Vancouver, BC / ACCESSWIRE / August 5, 2014 / Abattis Bioceuticals Corp. (the "Company" or "Abattis") (OTCQX: ATTBF) (CSE: ATT), a specialty biotechnology company focused on cultivating, licensing, and marketing proprietary ingredients, bio-similar compounds, equipment, and consulting services to North American medicinal markets, including medical marihuana, announced that it has entered into a US$5 million standby equity financing agreement with Kodiak Capital Group, LLC, a Newport Beach, CA-based institutional investor. The Company has agreed to file a registration statement with the U.S. Securities & Exchange Commission ("SEC") covering the Abattis shares that may be issued to Kodiak under this financing. After the SEC has declared the registration statement related to the transaction effective, the Company has the right at its sole discretion over a period of one year to sell up to US$5 million of common shares to Kodiak.
The Company has agreed to pay Kodiak a 5% commitment fee in shares. Of these shares, 277,373 shares shall be held in escrow in accordance with an escrow agreement. The company plans to access and use these funds in the event of an acquisition opportunity and for expansion in the US.
"We're very excited to be partners with Kodiak and welcome their knowledge and investment with great prospects to capitalize on acquisition opportunities as they arise. We now have additional financial security to add value to the company on an as needed basis. We felt this type of financing was a good way to go as it defers dilution." commented Michael Withrow, Chief Executive Officer, of Abattis. He went on to say, "Kodiak recognizes that our business model offers best practices for the pharmaceutical, nutraceutical and wellness industries and our GDERS (grow, dry, extract, refine, sell) strategy spanning the entire industry supply chain from Sciences to Sales(TM) meets and exceeds industry standards for consistent quality, safety, and efficacy."
Ben Esque, a member of Kodiak's advisory board, said, "We look forward to assisting Abattis with their expansion throughout North America and making them a part of our sprouting portfolio of cannabis-related businesses."
The securities referenced above may not be sold and offers to buy these securities may not be accepted prior to the time that the registration statement relating to the offering of such securities becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Abattis Bioceuticals Corp.
Abattis Bioceuticals Corp. aims to become a leader in the growing, testing, and distribution of medical and adult-use cannabis in North America. Through its network of subsidiaries and partners, the Company has developed an innovative GDERS (grow, dry, extract, refine, sell) strategy spanning the entire industry supply chain from seed to sale. These subsidiaries and partners specialize in cultivating, licensing and marketing proprietary ingredients, bio-similar compounds, patented equipment, and consulting services across the continent. The Company follows strict standard operating protocols and adheres to both U.S. and Canadian laws pertaining to the cultivation, testing, and sale of cannabis. Where Timeless Traditions Meet Reliable Science(TM). For more information, visit www.abattis.com.
About Kodiak Capital Group, LLC
Kodiak is an institutional investor headquartered in Newport Beach, CA. Kodiak makes private investments in public and private entities utilizing proprietary equity and debt instruments. These investments provide long-term strategic capital offering companies certainty, flexibility and consistency. Kodiak's investments are in a wide range of industries emphasizing alternative energy, consumer products, life sciences, natural resources, and social media technology. For more information, visit www.kodiakfunds.com.
ON BEHALF OF THE BOARD
"Mike Withrow"
Michael Withrow, President & CEO
For further information, contact the Company's CEO, Michael Withrow at (778) 896-6536 or at [email protected].
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY ORACCURACY OF THIS RELEASE.
FORWARD LOOKING INFORMATION
This press release contains "forward-looking statements" which are not purely historical. Such forward-looking statements include, among other things, the expectations of management that we will be successful in cultivating, licensing, and marketing proprietary ingredients, bio-similar compounds, patented equipment, and selling our consulting services across the continent; that the Company will successfully register shares and be able to sell them to Kodiak. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Actual results could differ from those projected in any forward-looking statements due to numerous factors, including, among others, that we may not be able to clear a registration statement, or that even if we clear the registration statement, we may decide not to sell shares to Kodiak at the price contracted; the potential failure of our business to develop as anticipated;, our ability to retain key employees; our ability to finance the development of our business; public controversy over our business as some of our services and product candidates involve controlled substances; and competitors may develop better or cheaper alternatives to our products or services. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Investors should refer to the risk factors disclosure discussed in our Management Discussion & Analysis reports filed from time-to-time on www.sedar.com.
SOURCE: Abattis Bioceuticals Corp.