Chemesis International Inc. Enters into Binding Agreements to Acquire Fully Licensed Cannabis Extraction and Manufacturing Facility
Chemesis, Inc. (CSE: CSI) (OTC: CADMF) (FRA:CWAA)
Chemesis International Inc. Enters into Binding Agreements to Acquire Fully Licensed
Cannabis Extraction and Manufacturing Facility
The acquisition of a fully licensed cannabis facility will expand Chemesis’ capabilities to process over
500,000 kg of cannabis annually within the U.S.
March 7, 2019
Vancouver, BC – Chemesis International Inc. (CSE: CSI) (OTC: CADMF) (FRA: CWAA) (the “Company” or
“Chemesis”), announces it has entered into binding agreements to acquire 100% of a fully -operational
extraction and manufacturing facility in Cathedral City, California (“Facility”). Once completed, this
transaction (“Acquisition”) will expand the Company’s processing ability to over 500,000 kg of cannabis
annually. The new state-of-the-art facility is fully li censed, and the Acquisition is expected to double the
Company’s current capacity to process large amounts of cannabis to extract THC, CBD and other
cannabinoid and terpene products.
The Facility is located within close proximity to the Company’s existing l icensed extraction facility, which
commenced operations this quarter. Upon completion, the Acquisition will permit the Company to
operate two fully licensed and commercialized facilities, which is expected to streamline resources for
the Company’s controlled expansion plan within the U.S.
The Acquisition will result in the Company acquiring control over the following licenses:
● Cannabis Business Local License, #MCL-17-007-M-18
● Cannabis Business Local License, #MCL-17-007-C-18
● Type 7 Manufacturing License – Adult & Medical Cannabis Products, #CDPH-T00000362
Furthermore, the Company is exploring the possibility of processing hemp at the Facility for full
spectrum plant extracts rich in CBD and leveraging the hemp legalization provisions of the 2018 U.S.
Farm Bill to capitalize on the expected increased demand for CBD. It has been estimated that the CBD
market will have a value of over $2.1 billion by 2020 1. Legislation is currently pending in California that
would accommodate incorporat ing hemp -derived cannabinoids and terpenes into the currently
regulated cannabis supply chain (similar to neighboring legal cannabis states like Oregon), as well as
non-THC-infused food, beverages and cosmetics.
“The Company will, upon completion of the Acquisition, significantly increase its production and
manufacturing capabilities in the U.S.,” said CEO of Chemesis, Edgar Montero. “The addition of this new
facility will allow the Company to extract high -quality cannabinoids and terpenes for use in a wi de
variety of consumer products. Chemesis will then be able to leverage its existing expertise in extraction,
distribution, and sales to continue growing revenues and build long -term value. I believe this expansion
will open up considerable new revenue op portunities for the Company when we begin processing
hemp,” added Montero.
1 Hemp Business Journal
Chemesis, Inc. (CSE: CSI) (OTC: CADMF) (FRA:CWAA)
Under the terms of this acquisition, Chemesis will pay $1,000,000 USD 90 days from closing and issue
4,600,000 shares. The stock is subject to 36 -month lock -up/leak-out guidelines . The Acquisition is
expected to close on or about March 30, 2019.
On Behalf of The Board of Directors
Edgar Montero
CEO and Director
About Chemesis International Inc.
Chemesis International Inc. is a vertically integrated global leader in the cannabis industry, currently
operating within California, Puerto Rico, and Colombia.
Chemesis is developing a strong foothold in key markets, from cultivation, to manufacturing, distribution
and retail. Chemesis has facilities in both Puerto Rico and Cali fornia, allowing for cost effective
production and distribution of its products. In addition, Chemesis leverages exclusive brands and
partnerships and uses the highest quality extraction methods to provide consumers with quality
cannabis products.
Chemesis will add shareholder value by exploring opportunities in emerging markets while consistently
delivering quality product to its consumers from seed to sale.
Investor Relations:
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Forward-Looking Information: This news release contains "forward -looking information" within the meaning of
applicable securities laws, including in relation to statements regarding the Acquisition, the anticipated benefits of
the Acquisition, the expected size of the CBD market, the Company’s ability to increase production of various
cannabidiol products, and generally regarding the business, products and future of the Company’s business, its
product offerings and plans for sales and marketing, including upon completion of the Acquis ition. 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 r isks that the Acquisition will not be completed as proposed or
at all, that the anticipated benefits of the Acquisition will not materialize, that the CDB market will not expand as
anticipated, that the Company will not be able to expand production of CDB products at the rate anticipated upon
Chemesis, Inc. (CSE: CSI) (OTC: CADMF) (FRA:CWAA)
closing of the Acquisition (or at all), and generally 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. E xcept 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