VANCOUVER, BC--(Marketwired - December 05, 2016) - Canabo Medical Inc. (TSX VENTURE: CMM) ("Canabo" or the "Company") today announces it has entered into a letter of intent ("LOI") with Peak Pulmonary Consulting Inc. ("Peak Medical Group") incorporated under the laws of Alberta. Peak Medical Group will provide medical marijuana treatments and therapies within the Pinnacle Medical Centers through a wholly owned subsidiary, CieloMed. Pinnacle Medical Centers currently provide medical services to over 55,000 patients in Alberta.
Under the terms of the agreement, Peak Medical Group will provide physicians and clinic space to assess up to 20,000 new patients under Canabo medical marijuana assessment, prescribing, educational procedures and protocols. Training for up to 60 Peak Medical Group physicians and educators in Canabo's proprietary training protocols will begin immediately. All resulting patients under this agreement will also be enrolled in Canabo's medical data collection program.
Operational services will be provided by Peak Medical Group under the terms of a share exchange agreement ("SEA") with Canabo. Under the terms of the SEA, Canabo will acquire all the issued and outstanding shares of CieloMed on the earlier of: CieloMed assessing a minimum of 20,000 patients under Canabo's medical marijuana protocols; or six years from the date of the SEA. At closing, based on a 8-day VWAP for the period immediately preceding the execution of the LOI, Canabo will issue up to approximately 1,928,000 common shares (up to 6.4% of the issued and outstanding shares of Canabo), representing up to a maximum deemed value of $1,600,000 in Canabo shares. Any shares issued under the SEA will be subject to a 12-month voluntary pooling agreement. The agreement is subject to both parties maintaining certain performance and quality assurance provisions, the execution of the SEA and TSX Venture Exchange approval.
Dr. Neil Smith, Executive Chairman of Canabo stated, "This agreement represents a significant accelerant to our previous clinic roll out schedule. Pinnacle has the ability to provide Canabo patient care in up to 20 new locations in 2017." Dr. Smith indicated that the cornerstone of this agreement is a likeminded commitment to the highest standards of patient care, "I have known the operators of Pinnacle Medical Centers for several years now; their physician approach is just like ours, physicians dedicated to providing the highest standard of care. We all believe medical marijuana represent serious medication for real conditions, and that specially trained physicians are in the best position to work with patients' existing treatments."
Shawn Nicol, President of Peak Medical Group added, "We expect to begin offering Canabo treatment protocols in up to 3 or 4 of our clinic locations by January. We expect to expand services to the majority of Peak Medical Group locations during the first half of 2017."
About the Company
Canabo Medical Inc. is a Canadian corporation incorporated on March 19, 2014. Canabo wholly owns and operates Cannabinoid Medical Clinics, Canada's largest referral-only clinics for medical cannabis. After opening in 2014, Canabo now has ten clinic locations, including Toronto, Barrie, Ottawa, Hamilton, Halifax, St. John's, and Edmonton, with a number of additional clinics planned for opening in 2016 and 2017.
The principal business carried on and intended to be carried on by Canabo is the operation of strictly referral-only medical clinics for evaluating the suitability of, prescribing, and monitoring cannabinoid treatments for patients suffering from chronic pain and disabling illnesses. Clinics operated by Canabo are staffed by physicians and qualified health care practitioners specifically trained to assess patient suitability for cannabinoid treatment, recommend treatment regimes, and monitor treatment progress. Canabo sees patients only on a physician-referral basis. The Access to Cannabis for Medical Purposes Regulations ("ACMPR") requires that medical marijuana must be prescribed by a health care practitioner; however, no cannabinoid products or medical marijuana are sold at Canabo's cannabinoid medical clinics.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Forward Looking Statements
Except for historical information, this press release contains forward-looking statements, which reflect Canabo Medical Inc.'s current expectations regarding future events. These forward-looking statements involve known and unknown risks and uncertainties that could cause Canabo's actual results to differ materially from those statements. Those risks and uncertainties include, but are not limited to, our ability to access capital, the successful and timely completion of opening clinics, regulatory changes, competition, approvals and other business and industry risks.
The forward-looking statements in this press release are also based on a number of assumptions which may prove to be incorrect. Forward-looking statements contained in this press release represent views only as of the date of this release and are presented for the purpose of assisting potential investors in understanding Canabo's business, and may not be appropriate for other purposes. Canabo does not undertake to update forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf, except as required under applicable securities legislation. Investors are cautioned not to rely on these forward-looking statements and are encouraged to consult with a professional investment advisor.