MAGNETIC NORTH ACQUISITION CORP. ANNOUNCES MAJOR DISTRIBUTION AGREEMENT FOR INVESTEE COMPANY PREVICARE
**Not for distribution to United States Newswire Services or release publication, distribution or dissemination, directly or indirectly, in the United States. Any failure to comply with this restriction may constitute a violation of U.S. Securities Laws**CALGARY, Alberta and TORONTO, April 06, 2020 (GLOBE NEWSWIRE) — Magnetic North Acquisition Corp. (TSXV: MNC) (“Magnetic North” or the “Company”) is pleased to announce that one of its investee companies, Previcare, Inc. (“Previcare”), has signed a multi-year agreement with a major distributor that serves global retailers and drug store chains throughout North America (the “Agreement”). Magnetic North previously announced the final closing of its investment into Previcare to hold 32% of the common shares of Previcare on February 12th, 2020.
The Agreement stipulates an initial weekly purchase order for Previcare’s hand sanitizer commencing immediately. Additional recurring weekly orders for Previcare’s suite of sanitizing and disinfecting products are expected to be arranged in the coming days and weeks.Jeffrey Fredenburgh, President and CEO of Previcare stated, “We are very excited to have this agreement in place as it provides incredible access to the US and Mexican markets through a series of global retailers and drug store chains. We anticipate Previcare to generate $30 million of revenue in this calendar year.”Kevin Spall, Co-CEO of Magnetic North said, “After four and a half years of Magnetic North management and board expertise supporting Previcare on its corporate development and scale up, this Agreement signifies a major step forward in the revenue growth for Previcare, which will be of significant benefit to Magnetic North shareholders.”In the current environment, Previcare is in advanced discussions on a number of additional supply agreements and Magnetic North will keep shareholders up to date on all developments as they transpire.About PrevicareThe World Health Organization (“WHO”), the U.S. Centers for Disease Control and Prevention (“CDC”) and the U.S. Environmental Protection Agency (“EPA”) have confirmed that the 2019 novel coronavirus (2019-nCoV), also referred to as COVID-19, has met the conditions outlined in the CDC and EPA’s emerging viral pathogens guidance and has triggered the emerging viral pathogen policy.Previcare markets its healthcare and consumer-focused EPA and FDA registered hand sanitizer and hard surface disinfectants under the AllDay®, GR-AD Pro®, and CAx™ trademarks following the acquisition in late-2019 of the AllDay® and GR-AD Pro® business units from General-Resources, LLC.About Magnetic North Acquisition Corp.Magnetic North invests and manages businesses on behalf of its shareholders and believes that capital alone does not always lead to success. With offices in Calgary and Toronto, our experienced management team applies its considerable management, operations, and capital markets expertise to ensure its investee companies are as successful as possible for shareholders. Magnetic North shares trade on the TSX Venture Exchange under the stock symbol MNC. For more information about Magnetic North, visit its website at www.magneticnac.com. Magnetic North’s securities filings can also be accessed at www.sedar.com.Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATIONThis news release contains “forward-looking information” within the meaning of Canadian securities legislation. Forward-looking information generally refers to information about an issuer’s business, capital, or operations that is prospective in nature, and includes future-oriented financial information about the issuer’s prospective financial performance or financial position. The forward-looking information in this news release includes information regarding additional recurring weekly orders for Previcare’s suite of sanitizing and disinfecting products, forecast annual revenue for Previcare for 2020, probable benefits to Magnetic North shareholders, and the potential for additional supply agreements for Previcare, among other items.The Company has made certain material assumptions, including but not limited to: prevailing market conditions; general business, economic, competitive, political and social uncertainties; including, but not limited to, the uncertainties caused by the Covid-19 pandemic and related and unrelated force majeure occurrences; and, the ability of the Company to execute and achieve its business objectives to develop the forward-looking information in this news release. 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.Actual results may vary from the forward-looking information in this news release due to certain material risk factors. These risk factors include but are not limited to: adverse market conditions; reliance on key and qualified personnel; and regulatory and other risks associated with the industries in which the Company’s portfolio companies operate, in general. The Company cautions that the foregoing list of material risk factors and assumptions is not exhaustive.The Company assumes no obligation to update or revise the forward-looking information in this news release, unless it is required to do so under Canadian securities legislation.