Anexco Resources Ltd.
CNSX : AXO

August 21, 2014 14:51 ET

Anexco Resources Signs Final Agreement for Exclusive North and South American Rights for Automated Kiosks for the Dispensing Of Cannabis Products

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 21, 2014) -

NOT FOR DISSEMINATION IN THE UNITED STATES

Anexco Resources Ltd. (CSE:AXO) ("Anexco" or the "Company") - Further to the Company's news release of June 25, 2014, Anexco is pleased to announce that it has signed a final agreement (the "Agreement") with Alps Innovations Group ("Alps") for exclusive North and South American rights to an intelligent automated retail kiosk, the BioCanna ADM, for the dispensing of Cannabis and related products in both medical and commercial markets.

Anexco/Kaneh Bosm realized the Cannabis market required a retail system that provided secure, safe, reliable, and automated transactions. Thus, together with Alps we created the BioCanna ADM system, an intelligent automated dispensing machine.

The BioCanna ADM system provides secure product storage, the ease, reliability, and possible 24/7 availability, and the cost effectiveness of automated retail, coupled with an age-verification or patient eligibility requirement. The kiosks feature sophisticated inventory management systems including robotics and RFID chip reader capabilities, and will be capable of unique identification of each customer. The kiosks will be networked to an enterprise server which monitors and records parameters including inventory levels, purchases tracked by each customer, kiosk functionality and health. Furthermore, the inventory area of the kiosks will be climate controlled to ensure product freshness. The BioCanna ADM can dispense any type of Cannabis products, including branded accessories such as vapourizers, pipes, or rolling papers.

The BioCanna ADM system will revolutionize Cannabis retail.

Alps has developed and licensed specific software for the BioCanna ADM exclusively to Anexco for an initial term of five years, which is automatically renewable every 5 years based on purchase quotas. Anexco is paying Alps a fee of $55,000 to customize the BioCanna ADM software for the dispensing of Cannabis and related products. Anexo will own these software modifications. Alps will grant a further license to Anexco to use this software to potentially enter the retail pharmaceutical drug sector using similar kiosks should the opportunity arise.

The Company is issuing 500,000 shares to Alps: 300,000 immediately and another 200,000 shares after the Company has purchased 25 kiosks. A finder's fee is payable on this transaction amounting to 10% of the issued shares.

The Agreement mandates the initial purchase of three kiosks prior to October 2014 and a test period ending not later than June 30, 2015 to field test the Kiosks with the software modifications. To maintain exclusivity, two years after the completion of the test period, the Company is required to purchase 55 Kiosks and then 30 kiosks every three months thereafter. Upon the purchase of 400 Kiosks the exclusivity is perpetual.

Pursuant to the license, Alps is responsible for: (i) the continuous monitoring of the Software operations, (ii) remote troubleshooting and technical support for any Software or hardware issues, (iii) security of the information in the database and data protection compliant with the minimum standards of the Payment Card Industry and (iv) periodic Software patches and further modifications as required

Prior to August 15, 2015 the Company can negotiate terms for the use of the Kiosks in the retail sale of prescription drugs and pharmaceutical products in both North and South America.

Distribution partnerships and territory assignments will be explored by the Company in a variety of territories across North and South America. Interested parties should contact info@kanehbosmbiotech.com.

The Company has decided to abandon the LOI covering the MMAR production facility as it is pursuing more favourable Cannabis production opportunities with far greater upside potential.

On behalf of the Board of Directors of Anexco Resources Ltd.

Michael Martinz, President, Director

Rudy de Jonge, CEO, Director

THE CSE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.

This news release includes certain statements that may be deemed "forward-looking statements". The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "would", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. 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. These statements speak only as of the date of this News Release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents which can be found under the Company's profile on www.sedar.com.

Contact Information

  • Anexco Resources Ltd.
    604.782.4191
    604.637.9614 (FAX)