.
Xylitol Canada markets xylitol and xylitol based-products and is focused on becoming a major low-cost manufacturer of xylitol and related products, serving the global market from operations in North America. Xylitol Canada's business strategy is to leverage novel proprietary technology and processes to become North America's premier manufacturer of low cost, high quality xylitol from readily available environmentally-sustainable biomass. Xylitol is a natural sweetener which is marketed globally, including Canada and the United States, and is accepted by the American Food and Drug Administration, the World Health Organization, and the American Dental Association. Xylitol contains 75% less carbohydrates and 40% less calories than sugar, has a myriad of oral health benefits, including the prevention of tooth decay, and is safe for diabetics. To date, wider spread use of xylitol has been limited by the lack of a reliable, low cost, high quality supplier.
For more information about Xylitol please contact:
Steven Haasz
CEO and a director of Xylitol Canada Inc.
416.804.8231
[email protected]
Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Completion of the Consolidation and the Financing are subject to a number of conditions, including but not limited to, TSX-V acceptance. There can be no assurance that the Consolidation or the Financing will be completed as proposed or at all. The TSX-V has in no way passed upon the merits of the Consolidation or the Financing and has neither approved nor disapproved the contents of this press release.
Statements made in this press release include forward-looking statements that involve risks and uncertainties. These statements relate to future events and reflect management's current expectations and assumptions. A number of factors could cause actual events to differ materially from the events discussed in the forward-looking statements, such as completion of the Consolidation, completion of the acquisition of Nektar, completion of the Financing and Consolidation, and TSX-V approval. These forward-looking statements are made as of the date hereof and the Corporation does not assume any obligation to update or revise them to reflect new events or circumstances.
SOURCE: Xylitol Canada Inc.