VANCOUVER, British Columbia, April 01, 2019 (GLOBE NEWSWIRE) -- Isodiol International Inc. (CSE: ISOL) (OTCQB:ISOLF) (FSE: LB6B.F) (the?"Company" or "Isodiol") today announced the sale of its wholly owned subsidiary BSPG Laboratories Ltd. ("BSPG") to a U.K. based private equity group ("buyer") for US$14,000,000 in cash installments. As a part of the transaction, Isodiol has secured an off-take supply agreement with the buyer to ensure continued distribution of its Purodiol and Isodiolex products.
A first installment of US $5,000,000 was paid on March 29, 2019, a second installment of US$5,000,000 is due by June 26, 2019, a third installment of US$2,000,000 is due by September 26, 2019, and a final installment of US$2,000,000 shall be payable upon the expansion of BSPG's production capacity into its newly leased 20,000+ sq. ft. laboratory facility that is expected to increase BSPG's capacity by 8-10 times its current capacity.
"The sale of BSPG is bittersweet for us," said Marcos Agramont, CEO of Isodiol. "We are great believers in the future of API CBD for clinical applications and future pharmaceutical products. Fortunately, this sale will provide us with the supply necessary to fulfill our Purodiol and Isodiolex production needs and clinical research projects at a below market cost, with the ability to scale in step with BSPG's expansion, but without having to incur dilution from raising the cash necessary for the expansion. In effect, Isodiol will see a return of the cash committed to acquire BSPG, while retaining the benefits it sought in the acquisition."
Isodiol's board of directors also has concluded its recent efforts to eliminate certain costly long-term contracts and other liabilities from its balance sheet and future cash flow obligations totalling approximately US$11,809,539 in exchange for the new issuance of 6,587,170 shares at an average weighted price of CAN$1.89 per share.
"The board of directors is pleased to be entering Isodiol's new fiscal year commencing April 1, 2019 with a cleaner slate and focused vision," said Agramont.
About Isodiol International Inc.
Isodiol International Inc. is focused on the nutritional health benefits that are derived from hemp and is a product development, sales, marketing and distribution company of hemp-based Consumer Packaged Goods (CPG) and solutions. Isodiol has commercialized a 99%+ pure, naturally isolated CBD, including micro-encapsulations, and nano-technology for quality consumable and topical skin care products. The Company received approval for its CBD as an Active Pharmaceutical Ingredient (API) for use in Finished Pharmaceutical Products (FPPs), as was announced on April 26, 2018. Isodiol's growth strategy includes the development of over-the-counter and pharmaceutical drugs and continued international expansion into Latin America, Asia, and Europe through the proliferation of its various brands, including the recently acquired CBD Naturals® portfolio of brands and proprietary technologies.
ON BEHALF OF THE BOARD
Marcos Agramont, CEO & Director
Forward-Looking Information: This news release contains "forward-looking information" within the meaning of applicable securities laws relating to statements regarding the Company's business, proposed arrangement with creditors, products and future the Company's business, its product offerings and plans for sales and marketing. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance and developments to differ materially from those contemplated by these statements depending on, among other things, the risks that the Company's products and plan will vary from those stated in this news release and the Company may not be able to carry out its business plans as expected. Except as required by law, the Company expressly disclaims any obligation and does not intend, to update any forward-looking statements or forward-looking information in this news release. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct and makes no reference to profitability based on sales reported. The statements in this news release are made as of the date of this release.
The CSE has not reviewed, approved or disapproved the content of this press release.
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