WINNIPEG, MB / ACCESSWIRE / May 15, 2019 / Preferred Dental Technologies Inc. ("Company") (CSE: PDTI, US OTC: PDTTF): PDTI reaches an agreement in principle to joint venture in a seed to sale CBD enterprise.
As part of the expanding role of Preferred Dental Implant Corp.'s line of organic CBD based dental products, the Company is very pleased to announce that it has negotiated terms for a joint venture with Gillespie Farmer's Delight Company Ltd. (GFDCL). GFDCL is in development stage of establishing a 240 acre hemp growing and CBD extraction facility located in Jamaica. This agreement in principle is the result of six months of careful vetting and negotiation.
Pending successful completion of legal documents, PDTI will exchange 5,000,000 (5 million) of its common shares for a 22.5% stake in GFDCL. Under the agreement PDTI takes on no obligation for GFDCL's capital needs, the basis of the agreement is to procure a consistent high quality, low cost supply which will enable PDTI to offer a best price on its branded product line. In return for receiving 5 million PDTI shares GFDCL will issue 9,000,000 (9 million) common shares of its equity. Based solely on the property value of the current lease purchase currently under consideration, the value of the property interest to PDTI in this joint venture is in excess of $500,000.00 US, or approximately $650,000.00 Canadian.
The benefits to PDTI are many. Firstly the ability to use shares valued at $0.13 (13 cents) Canadian to secure this asset will add shareholder value on the balance sheet. Successful conclusion of this joint venture also avails PDTI to receive its proportionate share of net profits. Equally important is PDTI gains access to white labelled CBD product at cost-plus preferred pricing, giving PDTI "best price" access. GFDCL has assembled a first-rate team of experienced experts in all aspects of growing hemp as well as extraction of CBD. In addition PDTI will capitalize on the ability to introduce specialized products for the dental market backed with scientific data after assembling an advisory board of dental experts. This will bring the vision of PDT Wellness to the next level.
President and CEO Erik Siegmund stated, "We are very pleased to announce our entry into this joint venture with Gillespie Farmer's Delight Company Ltd. We have worked very closely with founders and their advisory team and feel strongly that a successful conclusion of this JV in the near future will be part of a continuing set of strategic partnerships to bring shareholder value to PDTI. Certainly, in examining similar operations, the potential for future growth is huge, and GFDCL has many options for expansion. We look forward to sharing developments from GFDCL with our shareholders in the coming months. With successful conclusion of this venture, PDTI's stake in GFDCL's early stage has the potential to bring substantial value and revenue to the company. In no way are we distracted from our core business of marketing our custom EAS series of abutments, we view this as a vertical that enhances our overall value proposition in the dental market."
Preferred Dental Technologies Inc. (PDTI) has been established to advance development and commercialization of various evolutionary and disruptive technologies in the dental implant industry.
MISSION - INNOVATIVE & PRACTICAL SOLUTIONS FOR THE DENTAL INDUSTRY
On behalf of Gillespie Farmers Delight Company Limited
This news release may contain forward-looking information which is not comprised of historical facts.
Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release may include, but is not limited to, the Company's objectives, goals or future plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. 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, other than as required by law. Neither The Canadian Securities Exchange nor its Regulations Services Provider (as that term is defined in the policies of The Canadian Securities Exchange accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Preferred Dental Technologies Inc.