THC to license NAC's successful medical clinic model for replication in the Australian and New Zealand markets
OTTAWA, Dec. 6, 2017 /CNW/ - National Access Cannabis Corp. ("NAC" or the "Company") (TSX VENTURE: NAC), Canada's best practices leader in delivering secure, safe, and responsible access to legal medical cannabis, today announced that it has signed a binding license agreement ("the agreement") with The Hydroponics Company Limited. ("THC") (ASX: THC), whereby THC will license NAC's medical clinic operation model for an initial period of 10 years in Australia and New Zealand. The agreement also permits THC to extend the licensing agreement for an additional period of 10 years, with first right of refusal for potential development elsewhere in Asia.
Under the agreement, NAC has agreed to provide to THC exclusive access to certain intellectual property and marketing expertise of NAC in connection with the development of a professional cannabis clinic model in Australia and New Zealand. NAC will also provide THC with access to NAC's extensive relationships with Canadian Licenced Producers and new medicinal products. In consideration, THC has agreed to pay NAC a licensing fee of $500,000 Australian dollars upon or before the second anniversary of the agreement or upon successfully achieving an initial gross revenue milestone of $1,000,000 Australian dollars whichever occurs first. Thereafter, THC will pay NAC ongoing quarterly royalties equivalent to 7.5% of its gross revenue until such time as the licensing agreement expires.
"This agreement is an important first step in NAC's international expansion and the Australian medicinal cannabis market represents a prime region for development," said Mark Goliger, CEO of National Access Cannabis. "We look forward to sharing NAC's extensive experience and knowledge in successfully operating in Canada's growing cannabis market and leverage our clinical model to provide safe and secure access to medicinal cannabis products for patients in Australia and New Zealand, and to further developing the partnership between our two innovative and creative companies."
"We are delighted to partner with such a professional company as NAC," said David Radford, CEO of The Hydroponics Company. "Having visited their medical clinic in Ottawa, I believe that the quality processes and care that they have developed for their patients has a real and exciting place in the Australian marketplace."
About National Access Cannabis
National Access Cannabis is Canada's best practices leader in delivering secure, safe, and responsible access to legal medical cannabis. NAC enables patients to gain knowledge and the legal medical documentation required to navigate Canada's disparate network of authorized Licensed Producers of Cannabis. Through its Canada-wide network of care centres, NAC has partnered with health professionals to improve the quality of life of its local members and provide services designed to inform, educate and supply expert advice.
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This press release contains forward-looking statements. More particularly, this press release contains forward-looking statements concerning the NAC's international expansion plans, the sharing of experience and knowledge with international partners, and the future relationships between the parties. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by NAC. Although NAC believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because NAC cannot give any assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the medical and potential marijuana industry in general.