Tickers: XTSX:KDA
Tags: #Mining
Thetford Mines, Quebec - TheNewswire - August 7, 2019 - KDA Group Inc. (TSXV:KDA) ("KDA" or the "Corporation") is proud to announce that it has signed a letter of intent ("LOI") with the shareholders of Consultandgrow Inc. (the "Shareholders") on August 6, 2019 for the purchase of all the shares of Consultandgrow Inc. ("Consultandgrow").
Consultandgrow is a Canadian private corporation that provides expert-consulting services and turnkey solutions for a fast and efficient obtaining of cannabis and hemp licenses in Canada, both federally and provincially, for commercial, recreational and/or medical purposes. In addition to its services and solutions with regard to the obtaining of the licenses, Consultandgrow is also recognized for its consulting, compliance and solution services with respect to strategies, management and operations related to cannabis and hemp cultivation, processing and distribution. Since 2017, the Consultandgrow team has worked on more than 40 cannabis cultivation, processing and sale projects across Canada. The experts constituting the Consultandgrow team hold the appropriate know-how in all the important aspects to facilitate and ensure the fast obtaining of a license and the efficient launching of the operations. Totaling more than one million square feet of cannabis cultivation, one million square feet of hemp cultivation and several cannabis processing sites, the Consultandgrow network offers an abundance of solutions and services such as analysis, supply of biomass, processing into finished products and global distribution.
Consultandgrow integrates directly into KDA's corporate strategy to become an essential reference for any participant and patient regarding cannabis products and services for medical purposes.
"This potential acquisition will enable us as a group to support our ongoing and future cannabis projects and ensure the compliance of our operations and facilities with the Good Manufacturing Practices (GMP) certification and GMP Europe for future export," explains Marc Lemieux, President and Chief Executive Officer of KDA.
KDA has agreed to acquire all of the issued and outstanding common shares of Consultandgrow for an aggregate price of $1,900,000 consisting of $500,000 cash and 5,600,000 common shares of KDA representing $1,400,000 (the "Transaction") on the terms and conditions agreed substantially in accordance with the LOI. KDA and Consultandgrow are arms' length parties.
Consultandgrow has no long-term debt.
The closing of the proposed Transaction with Shareholders is expected in the coming weeks. As part of the closing, the parties shall finalize due diligence and execute the share purchase agreement with convenants, representations and warranties acceptable to the parties and all other documents to be mutually agreed by the parties or requested by the regulatory authorities.
The Transaction is conditional on obtaining all required approvals, including the final approval of the TSX Venture Exchange.
The Corporation will issue a subsequent press release to inform the progress of the Transaction.
KDA is a leading generic drug distributor and specialized solution provider in the pharmaceutical market. Today it is a respected name for quality and expertise among the different stakeholders in the pharmaceutical sector. Its management team is guided by a vision of continuing to lead the way in Quebec while extending operations across Canada and internationally. Additional information on the Corporation is available at www.groupekda.ca and on SEDAR at www.sedar.com.
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CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This press release from KDA contains forward-looking statements. Forward-looking statements are typically identified by the words assumption, goal, guidance, objective, outlook, strategy, target, and other similar expressions, or future or conditional verbs such as aim, anticipate, believe, predict, could, expect, intend, may, plan, seek, should, strive, and will. By their nature, forward-looking statements require us to make estimates and assumptions and express opinions based on current conditions and anticipated developments as well as other factors that management may deem appropriate under the circumstances. There is inherent uncertainty and significant risk in these estimates, assumptions, and opinions, particularly of a commercial, economic, and competitive nature, and they are therefore subject to change. KDA cannot guarantee that these estimates, assumptions, and opinions will prove to be accurate.
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 press release.
Marc Lemieux
Chief Executive Officer
514 622-7370
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