Toronto, Ontario–(Newsfile Corp. – December 3, 2019) – EuroLife Brands (CSE: EURO) (FSE: 3CMA) (OTC Pink: EURPF) (“EuroLife”), a vertically integrated enterprise focused on the pan European hemp, cannabinoid, and heath & wellness sector, is pleased to announce that, based on an internal corporate review and dialogue with the Company’s strategic advisors, it has begun a due diligence assessment for a potential transaction whereby the Company’s cannabis education platforms and associated data analytics assets would be siloed into a special purpose entity (“BioScience NewCo”) that would be operated as a stand-alone enterprise. BioScience NewCo would serve as a bridge between Cannabis Education, Patient R&D, and Pharmaceutical R&D partner opportunities within the European theater. It is further envisioned that BioScience NewCo would ultimately be spun out to shareholders of EuroLife via a Plan of Arrangement under the Business Corporations Act (the “Arrangement”) at a future date and at a to be determined exchange ratio of stock dividend. The Arrangement is designed to deliver additional value to the shareholders of EuroLife by unlocking the value of the Company’s cannabis and related data analytics platforms and associated technology through efficient management, optimization of corporate structure, and synergy capture.
EuroLife is of the view that a corporate segmentation of the data analytics technology assets from the newly refocused European hemp cultivation, CBD consumer packaged goods, and health and wellness operations will serve to enhance overall stakeholder value by eradicating disambiguation of assets. Further, more singularly focused operations should allow for additional flexibility in pursuing new and tertiary business opportunities for each stand-alone entity. In addition to the ongoing operation of the Cannvas.Me cannabis data platforms, BioScience NewCo intends to, among other opportunities, assess additional avenues for growth such as:
Funding, formulating, and conducting R&D on new and novel biopharmaceutical and nutraceutical therapeutics using cannabinoids and mushrooms;
Utilization of the robust depository of captured cannabis data analytics in order to assist pharmaceutical companies in assessment of marketing and product strategy;
Partnerships and data sharing opportunities with synergistic companies in the cannabis space;
Licensing and white-labeling opportunities with private and public sector organizations;
Data capture and analytics services for clinical trial and clinical trial design studies.
BioScience NewCo will be led by current EuroLife CEO, Shawn Moniz, who possesses deep sector experience within the pharmaceutical and brand strategy marketplace having successfully deployed various projects with such Pharmaceutical companies as Astra Zeneca, Astellas, Takeda, Abbvie, Shire, Novatris, and Novo Nordisk. Mr. Moniz has a magnitude of experience in creating, executing, and facilitating patient-centric data platforms for these and a roster of other multinational organizations. Additional personnel with appropriate and pertinent skillsets will be instituted in due course.
“According to Statista, the worldwide pharmaceutical market generated revenue in excess of $1.2 Trillion USD in 2018. With aging population demographics and attitudes towards prevention, and general health and wellness on the rise, the various opportunities afforded within the space are buoyant and poised for continued growth,” stated Shawn Moniz, EuroLife CEO. He continued, “Having invested substantial financial capital alongside thousands of man hours into the development of the Cannabis data analytics platforms, we are of the belief that we have built a solid framework that is ripe for monetization and from which further growth can be built upon.”
“Working alongside our European counterparts in relation to our recently announced plans for German HempCo and the Dresden cultivation facility (as per the Nov 22nd, 2019 press release) in devising an integrated and synergetic 2020 EuroLife roadmap, I am pleased to see the continued and dedicated focus from all parties involved as we strive to achieve our stated goals,” stated Derek Ivany, Chairman of the Eurolife Advisory Board. “Decoupling the cultivation operation and the associated down-stream business segments, from those of our digital educational technology assets, will provide for greater shareholder value as both verticals will be allowed to thrive in their related yet distinct consumer markets.”
The potential Arrangement as contemplated herein is subject to, among other things, finalization of economic benefit analysis, adequate funding, appropriate corporate structure, regulatory approval, court approval, as well as approval by not less than two-thirds of the votes cast at a special meeting of EuroLife shareholders. The Company shall provide further update on the potential Arrangement in due course.
About EuroLife Brands Inc.
EuroLife Brands (CSE: EURO) (FSE: 3CMA) (OTC Pink: EURPF) is a vertically integrated enterprise focused on the pan European hemp, cannabinoid, and heath & wellness sector.
No stock exchange or securities regulatory authority has reviewed or accepted responsibility for the adequacy or accuracy of this release.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Issuer’s future plans, objectives or goals, including words to the effect that the Issuer or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company’s Management’s Discussion and Analysis and other disclosure filings with Canadian securities regulators, which are posted on www.sedar.com.
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