PHOENIX, AZ–(Marketwired – Sep 7, 2017) – Corix Bioscience Inc. (OTCQB: CXBS) formally announces that it is acquiring 3 California cannabis licenses from California-based brand, E&B Investments LLC, for $2,000,000, consisting of $250,000 cash and the balance in restricted common stock. A deposit was given on August 29, 2017 with the closing date scheduled for September 8, 2017.
The licenses consist of: (1) Type 3A (large indoor cultivation), (1) Type 6/7 (manufacturing products using volatile and non-volatile solvents), and (1) Type 11 (distribution). All licenses are addressed to an existing 20,000 square foot cultivation facility and 1,500 square foot office in Adelanto, California. Corix will assume the 8-year lease and is in discussions to acquire the building and land. Further build-out on the building is anticipated to start immediately and Corix anticipates growing to begin by the end of September of 2017.
Michael Ogburn, CEO of Corix Bioscience, states, “We are very excited to finally secure these California licenses. We have spent over a year searching for this exact scenario. Having cultivation, processing and distribution all at one location is unheard of. This will allow us to really ramp up production of our medical cultivation and now install our extraction laboratory much sooner than we anticipated. At current market prices, this will bring an anticipated $30 million in additional revenue. Add in the distribution, and revenue could top $50 million per year.”
Emily Del, General Partner at Brand E&B Investments LLC, went on to state, “We knew we wanted to be part of Corix’s team once we saw their vision and how fast they put it together. Their knowledge of tissue culture and attention to detail in the area of ‘yields’ really excited us.”
Corix is very focused on the medical side of cannabis and CBD oil growing and manufacturing, but will now have these key distribution licenses to be able to sell other growers’ products to dispensaries. This will be a huge advantage for Corix once “Recreational Marijuana” laws come into play under the Marijuana Legalization Initiative Statute under California Proposition 64 in January 2018. Ogburn went on to say, “We are going to start building our sales team immediately to take advantage of the new laws that will be coming into play that really favor us. And once our new facility comes on line, we anticipate having an advantage to sell our products at a premium price because we will know the market well.”
About Corix Bioscience Inc
Corix Bioscience, Inc. (“Corix”) is a fully reporting Wyoming corporation listed as OTCQB:CXBS. Corix is the developer of proprietary cannabis and industrial hemp strains using tissue cell cultures to propagate living plants, with plans to patent the strains to be used in the pharmaceutical medical industries.
Our methods allow us to create and breed new and existing plant strains from tissue cells free of any pathogens or disease. We grow these plants to maturity and extract the oils which are the “medicine” part of the plant. Our sales are focused towards the medical industry and we are developing brand named products to be released in early 2018.
Company headquarters are in Phoenix, Arizona and with our laboratory and processing facility in Carson City, Nevada and we grow in Genoa, Nevada. We are currently looking at expanding our footprint into Washington, Oregon, California and Arizona. The Company’s mission is to create clean and consistent products in medical grade facilities. Consistency being the key which will ultimatley yield a safer and superior product, better for people and the environment. For more information, please visit Corix’s website at www.corixbioscience.com
Forward Looking Statement
This press release, and those statements regarding Corix Bioscience (the “Company”), contain forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events and similar expressions. Forward-looking statements may be identified by use of words such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” or “potential” or similar words or phrases which are predictions of or indicate future events or trends. Statements such as those concerning potential acquisition activity, investment objectives, strategies, opportunities, other plans and objectives for future operations or economic performance are based on the Company’s current expectations, plans, estimates, assumptions and beliefs that involve numerous risks and uncertainties. You are cautioned not to place undue reliance on any forward-looking statements and the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, future events or other changes. Please refer to Company’s filings with the Securities and Exchange Commission for further information.