Vancouver, British Columbia, Canada, December 9, 2019 – Global Cannabis Applications Corp. (“GCAC” or the “Company”) (CSE: APP, FSE: 2FA, OTCQB: FUAPF), a leading developer of innovative data and AI technologies for the medical cannabis industry, is pleased to announce it has offered and signed a Term Sheet (TS) to invest up to $1,750,000 with Barak Yevul Ha’aretz (“BYH”), a privately held medical cannabis growing operation based in Moshav Gilat, Israel.
BYH, 100% owned by the Malka family, has a 99-year lease on approximately 60 dunams (15 acres) and has a license to grow from the Israeli Medical Cannabis Unit. BYH has already made investments of over $1,000,000 in infrastructure and milestones required by the regulator during the certification process. The first stage will be a net 12 dunams (2.7 acres) planning on 5.5 m grams for the first year and 6.6M grams for the 2nd year of commercial grow. The construction period, including the mandatory pilot run, is eight months.
To be outlined in the definitive agreement, Canadian based GCAC shall assume an $8.75 million valuation of the 12 dunams of GMP grade medical cannabis. This relays on the company reaching the stage of growing the final crop for licensing and GMP equivalent within six months. If milestones are not achieved, the pre-money valuation will be reduced to $5M or the equivalent of 35% of BYH. GCAC shall assist in raising from external investors the required funds for BYH’s operation, in the sum of $8,600,000 over the first stages of the company’s operation, by way of convertible debenture at an agreed upon market cap value.
As part of the agreement, GCAC shall have exclusive access, right to use, and commercialize all BYH growing and seed to sale tracking data for use in its Citizen Green technology solution. GCAC will evaluate future technology partners and has the first right of refusal in the deployment of new technologies used in growing and distribution operations.
All agreements are subject to Israeli foreign investment regulatory approval.
“The BYH investment is the next step in our ongoing commitment to connecting to cannabis powerhouses, Canada and Israel” states GCAC’s Brad Moore. “BYH’s 5.5 m grams of cannabis in year one consumed by over 40k patients wearing the Inteligenta biometric watch will contribute 418 billion growing and consumer feedback data points into our award-winning AI and blockchain solution. That is a staggering amount of information for us to work as we build the world’s most comprehensive Cannabis 3.0 database.”
The Parties agree to work together in good faith to develop business and financial milestones to be accomplished prior to and as part of the Definitive Agreement. Further, the Parties agree that the initial set of milestones should be established no later than 60 days after the execution of this TS.
About Global Cannabis Applications Corp.
Global Cannabis Applications Corp. is a global leader in designing, developing, marketing and acquiring innovative data technologies for the medical cannabis industry. The Citizen Green platform is the world’s first end-to-end – from patient to regulator – medical cannabis data solution. It uses six core technologies: mobile applications, artificial intelligence, regtech, smart databases, blockchain and digital reward tokens, to qualify candidates for clinical studies. These technologies facilitate the proliferation of digital conversations by like-minded people in the medical cannabis community. Managed by digital and cannabis industry experts, GCAC is focused on viral global expansion by providing the best digital experience in the cannabis market.
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This news release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business of GCAC. Forward-looking information is based on certain key expectations and assumptions made by the management of GCAC. Although management of the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because GCAC can give no assurance that they will prove to be correct. Forward-looking statements contained in this news release are made as of the date of this news release. GCAC disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
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