TORONTO, April 20, 2018 /CNW/ - Xanthic Biopharma Inc. (CSE:XTHC) (formerly Aurquest Resources Inc.) ("Xanthic" or the "Company") is pleased to announce that it has signed a binding letter of intent with Green Mile Solutions LLC ("GMS") to develop plans to manufacture and distribute Xanthic-branded cannabis-infused products in Oregon, Nevada and Ohio. Definitive agreements for each state are expected to be finalized and structured to be fully compliant with local regulatory requirements.
Under these agreements, GMS will facilitate the manufacturing of cannabis-infused powders in licensed facilities utilizing the proprietary Xanthic process to create water soluble THC and CBD. GMS will procure sales of the finished products into the local licensed dispensary networks through existing sales and distribution channels. Xanthic-branded products are expected to be in production in each market in the second half of 2018.
Tim Moore, CEO of Xanthic, stated: "We are thrilled to have Green Mile Solutions as a strategic partner to expand our footprint in the USA. Its leadership team has tremendous strength and experience in business operations and cannabis production and handling. These three markets represent a significant increase in scale for Xanthic and represents a great addition to our existing arrangements in Colorado."
Meredith Farrow, CEO of GMS, commented: "Green Mile Solutions is pleased to add the unique product offerings and talent to our overall team that Xanthic brings."
The Company also announces Adam Mogil has been retained as a consultant to help the company as it moves forward, In lieu of a monthly compensation, Mr. Mogil has been granted 500,000 stock options at an exercise price of $0.40 for twelve months and will expire on April 18, 2019 if not exercised on or before the aforementioned date.
Xanthic, through its wholly-owned operating subsidiary, Xanthic Biopharma Limited, provides valuable intellectual property to cannabis industry participants, enabling its strategic partners to produce high quality, innovative, non-combustible cannabis, and cannabis-infused products which deliver consistent THC and/or CBD levels. Using a proprietary patent-pending process, Xanthic allows its strategic partners to deliver superior cannabinoid solubility, accurate micro-dosing, increased bioavailability and consistency versus competitive infused products.
This news release may contain forward-looking statements and information based on current expectations. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. There is no assurance that the Company will reach a definitive agreement with GMH and that such agreement will successfully produce benefits for Xanthic. Although such forward-looking statements are based on management's reasonable assumptions, there can be no assurance that such assumptions will prove to be correct. We assume no responsibility to update or revise them to reflect new events or circumstances, except as required pursuant to applicable securities laws.