ANGUILLA, British West Indies, Sept. 27, 2019 /CNW/ - KMT-Hansa Corp. ("KMT" or the "Company"), is pleased to announce that it has closed a bridge financing (the "Bridge Financing"), as previously announced on press releases dated August 27, 2019 and September 9, 2019, of an aggregate of 7,515,152 common shares of the Company (the "Shares"), at a price of $0.0825 per Share for gross proceeds of $620,000. The Shares were issued to HDD Investment Holdings Corp. ("HDD"), an insider of the Company through virtue of its ownership of 14,103,827, or 51% of the total issued and outstanding common shares of KMT.
The Shares are subject to a statutory four month and one day hold period, expiring January 26, 2020. In addition, the TSX Venture Exchange may also require that the Shares be subject to escrow provisions as a result of the Company's proposed acquisition of 50% of the issued and outstanding securities in the capital of QXCENTURY Ventures Ltd. ("QXCV"), an arm's length party and its acquisition of HDD's Lumuwan Forest Farm property (collectively, the "Transactions").
The proceeds of the Bridge Financing will be used to fund the Company's expenses associated with the closing of the Transactions. Shareholders are urged to refer to the Company's press release dated August 27, 2019 for the complete details of the Transactions.
Pure Global Cannabis Inc.
KMT is also pleased to announce that it has entered into a Joint Development Agreement with Pure Global Cannabis Inc. ("Pure Global"), an arm's length party to the Company, on September 19, 2019 (the "Agreement"). Pursuant to the terms of the Agreement, Pure Global, through its wholly owned subsidiary, PureSinse Inc., will act as KMT's management and development partner with respect to the processing, extraction, cultivation and manufacturing of hemp and hemp related products on the Company's holdings in the province of Yunnan (the "Yunnan Project"). The Agreement is subject to exchange and other requisite approvals. In its role as a management and development partner, Pure Global will be responsible for the following:
(i) providing the know-how and expertise to design and manage the development and deployment of the Yunnan Project;
(ii) furnishing technical assistance pertaining to the production of industrial hemp and related products, including design and executing the industrial hemp production and extraction processes;
(iii) managing the day-to-day operations and ongoing cultivation, extraction, production and manufacturing activities in connection with the Yunnan Project; and
(iv) securing and maintaining a license to import the products into Canada.
In connection with the Agreement, Pure Global is entitled to receive 30% of the net profits derived from activities of the Yunnan Project. Pure Global has been granted, at a reasonable market price, the right of first refusal to (i) sell and distribute products manufactured in connection with the Yunnan Project (ii) buy all products manufactured in connection with the Yunnan Project for re-packaging, development, manufacturing, sales and distribution in Canada and (iii) buy raw materials produced in connection with the Yunnan Project.
About Pure Global Cannabis
Pure Global is an innovation-based cannabis company led by experienced pharma, biotechnology, horticultural, and consumer packaged goods experts. The company's wholly owned subsidiary, PureSinse Inc., is a licensed producer under the Cannabis Act. Pure Global's Brampton campus houses facilities for vertically farmed cultivation, R&D, extraction, manufacturing, and distribution. Pure Global will produce branded and white-labeled cannabis products for the medical, pharmaceutical, wellness, health & beauty, natural health, food & beverage, craft, and recreational legal markets with uniquely formulated and purified concentrates and dried flower. Pure Global is using the Canadian market as a springboard to develop and manufacture GMP-compliant premium quality cannabis products for international sale and distribution with a goal to become one of the most trusted premium international cannabis brands.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains "forward-looking information" within the meaning of applicable securities laws relating to the proposal to complete the transactions and associated transactions, including statements regarding the terms and conditions of the transactions. Although the Company believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risks that the parties will not proceed with the transactions and associated transactions, that the ultimate terms of the transactions and associated transactions will differ from those that currently are contemplated, and that the transactions and associated transactions will not be successfully completed for any reason (including the failure to obtain the required approvals or clearances from regulatory authorities). The statements in this press release are made as of the date of this release. The Company undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the Company, its securities, or its financial or operating results (as applicable).
SOURCE KMT-Hansa Corp.
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