EDMONTON, Alberta , Feb. 27, 2018 (GLOBE NEWSWIRE) — Radient Technologies Inc. (“Radient” or the “Company”) (TSX Venture:RTI) announced today that it has released its third quarter financial results for the fiscal year ended March 31, 2018. The reviewed financial statements, Management’s Discussion and Analysis, and the CEO & CFO certifications for the period ended December 31, 2017 are available on www.SEDAR.com.
Key Highlights for Q3 2018
• The Company finalized a Master Services Agreement (“MSA”) with Aurora Cannabis Inc. (“Aurora”) (TSX:ACB) (OTCQX:ACBFF) (Frankfurt:21P) (WKN:A1C4WM) related to the supply of standardized cannabis extracts for Aurora using its proprietary MAPTM technology. The agreement has an initial term of five years, with an option for Aurora to renew the agreement for an additional five years. The agreement will cover services delivered in Canada, Australia, and the European Union with Aurora having the right to negotiate with the Company to expand the jurisdictions covered. The MSA includes an Investor Rights Agreement that provides Aurora with certain rights to participate in future offerings, providing Aurora with the option to expand its ownership in the Company up to 19.99%.
• Aurora completed a private placement of 4,541,889 units for total proceeds of $6.2 million, with each unit consisting of one common share of Radient and one common share purchase warrant. Units were priced at $1.37. Each warrant gives Aurora the right to purchase one common share of Radient for $1.71 for a period of 24 months.
• Terry Booth, Founder and CEO of Aurora Cannabis Inc. was appointed to the Company’s Board of Directors.
• The Company announced the signing of a Master Services Agreement with Terra Life Sciences group (“TLS”) pursuant to which the Company has agreed to perform certain services for TLS using its proprietary MAPTM technology, in relation to supply of standardized cannabis extracts. The agreement has an initial term of five years, with an option for TLS to renew the agreement for an additional five years.
• The Company completed the previously announced conversion of $6,210,633 of debt (inclusive of interest) with AVAC Ltd. (“AVAC”), an arm’s length third party creditor, for 9,424,330 common shares at a price of $0.66 per share. The conversion is a significant transaction in the Company’s plans to continue strengthening its balance sheet.
• Health Canada released their “Proposed Approach to the Regulation of Cannabis” (the “Proposals”) publication. The Company is pleased with the progressive nature of the Proposals and that Radient’s business model would be a consistent fit within a healthy, inclusive market for cannabis products under the Proposals.
• 1,754,815 common shares related to stock option exercises were issued for proceeds of $1,163,548 and 39,362,962 common shares related to warrant exercises were issued for proceeds of $12,718,099.
• 933,333 units of the Company were issued related to finders’ options exercises for total proceeds of $420,000 at an exercise price of $0.45. These units included issuance of 933,333 common shares and 466,667 common share purchase warrants entitling the holder to subscribe for additional common shares at a price of $0.70 per common share until March 9, 2019.
• As of December 31, 2017, the cash position was strong at $24.4 million.
Post Reporting Events
• Health Canada notified the Company that its Licensed Dealer application pursuant to the provisions of the Controlled Drugs and Substances Act had been approved. The licence allows the Company to conduct research and develop products related to cannabis at its Edmonton research and development facility.
• The Company announced the signing of a Master Services Agreement with Bonify pursuant to which the Company has agreed to perform certain services for Bonify using its proprietary MAPTM technology, in relation to supply a variety of cannabis extracts. The agreement has an initial term of five years, with an option for Bonify to renew the agreement for an additional five years.
• The Company was named to the 2018 TSX Venture 50 list of companies. The Venture 50 are the top ten companies listed on the TSX Venture Exchange in each of five major industry sectors – mining, energy & energy services, clean technology & life sciences, diversified industries and technology – based on a ranking formula with equal weighting given to return on investment, market cap growth, trading volume and analyst coverage. All data was as of December 31, 2017. Radient was ranked #1 of the 10 companies to have qualified within the diversified industries sector.
• The Company entered into a binding letter of intent with 1396730 Alberta Ltd, a company owned by the Amnor Group, to acquire a 100% interest in 1631807 Alberta Ltd. (the “JV Company”). The Amnor Group is controlled by Harry Kaura, a director of the Company. The JV Company owns the land and building that contains the 20,000 square feet manufacturing facility in Edmonton, Canada operated by Radient. Pursuant to this transaction, Radient will be issuing 1,246,449 Common Shares to 1396730 Alberta Ltd. as consideration for a 100% ownership in the JV Company. This transaction remains subject to certain customary closing conditions, including (i) the satisfactory completion of due diligence by Radient; (ii) the execution of definitive documentation; and (iii) the approval of the transaction by the TSX Venture Exchange.
Denis Taschuk, President and CEO of Radient commented, “During Q3 we have seen substantial developments that have strengthened Radient’s position as a market leader in extraction solutions for the cannabis industry. The signing of Master Services Agreements with established private and public Canadian-Licensed Producers of cannabis will provide Radient with near-term revenues as we continue to execute long-term strategies, such as the expansion of our business operations in Europe, and the current expansion of our Edmonton manufacturing facility, which we expect to be completed in mid-calendar 2018.”
Radient extracts natural compounds from a range of biological materials using microwave assisted processing (“MAP™”), a patented technology platform which provides superior customer outcomes in terms of ingredient purity, yield, and cost. From its 20,000-square foot manufacturing plant in Edmonton, Alberta, Radient serves market leaders in industries that include pharmaceutical, food, beverage, natural health, personal care and cannabis markets. Visit www.radientinc.com for more information.
SOURCE: Radient Technologies Inc.
Denis Taschuk, Chief Executive Officer,
Chief Financial Officer,
Forward Looking Information:
Information set forth in this news release contains forward-looking information and statements that are based on assumptions as of the date of this news release. These statements reflect management’s current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. The terms and phrases “goal”, “commitment”, “guidance”, “expects”, “would”, “will”, “continuing”, “drive”, “believes”, “indicate”, “look forward”, “grow”, “outlook”, “forecasts”, “intend”, and similar terms and phrases are intended to identify these forward-looking statements, including but not limited to statements regarding the completion of shares for debt transaction. The Corporation cautions that all forward-looking information and statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Corporation’s control. Such factors include, among other things: risks and uncertainties relating to the Corporation’s ability to complete the proposed shares for debt transaction. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, the Corporation undertakes no obligation to publicly update or revise forward-looking information.
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.