Radient Technologies Inc.
TSX VENTURE : RTI

Radient Technologies Inc.

August 28, 2017 20:30 ET

Radient Technologies Inc. Releases Q1 2018 Results

EDMONTON, ALBERTA--(Marketwired - Aug. 28, 2017) - Radient Technologies Inc. (TSX VENTURE:RTI) (the "Company") announced today that it has released its first quarter financial results for the fiscal year 2018 ended June 30, 2017. The unaudited financial statements, Management's Discussion and Analysis, and the CEO & CFO certifications for the first quarter June 30, 2017 are available on www.SEDAR.com.

Key Highlights for Q1 2018 :

  • The Company continued the execution of commercial manufacturing activities with a series of contracts for manufacturing two ingredients for a multi-national ingredients company.
  • The Company announced the successful completion of the Joint Venture Research Activity ("JV") with Aurora Cannabis (TSX: ACB) ("Aurora"), confirming the effectiveness of its proprietary MAP™ Technology and associated continuous flow design for extracting cannabinoids from dried cannabis validated by a third-party laboratory. The feasibility study included the establishment of parameters of extraction yields, recovery rates of available cannabinoids, purity of the extracts obtained, and the determination of cannabinoids and terpene profiles. The study also included an assessment of the potential processing throughput achievable using the Company's large-scale continuous-flow MAP™ extractor, based upon established extraction conditions
  • The Company and Aurora announced that they are currently negotiating the terms of a definitive agreement for the exclusive use by Aurora of the Company's proprietary MAP™ technology. The purpose of the agreement will be to formalize the development and commercialization of standardized cannabis extracts for both the Canadian and export markets
  • The cash and restricted cash balance as of June 30, 2017 was approximately $11.85 million due in large part to the private placements, exercise of warrants and convertible debenture placement to Aurora strengthening the balance sheet to execute on the business plan.
  • Health Canada advised the Company's application for a Controlled Drugs and Substances Dealer's License had progressed to the Review stage. Health Canada advised that its 180 day (business days) service window ends in mid-December 2017.

Subsequent Events

  • The Company agreed to issue up to 9,424,330 common shares, at a price of $0.66 per share, to an arm's length third party creditor of the Company, AVAC Ltd. ("AVAC") in connection with the settlement an aggregate of $6,210,633 of debt (inclusive of interest) in a shares for debt settlement. AVAC had previously advanced the Company $4,685,000 in exchange for a royalty on the Company's future revenue. The settlement will result in the termination of AVAC's entitlement to any future royalty payments by the Company to AVAC. This conversion allows the Company to continue to strengthen its balance sheet.
  • The convertible debenture issued to Aurora on February 13, 2017, was converted into 14,285,714 units of the Company pursuant to the acceleration provisions contained therein. Each unit consists of one common share and one common share purchase warrant exercisable prior to February 13, 2019 for one additional common share of Radient at an exercise price of $0.33 per warrant.
  • Health Canada has notified the Company that it has progressed to the Review and Security Clearance stage pursuant to the Access to Cannabis for Medical Purposes Regulations ("ACMPR").

Denis Taschuk, President and CEO of Radient, stated - "We are delighted with the results of the JV activity with Aurora and are looking forward to finalizing our definitive agreement in the near future. We are also very pleased with the progress we have made in strengthening the Company's balance sheet, putting the Company on a stronger footing to achieve its growth plans."

Shares for Services

The Company intends to issue shares to an arm's length third party in exchange for the business development services. Pursuant to the terms of the agreement, the Company may issue up to a maximum of $250,000 of common shares in any fiscal year in consideration for such services.

The number of shares to be issued for each quarter will be determined at the end of each quarter, after the services have been provided to the Company. The issue price of the shares will be the closing trading price of the Company's shares on the last trading day of such quarter. The Company will issue a press release after each issuance of shares under the terms of the Agreement.

The agreement shall automatically renew for successive two year terms, subject to the rights of termination of the parties.

The shares for services agreement is subject to approval by the TSX Venture Exchange and will be subject to TSX Venture Exchange approval for each renewal term.

Option Grant

The Company also announces the grant of 700,000 incentive stock options to certain of its consultants and employees pursuant to the Company's Stock Option Plan. The options are exercisable for a period of five years at a price of $.50 per share.

About Radient

Radient extracts natural compounds from a range of biological materials using microwave assisted processing ("MAP™"), a patented technology platform which provides superior customer outcomes in terms of ingredient purity, yield, and cost. From its 20,000 square foot manufacturing plant in Edmonton, Alberta, Radient serves market leaders in industries that include pharmaceutical, food, beverage, natural health, personal care and cannabis markets. Visit www.radientinc.com for more information.

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