VANCOUVER, British Columbia, April 2, 2019 /PRNewswire/ -- Abattis Bioceuticals Corp. (the "Company" or "Abattis") (ATT.CN) (ATTBF) is pleased to announce that its wholly-owned subsidiary, 1185277 B.C. Ltd. (the "Acquisition Subsidiary"), has entered into a share purchase agreement (the "Agreement") to acquire (the "Acquisition") Pro Natura BV ("Pro Natura"), a privately held nutraceutical company based in Oisterwijk, Netherlands.
Pro Natura has over 30 years of operations and sales experience in Europe, with over 100 products that have been marketed to both long-term repeat customers and new large groups of distributors. Pro Natura has been supported by a seasoned management team that still includes its original founder and has historically boasted €10M+ in per annum sales.
"The Acquisition marks an important turning point for Abattis as we narrow our focus on generating revenues and profits," commented Rob Abenante, President and CEO of Abattis. "It will give the Company unprecedented, direct access to the lucrative European markets as well as a diversified suite of over 100 products to offer our customers and clients. Pro Natura has developed a vast distribution network over the past three decades, which we hope to grow by adding our growing line of products developed by our subsidiary, Vergence" added Mr. Abenante.
According to a recent BCC Research market report1, the global nutraceuticals market is projected to reach US$336.1 billion by 2023 from US$230.9 billion in 2018, growing at a CAGR of 7.8% during the forecast period. As noted in a recent Brightfield Group report2, the market for CBD in Europe alone is projected to exceed €1.2 billion by 2023, growing over 400% from the market's estimated value of €318 million in 2018. The Acquisition will allow the Company to leverage Pro Natura's distribution network for CBD sales in Europe, which will be further bolstered by new CBD products introduced by the Company.
"We are seeing a trend in both developed and developing countries towards increased self-medication and nutraceutical awareness, especially in respect of healthy and natural based products," stated Brazos Minshew, Chairman of the Abattis Medical Advisory Board. "Growth in the market size for nutraceuticals and bioceuticals has also been supported by an increase in the aging population worldwide and a growing interest in health and wellness in people of that demographic," added Mr. Minshew.
The Agreement provides for the acquisition of 100% of Pro Natura's outstanding shares from Catalyst Investment Capital Corp. ("Catalyst") in exchange for the payment of €6,684,200 to Catalyst, which will be paid as follows: (i) €2,000,000 on closing; (ii) €2,220,000 one year following closing; and (iii) €2,464,200 two years following closing. The Acquisition Subsidiary has also agreed to pay Catalyst (i) a €5,000,000 milestone payment within two years of Abattis CBD products being launched through Pro Natura's sales and (ii) a €4,000,000 milestone payment within two years of launch of sales of Abattis' proprietary product, Comfort, through Pro Natura's sales channels. The Acquisition Subsidiary's obligation to make these milestone payments will expire within three years from closing of the Agreement. The Company and Catalyst are actively working to complete the Acquisition and hope to do so by mid-April 2019. Past management of Pro Natura will also continue to support the company in the future as this transition takes place, joining the international team of Vergence Naturals through this acquisition.
Further to the Company's news releases dated February 18th and 27th, 2019, the Company is still undergoing its year-end financial statement audit and trading of the Company's common shares on the Canadian Stock Exchange remains halted. During this time, all material disclosures will continue to be disseminated via news release, but for those interested in more frequent general corporate updates, the Company encourages subscription to the Company's newsletter. Subscription is possible at the bottom of the Abattis website (https://abattis.com/). The Company appreciates the ongoing patience and overwhelming support from Abattis investors and stakeholders and will keep providing company highlights and updates via the newsletter.
The Company also announces that Kent McParland has been replaced by Francesco Paolini as the Interim Chief Financial Officer and as a Director of Abattis. The Company thanks Mr. McParland for his service over the past year and wishes him all the best in his future endeavours.
"The Company is extremely grateful for Mr. McParland's contributions over the past year," stated Rob Abenante. "We also welcome Mr. Paolini to the team, who brings over 35 years of international business, product distribution and entrepreneurial experience to his new role at Abattis," added Mr. Abenante. "These skill sets will play an instrumental role as the Company shifts its focus to global sales."
About Abattis Bioceuticals Corp.
Abattis is positioned to be a leader in the cannabis industry as a fully integrated medicinal cannabis company. In addition to the Company's flagship cultivation asset located on British Columbia's Gabriola Island, Abattis is aggressively building its portfolio of assets including through the acquisition of 140 genetic strains and a robust portfolio of fertilizers and nutrients, custom formulated for the emerging cannabis market.
Abattis' products and services divisions include its Abattis-branded vaporizer line, as well as the proprietary cannabinoid therapeutic, COMFORT™, formulated to treat chronic pain and inflammation. Abattis continues to service the cultivation industry through its service agreements with licensed laboratory Northern Vine Canada Inc., and Dicentra Inc., one of Canada's largest regulatory advisory firms.
Abattis continues to pioneer cutting-edge research in partnership with the University of British Columbia and Mitacs, to research and develop nanoemulsified cannabinoid-rich hemp oil and cannabinoid-infused products. Abattis has also solidified key investments into XLABS Therapeutics (ONT) Inc., building one of Canada's largest cannabinoid manufacturing labs, as well as blockchain service and cryptocurrency platforms focused solely on cannabis product and service transactions.
ABATTIS BIOCEUTICALS CORP
Robert Abenante, President & CEO
About Canada One Communications Inc.
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FORWARD LOOKING INFORMATION
This press release contains forward-looking statements. The use of any of the words including but not exclusive to "anticipate", "continue", "estimate", "expect", "may", "will", "project", "intends", "should", "believe" and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this press release include statements regarding: the anticipated closing of the Acquisition; the Acquisition giving the Company unprecedented, direct access to the lucrative European markets as well as a suite of over 100 products to offer its customers and clients; the Company's hope to grow Pro Natura's product line with the addition of Abattis' growing line of products in Vergence; expected size of the global nutraceuticals market and the European CBD market; the expectation that the Acquisition will allow the Company to leverage Pro Natura's distribution network for CBD sales in Europe and that such activities will be further bolstered by new CBD products introduced by the Company; trends towards self-medication and nutraceutical awareness; future obligations to purchase price and milestone payments to Catalyst; and the benefits of Mr. Paolini's past experience as the Company shifts its focus to global sales. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Additional risk factors are included in the Company's Management's Discussion and Analysis, available under the Company's profile on www.sedar.com. The forward-looking statements are made as at the date hereof and the Company disclaims any intent or obligation to publicly update any forward-looking statements, where because of new information, future events or results, or otherwise, except as required by applicable securities laws.
For more information, please visit the Company's website at: www.abattis.com
For inquiries please contact +1(808) 650-3007 or at email@example.com. Abattis' investor relations are managed by Canada One Communications Inc.