BC Craft Supply Closes Definitive Agreement to acquire Ava Pathways
VANCOUVER, British Columbia, March 05, 2021 (GLOBE NEWSWIRE) — BC Craft Supply Co. Ltd. (the “Company” or “BC Craft”) (CSE: CRFT) (OTC:CRFTF) (FSE:ZZD1) announces that further to the news release issued on January 18, 2021, it has entered into a definitive agreement dated March 4, 2021 (the “Definitive Agreement”), to acquire 100% of the issued and outstanding shares of Ava Pathways Inc. (“Ava Pathways”), from arm’s length parties (the “Acquisition”).
Based in Vancouver, BC, Ava Pathways is an innovative company that is exploring the therapeutic scientific benefits of proprietary formulations, using compounds from mushrooms. Ava Pathways was founded by scientists and researchers focused on neuroplasticity and alternative ways to treat common and debilitating medical conditions such as depression, anxiety, PTSD, and substance use disorder, through the use of psychedelic-based treatments. Similar to craft cannabis, both plant-based treatments require a cultivation supply network to create proprietary strains that produce optimal results for the patient or end-user. Ava Pathways brings exceptional access to tested and standardized naturally-derived and synthetic materials which allows for the production of superior psychoactive and non-psychoactive formulations.Terms of the AcquisitionUnder the terms the Definitive Agreement, BC Craft has acquired all of the ownership interests in Ava Pathways, and Ava Pathways has become a wholly owned subsidiary of BC Craft. As consideration, BC Craft has issued 41,000,000 units (“Units”) of the Company to the shareholders of Ava Pathways on a pro-rata basis, issued at a deemed value of $0.105 per Unit. Each Unit is comprised of one common share (each a “Share”) and one transferable common share purchase warrant (each a “Warrant”) that is exercisable to acquire one additional Share at a price of $0.14 for a period of two years. The Company relied on the take-over bid exemption under Section 2.16 of National Instrument 45-106 – Prospectus Exemptions to issue the Units. In this regard, the Units are not subject to a four month and one day hold period.Matthew Watters, CEO of BC Craft, stated, “We are thrilled to announce the closing of the Acquisition and look forward to integrating Ava Pathways’ team into a newly formed psychedelic division within BC Craft that will focus on research and development, clinical trials, and product formulation using psilocybin, the active compound found in psychedelic mushrooms. We are elated that BC Craft will explore innovative opportunities to commercialize its psychedelic assets as the legal framework evolves and enthusiastic to be at the forefront of an industry with the potential to benefit millions of people worldwide.”For further information please contact Matthew Watters, Director, at (604) 687-2038.About BC Craft Supply Co. Ltd.Based in Vancouver, British Columbia, BC Craft Supply Co. has aggregated the best legacy-era talent from Canada’s craft cannabis industry, which boasts an international reputation. The team at BC Craft supports the most trusted cannabis cultivators in Canada to transition into their supply chain, bringing with them their unique cultivars and years of experience with the plant. In exchange for support with licensing, compliance and distribution, cultivators will sign on as a BC Craft supplier. This makes BC Craft uniquely positioned to be the premium cannabis brand in Canada.BC Craft’s subsidiary, Medcann Health Products Ltd., is a Health Canada licensed cultivator and processor with a license to sell medical cannabis products in Canada.Click here to connect with BC Craft Supply Co. on Instagram, Twitter, LinkedIn and Facebook, and click here to find more information on the Company.CONTACTMatthew Watters, Director
Email: [email protected]Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking information in this press release includes statements relating to Ava Pathways ability to provide access to tested and standardized naturally-derived and synthetic materials for the production of superior psychoactive and non-psychoactive formulations and the emerging psychedelic space becoming legal and social acceptable from the broader population. Although the Company believes that the material factors, expectations and assumptions expressed in such forward- looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance.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. 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. The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Accordingly, readers should not place undue reliance on forward-looking statements. BC Craft disclaims 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.