Vancouver, British Columbia – Chlormet Technologies Inc. (“Chlormet” or the “Company”) (TSXV:PUF) is pleased to announce that it has signed the formal Share Exchange Agreement (the ‘Definitive Agreement’) for the take-over of AAA Heidelberg (see news release dated March 27, 2014).
The Company will issue the shareholders of AAA Heidelberg a total of eighteen million three hundred and fifty thousand (18,350,000) shares in exchange for the remaining 83.5% ownership stake in AAA Heidelberg that Chlormet does not already own.
“Since being introduced to this opportunity we have been working toward the closing of this acquisition. We believe in the significant potential of this business opportunity” stated CEO Yari Nieken.
About AAA Heidelberg
AAA Heidelberg owns a secure 8,800 square foot commercial building and land located in London, Ontario, that has been converted into a state of the art medical marijuana grow facility. Since December 2013 AAA Heidelberg has had an application pending with Health Canada for a MMPR license for the production of up to 1,320 pounds of marijuana in the first year.
Since filing its initial application AAA has made significant personnel acquisitions and developed relationships to prepare for entering the medical marijuana space. AAA Heidelberg’s personnel includes an experienced grow-master who is currently a ‘designated grower’ under current MMAR licensing. He has grown multiple strains of marijuana for over 5 years.
Betty Quon is AAA Heidelberg’s Operations Manager for its London, Ontario production facility (see news release dated May 15, 2014). Initially Mrs. Quon will be responsible for all aspects of AAA Heidelberg’s ongoing permit application with Health Canada in order to streamline the permitting process.
Prior to joining AAA Heidelberg, Mrs. Quon was a Sourcing and Staffing Specialist for the Canadian Pacific Railway Company for 25 years reaching the level of Director, Sourcing Intermodal and Automotive. In this role she was responsible for a portfolio of Canadian and US contracts worth more than $150 million annually. She has an MBA in Marketing from McMaster University as well as a B.Sc.L in Translation from the Laurentian University. Mrs. Quon was also the recipient of the International Business Scholarship from the Institute for International Studies and Training – Fujinomia, Japan.
AAA Heidelberg retained the services of David Hyde and Associates to assist in completing the security protocols required by Health Canada (see news release dated June 12th, 2014). David Hyde and Associates are uniquely qualified to help AAA Heidelberg as they have worked with other licensed producers that have already received marijuana growing licenses from Health Canada.
David Hyde and Associates is a full service security, crime prevention and risk management consulting company headquartered in Toronto and operating across Canada. The firm is made up of a multi-disciplinary team of direct employees and affiliate specialists who take pride in delivering professional security solutions to the firm’s valued clientele across multiple industry sectors.
The Principal Consultant, David Hyde, M.Sc., CPC, is a seasoned security specialist with over 28 years of security and business management experience. Prior to entering the consulting field, David led the enterprise security management program for a major Canadian corporation with property assets totalling 60 million square feet across six Canadian Provinces.
AAA Heidelberg has since initiated a Doctor Outreach Program (see news release dated June 23rd, 2014) with plans on creating relationships with the doctors and clinics in southern Ontario that are pro medical marijuana in advance of the issuance of a MMPR license.
In conjunction with the launch of the Doctor Outreach Program AAA Heidelberg has brought on Mr. David Bard as its Director of Business Development. Mr. Bard will utilize his considerable experience in the pharmaceutical and medical device industry that has given him unique relationships with doctors and clinics in southern Ontario to market AAA Heidelberg and ultimately the various strains of medical marijuana that AAA Heidelberg plans to grow.
David Bard has twenty years of leadership experience in pharmaceutical and medical device marketing, sales, and training. He has worked with leading healthcare companies across North America including AstraZeneca, ALZA, Alcon, GSK and Biovail. During his time with these leaders in the healthcare market he participated in over a dozen successful launches.
Mr. Bard’s specific expertise and passion is in launching new products that involves new product brand management, lifecycle management planning, sales management and product management training. He has commercialization experience in more than twenty therapeutic areas including pain management. As an expert product launch marketer, Mr. Bard has transitioned to consulting for life science companies to assist launch teams in their assessment and preparation of product launches. His company, Bard Consulting Group Inc. was founded to address this gap in the marketplace.
Terms of the acquisition:
This is a non-arms length transaction as the companies have one director in common.
Chlormet will issue 4,350,000 shares upon signing the Definitive Agreement with the remaining share issuances to be done incrementally as AAA Heidelberg advances through the application process with Heath Canada as follows:
Receiving security clearance: 2,000,000
Receiving ready to build letter: 2,000,000
Receiving MMPR licence: 10,000,000 (escrowed per Exchange policies)
About Chlormet Technologies
Chlormet Technologies Inc. is moving into the Medical Marijuana sector by purchasing a 100% interest in AAA Heidelberg, a private Ontario company that is in the process of applying for a MMPR license. Although the Company cannot guarantee nor estimate the timing for the issuance of a license to AAA Heidelberg, it is Chlormet’s goal to become the next publicly traded Canadian company to be granted a new medical marijuana production license.
With the purchase of land in Whatcom County (see news release dated November 4, 2014) Chlormet intends to become involved in the legal marijuana industry in Washington State by providing building, equipment and non-grow related services to licensed growers.
ON BEHALF OF THE BOARD OF DIRECTORS
President and CEO
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