VANCOUVER, British Columbia, June 26, 2019 (GLOBE NEWSWIRE) -- AsiaBaseMetals Inc. (the "Company") (TSX-V: "ABZ") wishes to provide additional information regarding the cooperation agreement (the "Agreement") between the Company and a city (the "City") within a member country (the "Country") of the European Union ("EU"), as previously announced on June 19, 2019.
The Agreement provides for the City to apply for a licence for growing and selling cannabis for medical purposes ("Medical-Cannabis-Permit") and, if it becomes permitted by law in the Country, a licence for the growing, processing and sale of cannabis for commercial purposes including recreational purposes ("Recreational-Cannabis-Permit"), through a limited liability company to be incorporated by the City ("City-New-Sub-Co-Ltd."). Upon City-New-Sub-Co-Ltd. obtaining a Medical-Cannabis-Permit or a Recreational-Cannabis-Permit, the City has agreed to transfer all or a majority of the shares of City-New-Sub-Co-Ltd. to the Company for a purchase price of up to approximately C$8,000 based on the current exchange rate.
The City has informed the Company that it has commenced the process to incorporate City-New-Sub-Co-Ltd.
The Company has spent approximately C$10,000 to date in regard to the Agreement, excluding legal fees, and has no financial obligations under the Agreement unless and until the Company acquires City-New-Sub-Co-Ltd. as noted above. The Company is using its working capital to evaluate and pursue this and other mining and non-mining opportunities.
There is no defined timeline for obtaining a Medical-Cannabis-Permit or Recreational-Cannabis-Permit and, unlike in Canada, completing the construction of a production facility is not required in order to apply for a Medical-Cannabis-Permit in the Country. The Company has not designed or estimated costs to build a production facility or made a decision to build a production facility.
For more information on the Agreement and the transactions contemplated therein, see the Company's news release disseminated on June 19, 2019, a copy of which can be found on the Company's profile on www.sedar.com. Any transaction will be subject to receipt of regulatory approvals, including approval of the TSX Venture Exchange.
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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release, including statements regarding the Agreement, the transactions contemplated thereby and the Company’s pursuit of opportunities, may constitute "forward-looking information" within the meaning of Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company will obtain the necessary regulatory approvals for the transactions contemplated by the Agreement, the Medical-Cannabis-Permit will be obtained, the acquisition of City-New-Sub-Co-Ltd. by the Company will be completed as expected and will have the benefits expected by management. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks include, among others, financing risks, delays in obtaining or inability to obtain required regulatory approvals, the Medical-Cannabis-Permit will not be obtained, the Company will not be able to use the working capital to pay associated costs with the Agreement or Medical-Cannabis Permit, as applicable, the acquisition of City-New-Sub-Co-Ltd. by the Company will not be completed as expected or will not have the benefits expected by management and changes in the Company’s plans. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. There can be no assurance that the transaction contemplated by the Agreement will complete on the anticipated terms or at all.
Raj Chowdhry, Chief Executive Officer