TORONTO, ONTARIO--(Marketwired - Jan. 10, 2017) - Mettrum Health Corp. ("Mettrum" or the "Corporation") (TSX VENTURE:MT), a fully integrated medical cannabis producer under the Access to Cannabis for Medical Purposes Regulations, is pleased to announce that it has acquired all of the outstanding shares of 2344823 Ontario Inc., d/b/a Bodystream ("Bodystream"), a leading network of medical cannabis clinics with 14 current locations across Ontario (the "Transaction").
Under the terms of the Transaction, Mettrum paid $1 million in cash and issued 451,596 Mettrum shares from treasury to the current shareholders of Bodystream. These shares are subject to a four-month hold and the Corporation is required to inform the TSX Venture Exchange (the "Exchange") of the Transaction. In addition, Mettrum will issue up to a maximum of 1,505,322 additional shares, over the next three to five years based on Bodystream achieving certain operational milestones.
"We have been working closely with Bodystream for the past two years and they have demonstrated an ability to scale rapidly while maintaining a high level of professional service," said Michael Haines, CEO of Mettrum. "With so many Canadians entering the ACMPR system on a monthly basis and medical cannabis gaining traction as a viable therapeutic option for a variety of symptoms, the time to expand this aspect of our business is now." As previously announced, the Corporation acquired Apollo Applied Research Inc. ("Apollo"), a referral-focused cannabis research clinic based in the Greater Toronto Area. The acquisition of Bodystream complements the Apollo acquisition and expands the reach of the Corporation's clinic network across Ontario, with the opportunity to expand beyond.
"Our mission at Bodystream is to apply cannabis-based therapies that can effectively treat our patients' symptoms," said Brian Warner, President of Bodystream. "Mettrum's physician-centric approach, and commitment to research resonates with our physicians and patients. We look forward to growing with Mettrum and working to develop a variety of services and products that will help improve the quality of life for patients."
Bodystream has operated since 2014 and since then, has earned the trust of an active patient base of approximately 6,000 people.
The Bodystream leadership team will remain on board and will continue operating the business independently as a wholly-owned subsidiary of the Corporation.
Under the terms of the Apollo transaction (which closed on November 15, 2016), in addition to consideration paid by Mettrum on closing, Mettrum agreed to issue up to a maximum of 1,558,752 additional shares, over three to five years, based on Apollo achieving certain operational milestones.
About Mettrum Health Corp
Mettrum Health Corp. is a Tier 1 Industry Issuer listed on the Exchange. Mettrum Ltd., a wholly owned subsidiary of the Corporation, is a Toronto-based company and a licensed producer of medical cannabis under the Access to Cannabis for Medical Purposes Regulations (Canada) issued pursuant to the Controlled Drugs and Substances Act (Canada) (the "ACMPR"), which came into effect on August 24, 2016. Mettrum received its first license from Health Canada under the Marihuana for Medical Purposes Regulations (the "MMPR") on November 1, 2013 and began production of medical cannabis at its first production facility in Bowmanville, Ontario.
Mettrum received its second license from Health Canada under the MMPR on December 11, 2014 for its subsidiary, Agripharm Corp., at Mettrum Creemore facility in Clearview, Ontario. Mettrum received its third license from Health Canada under the MMPR on December 17, 2015 for Mettrum Ltd. at its new 60,000 square foot production and distribution facility in Bowmanville, Ontario. Mettrum is a leading producer and vendor of medical cannabis under the ACMPR system. In addition, through its wholly-owned subsidiary Mettrum Hempworks, Mettrum is also a licensed producer and distributor of industrial cannabis (hemp) products, including Mettrum's functional food line, Mettrum Originals™, under the Industrial Hemp Regulations (Canada) issued pursuant to the Controlled Drugs and Substances Act (Canada).
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; delay or failure to receive board, shareholder or regulatory approvals; and the results of operations. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Mettrum disclaim 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.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this Press release.