Kaneh Bosm BioTechnology Inc.
CNSX : AXO

Anexco Resources Ltd.

September 23, 2014 08:00 ET

Kaneh Bosm BioTechnology Signs LOI with Penticton Indian Band Development Corporation for a Joint-Venture MMPR Licensed Producer Application

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 23, 2014) - Kaneh Bosm BioTechnology Inc./Anexco Resources Ltd. (CSE:AXO) ("Kaneh Bosm" or the "Company") --

NOT FOR DISSEMINATION IN THE UNITED STATES

Kaneh Bosm, a wholly owned subsidiary of Anexco Resources, is pleased to report that the Company has signed a non-binding LOI with the Penticton Indian Band Development Corporation ("PIB") for the development of a Joint Venture partnership to pursue a Licensed Producer ("LP") application under Health Canada's Medical Marijuana Production Regulations ("MMPR"). While non-binding in its format, this LOI the will be used as the basis for the preparation of a final definitive agreement to be negotiated and agreed to by the parties within 120 days.

Under the terms of this LOI Kaneh Bosm will become the exclusive partner to PIB for the production of Cannabis and other biomedical and therapeutic plants. A jointly held, newly created Joint Venture entity will be created for the initial purpose of pursuing a Licensed Producer ("LP") designation under Health Canada's MMPR system. Future endeavors of the JV may include the large scale production and processing of other biomedical and therapeutic herbs, and the production of commercial Cannabis should Canadian Federal legislation be created to enable this to occur.

PIB has significant land resources available that it wishes to develop in a sustainable and environmentally sensitive fashion, while providing economic opportunities for the Band and band members alike. A level 23 acre site with established access and a water system has been identified as a target property and will be made available to the JV. The Penticton area, and the target property are climatically ideal for large scale greenhouse production. The land package will need to go through the Land Designation process with the Federal government of Canada to establish the lease on the property in favour of the JV.

The percentage ownership of the JV will be based on the asset and cash contributions of each party. In the case of assets they will be independently valued and agreed upon by both parties and will be considered as cash. This funding scenario will work for each of the three phases planned, and any additional phases thereafter.

The JV will pursue a three phase LP application which will begin with an indoor medical Cannabis production facility, and transition into a massive greenhouse operation in two additional stages as follows:

  1. PHASE 1: Plans to encompass the construction of an indoor medical Cannabis facility with 12,000 sq ft of growing capacity with approximately 400 lights of production capacity. Construction of the administration, processing, storage, and testing facility will be built to support phases 1, 2, and 3 at this time and will total approximately 25,000 sq ft.

  2. PHASE 2: This phase plans the beginning of the greenhouse construction and will begin with the establishment of one vegetative bay, and two flowering bays, all 16,000 sq ft in area, totaling 48,000 sq ft. The previously constructed indoor facility will now primarily be used for mother plants and clone rearing. Production capacity at this point will be approximately of 3 tons of Cannabis per annum.

  3. PHASE 3: Completion of the greenhouse facility which will encompass the construction of the final two flowering bays. Total production area will now be approximately 100,000 sq ft, capable of producing 7 tons of Cannabis per annum.

The greenhouse facility will feature a state of the art design and will utilize blackout shades to create the required photoperiod to induce flowering in the Cannabis crop. A total of 4 harvests per year per flowering bay is planned. The potential yields of this operation could create a dominant player in the Cannabis production market.

Furthermore, reducing the need for electricity to power HID lighting will enable the JV to become a low cost, and high margin producer. This facility will also allow the JV to remain profitable should significant downward pressure on price become an issue in the future. Additionally, the ability to produce product in such bulk quantities will favour the production of prepared Cannabis products such as tablets, patches, oral strips, med-edibles, creams, salves, tinctures, and other finished products, or the sale of bulk extracts to processors as Federal legislation is developed within the next 12 months (see Regina vs. Smith BCCA 322).

In return for PIB granting Kaneh Bosm exclusive rights as PIB's preferred partner for the production of Cannabis and other biomedical plant and herbs, PIB will receive a signing bonus of 250,000 shares of Kaneh Bosm capital stock upon signing the Final Agreement. An additional 250,000 shares of Kaneh Bosm will be issued upon the receipt of the LP license from Health Canada.

The Company feels that this Joint Venture model of co-operation with First Nations for economic development is one that is replicable across Canada, and we will explore other opportunities within our network as they become available.

Kaneh Bosm EPC (Engineering Procurement Construction) Cannabis Production Facility Design/Build Division Launch

The Cannabis sector, both medical and commercial, has seen an incredible influx of capital recently. Most of this capital has been dedicated towards the construction of production facility infrastructure. This is a trend that Kaneh Bosm predicted as this sector grows out of its early stages. However, much of this capital is being invested into the sector by those not intimately familiar with Cannabis cultivation, and egregious errors in facility design have been made. Ultimately this will result in poor yields, high operational costs, and low quality product.

Enter Kaneh Bosm's EPC division, a full service engineering, procurement, and construction service, which strives to become the premier production infrastructure solution provider for Cannabis entrepreneurs.

The principles at Kaneh Bosm EPC collectively have spent many decades in the Cannabis business. This dynamic team has exceptional hands on experience which translates into an unparalleled depth of knowledge. This experience translates into an intimate understanding that success or failure in the Marijuana business begins and ends with a properly designed production facility.

Utilizing Kaneh Bosm's depth of experience in facility design and construction we are able to offer state of the art facilities which will minimize costs and optimize production levels and quality. As part of our service offering, we will train operators, provide ongoing maintenance, and even provide ongoing management. There is a reason BC Bud is internationally recognized for its quality and potency, in part Kaneh Bosm's team grew it! Get that experience working for you in your facility today.

Interested parties should contact info@kanehbosmbiotech.com.

Appointments to the Advisory Board

Kaneh Bosm is excited to welcome a new team member to the advisory board. This individual will clearly contribute to our corporate slogan of 'success through excellence'. She will clearly strengthen and complement our 'Cannabis dream team'.

We would like to welcome Elaine Alec as our First Nations Liason. Ms. Alec is a member of the Penticton Indian Band, and is a planning and community engagement specialist with a network extending across Canada. She has worked with both the provincial and federal governments for the past 15 years, and since 2008 she has been part of the Penticton Indian Band's Comprehensive Community Plan. Her Comprehensive Community Planning work is cited on a national level, and she is a highly sought after motivational and keynote speaker. She has inspired hundreds of audiences with her powerful message "Always Improve. Always Evolve. Never Give Up". A complete bio is available at the Kaneh Bosm website.

Michael Martinz, President of Kaneh Bosm, reports, "I am very encouraged by the work our 'Cannabis Dream Team' has performed these last few months in developing the business in a very positive fashion." He continues, "We have made tremendous strides forward at Kaneh Bosm, and we are determined to become a dominant player in the Cannabis market, and deliver substantial shareholder value."

On behalf of the Board of Directors of Kaneh Bosm Inc.

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