SOURCE: THC BioMed Intl Ltd.

THC BioMed Intl Ltd.

March 23, 2016 08:00 ET

THC and Supra Enter Joint Venture Agreement for Licensed Cannabis Testing Lab

VANCOUVER, BC--(Marketwired - March 23, 2016) -  THC BioMed Intl Ltd. (CSE: THC) (OTC PINK: THCBF) (FRANKFURT: TFHC)  ("THC"), an MMPR licensed producer is pleased to announce it has entered into a joint venture agreement with and Supra Research and Development ("Supra") (the "Agreement") to create Supra THC Services Inc., a Health Canada licensed cannabis testing lab.

The creation of Supra THC Services ("Supra THC") coupled with the granting of THC's license under Canada's Marihuana for Medical Purposes Regulations ("MMPR") will result in a distinctive licensed cannabis testing lab that is poised to make a meaningful contribution to the progression of the cannabis industry.

THC will now have two state of the art laboratories at its disposal, giving it the edge it requires in becoming a leader in cannabis scientific research, analysis and development. The labs are close in proximity in Kelowna, B.C. and that fact, coupled with the synergizing of scientists and instruments, has created a world class testing and research facility to provide services for companies across Canada.

THC will continue to examine business opportunities in the cannabis industry as well as continue its research into innovative cultivation methods to produce the purest Landrace strains. THC is pleased to release the brand names of the products under development:

THC SATIVA
THC INDICA
THC HYBRID
THC CBD

John Miller President and CEO of THC commented, "THC intends to supply these in standardized dried buds as well as all forms it is permitted to produce under the MMPR."

Under the terms of the Agreement, THC will purchase 49% of Supra THC from Supra by issuing Supra 2,500,000 common shares (the "Shares"), of which 2,000,000 will be placed in escrow. THC will purchase an additional 31% of Supra THC for $600,000 on or before January 31, 2017 (the "31% Purchase"). 1,900,000 of the Shares will be placed under a 36-month stock restriction agreement and released following the issuance date in accordance with the standard release schedule provided in NI 46-201. Pursuant to the Agreement, THC also has a standard right of refusal to purchase the remaining 20% of Supra THC from Supra for the 12 months following the 31% Purchase.

Prior to the closing of the Agreement (the "Closing"), Supra will have completed all necessary documentation to transfer to Supra THC certain intellectual property and specific equipment for the lab's purposes. Supra is also obliged to use all commercially reasonable efforts to develop a viable, commercially competitive extraction method for cannabis for Supra THC's use within six months of the entry into the Agreement. When this occurs, THC will issue an additional 600,000 shares to Supra pursuant to the Agreement.

Pursuant to the Agreement, THC will provide use and access to Supra THC of all of its chemical analysis and develop all microbiological testing needed by Supra THC for Health Canada.

Following the Closing, work will be done by the entities that have the appropriate MMPR licenses and exemptions from the Controlled Substances Act. All work will be done by the appropriate entities and in accordance with all applicable laws and Health Canada regulations, policies and guidelines.

Following the Closing, the board of directors (the "Board") of Supra THC is to be comprised of at least one appointee of Supra and one appointee of THC. Following the 31% Purchase, THC will be entitled to appoint additional Board members.

About Supra THC Services

Supra THC Services Inc. is a joint venture between Supra Research and Development Inc. and THC and it owns or has use of the infrastructure, analytical instrumentation, intellectual property, licenses and expertise relating to Cannabis from both of its creators. Assets at Supra THC's disposal following the Closing will include (a) a dealer's license from Health Canada for the possession of Cannabis and related active ingredients and well as the production of extracts for the purpose of analysis; (b) THC's MMPR License, currently at the "Cultivation Only" stage; and, (c) the scientific teams and equipment from both Supra and THC.

The Supra Research and Development scientific team has extensive expertise relating to chemical analysis, chemometrics, and analytical instrumentation, especially mass spectrometry-based approaches. The Supra Research and Development scientific team has also developed innovative new approaches to chemical extraction of biomass and new approaches to chemical characterization of Cannabis. It also brings experience securing research grants from a variety of government sources, including NSERC, MITACS and SR&ED. 

Dr. Rob O'Brien, President of Supra THC and Supra, holds a PhD from Carleton University, where he conducted his research under the guidance of K.W.M Siu at the Chemical Metrology group of the National Research Council. He was a professor in Analytical Chemistry for more than 13 years, where he developed numerous graduate and undergraduate courses in Advanced Analytical Instrumentation techniques and Forensic Chemistry. In total he has more than 25 years' experience in analytical chemistry.

Dr. O'Brien is an Adjunct Professor at Thompson Rivers University and President of Supra Research and Development. He is an expert in analytical instrumentation and has set up a number of advanced analytical laboratories. Supra Research and Development was the first spin off company from the UBC Okanagan campus and was initially created to commercialize innovative biomass extraction technology. Dr. O'Brien has secured over $3 million dollars in research grants and has an extensive network of research collaborators.

Anderson Smith, B.Sc., is the Chief Operations Officer at Supra Research and Development. He has been involved in the instrumentation industry for 10 years in several critical roles, notably Instrumentation Service Manager and Business Development director for one of Canada's largest instrument vendors. Prior to joining the instrumentation industry, Anderson was a primary analyst in a major analytical contract lab. He has recently developed extensive expertise in Laboratory Information Management Systems (LIMS) and in securing laboratory certifications.

For a list of instruments and further information please visit www.suprathc.com.

THC's vision is to be on the leading edge of scientific research and development of products and services related to the medical cannabis industry, as well as supplying a superior line of products while creating a standard of excellence. As the industry develops, it will become more important to focus on scientific research and development of products and services related to medical cannabis. Management believes THC is well positioned to be in the forefront of this rapidly growing industry. Please visit our website for a more detailed description of our business and services available: www.thcbiomed.com.

Forward-Looking Information: 

This press release contains certain "forward-looking information" within the meaning of applicable securities law. The forward looking statements include that (i) the Agreement will result in a distinctive licensed cannabis testing lab that is poised to make a meaningful contribution to the progression of the cannabis industry (ii) THC will now have two state of the art laboratories at its disposal, (iii) THC BioMed will purchase 49% of Supra THC from Supra by issuing Supra 2,500,000 common shares, of which 2,000,000 will be placed in escrow, (iv) THC BioMed will complete the 31% Purchase, (v) following the Closing, work will be done by the entities that have the appropriate MMPR licenses and exemptions from the Controlled Substances Act. All work will be done by the appropriate entities and in accordance with all applicable laws and Health Canada regulations, policies and guidelines, (vi) THC will continue to examine business opportunities in the cannabis industry as well as continue its research into innovative cultivation methods to produce the purest Landrace Strains and (vii) as the industry develops, it will become more important to focus on scientific research and development of products and services related to medical cannabis. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. These statements are based on expectations and assumptions made by the management of THC at the date the information is provided, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking information. For a description of the risks and uncertainties facing THC and its business and affairs, readers should refer to THC's Listing Statement, Financial Statements and its Management's Discussion and Analysis on www.sedar.com

Contact Information

  • Contact:

    John Miller
    President and CEO
    THC Biomed Intl Ltd.
    T: 604 682-1643
    E: info@thcbiomed.com