Canadian MMJ Company Acquires Exclusive Rights to Potency Test Kit and Hemp Flavored Teas in Canada
ATLANTA, GA / ACCESSWIRE / July 17, 2014 / Dutch Gold Resources, Inc. (DGRI.OTC) (the “Company”) (http://dutchgoldinc.com) today announced that it has licensed the rights its THC Potency Test Kit and Hemp Tea drinks to Abba Medix Corporation (ABBA) of Richmond Hill, ON Canada.
Under the terms of the agreement, Abba Medix has been licensed to distribute both products in Canada and certain other countries. ABBA has paid a license fee to the Company, which under certain conditions, DGRI may be convert into equity in ABBA.
Abba Medix (http://www.abbamedix.com/) was founded in 2013 to capitalize on the dramatically changing rules governing medical marijuana production in Canada. On April 1, 2014, Health Canada eliminated the ability of the approximately 37,000 Canadians currently licensed to grow and possess medical marijuana for medicinal use on their own. Patients must now purchase product from commercially producing providers licensed by Health Canada. Although patients will still need appropriate documentation signed by a health care practitioner and must register with one of the commercial producers, the registered producer will now file the application on behalf of the patient to Health Canada. Abba Medix has made an application to Health Canada to become a commercial producer. ABBA intends to broaden its product offering including these products to provide a full menu of complementary product and service offerings in this sector –also ABBA has the experience and expertise in the beverage market through principal shareholders and affiliates and plan to distribute and leverage this product offering through established distribution channels.
Under the terms of the agreement, Abba has agreed to license fee based on a number of parameters; a portion of which has already been paid, to license its proprietary technologies where they will act as the Company’s exclusive marketing agent in Canada and certain other countries. Dutch Gold Resources may elect to convert part of the outstanding license fee into equity in Abba Medix, in the event that the ABBA’s shares become publicly traded.
“We are pleased that we have found a partner in Abba Medix. Their unique understanding of the Canadian MMJ market complements our initial marketing efforts in the United States. Their principals have an established successful track record of building businesses. Importantly, they have a firsthand knowledge of specialty health care delivery which we believe will help to accelerate the build out of the distribution network for the THC Potency Test Kit”, said Daniel Hollis, CEO of Dutch Gold Resources.
Hollis continued, “In addition to their experience in specialty healthcare delivery, Abba Medix management also posses expertise in the distribution of beverages in Canada which is equally of benefit towards building a market for our hemp flavored teas. While we are pleased that we have been able to create near term license fees resulting in immediate revenue to the company, we are confident that we have found the right partners for the Canadian market, which gives us the opportunity to continue to generate shareholder value for both Dutch Gold Resources and Abba Medix.”
An 8K covering the details of this transaction will be filed with the Securities and Exchange Commission.
This press release contains forward-looking statements that reflect the Company's current expectation regarding future events. Actual events could differ materially and substantially from those projected herein and depend on a number of factors. Certain statements in this release, and other written or oral statements made by Dutch Gold Resources, Inc. are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond the Company's control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Important factors that could cause actual results to differ materially from the company's expectations include, but are not limited to, those factors that are disclosed under the heading "Risk Factors" and elsewhere in documents filed by the company from time to time with the United States Securities and Exchange Commission and other regulatory authorities.
For further information, please see http://www.dutchgoldinc.com/ or please contact Daniel Hollis, CEO of Dutch Gold Resources, Inc. at 404-981-7424.
Source: Dutch Gold Resources Inc.