TORONTO, April 10, 2019 (GLOBE NEWSWIRE) — Dietary Excessive Worldwide Inc. (the “Firm” or “Dietary Excessive”) (CSE: EAT, OTCQB: SPLIF, FRANKFURT: 2NU) wish to congratulate Lineage Development Firm Ltd. (“Lineage”) on the signing of a definitive merger settlement of a reverse takeover transaction (the “Transaction”) between Lineage and FLRish, Inc., a California company d/b/a Harborside (“Harborside”) (see Lineage and Harborside’s press launch on Feb 11, 2019).
Harborside presently carries Dietary Excessive’s flagship FLÏ™ merchandise and the Firm’s wholly owned distributor, Calyx Manufacturers, Inc. (“Calyx”) provides numerous different cannabis merchandise to Harborside. Dietary Excessive additionally provides its flagship FLÏ™-branded merchandise to Lineage’s Terpene Station dispensaries in each Eugene and Portland, Oregon.
Dietary Excessive would additionally wish to report that it has signed a letter settlement with Lineage (the “Letter Settlement”) amending a part of an amended and restated letter settlement (the “Lineage Settlement”) dated February 1, 2018, in an effort to facilitate and help the Transaction. Pursuant to the phrases of the Lineage Settlement (see the Firm’s press launch on February 7, 2018), in change for sure monetary covenants and monetary help of Dietary Excessive, Lineage (amongst different consideration) issued to Dietary Excessive 1,250,000 widespread shares of Lineage, and was to order a minimum of 20% of the dispensary’s shelf area for Dietary Excessive’s merchandise, topic to availability of provide. Dietary Excessive’s monetary obligations have since been extinguished. Dietary Excessive strongly helps the Lineage-Harborside Transaction and enjoys business relationships with each corporations. As such, and conditional on the closing of the Transaction, Dietary Excessive has agreed to launch Lineage of its shelf area obligation. The Firm has additionally agreed to transform a $75,000 debt obligation it had from Lineage, into 454,545 further widespread shares of Lineage at a deemed worth of $0.165 per widespread share (the “Debt Settlement”). Completion of the Debt Settlement is topic to the approval of the Canadian Securities Alternate and the widespread shares can be topic to a four-month maintain interval in accordance with relevant securities legal guidelines.
The Letter Settlement relating to the discharge of its shelf area obligation was authorised by the impartial board members of Dietary Excessive with Adam Szweras and David Posner recusing themselves given their involvement with Lineage.
Jim Frazier, CEO of Dietary Excessive, commented, “This Letter Settlement is a crucial step within the growth of a long-term sustainable relationship with Harborside and Lineage, which we have now already cemented on the operational stage through our FLÏ™ merchandise and Calyx distribution.” Jim continued, “We wish to develop our gross sales to Harborside and Lineage based mostly on the standard and rising client demand for our merchandise, versus merely being a beneficiary of a contractual obligation. We stay up for deepening our relationship and dealing collectively within the States of California and Oregon.”
Peter Bilodeau, CEO of Lineage, added, “Lineage appreciates Dietary Excessive’s ongoing help for the Transaction, and we’re happy to announce the definitive merger settlement between Harborside and Lineage is shifting in the direction of completion. We stay up for new enterprise alternatives and potential collaborations shifting ahead.”
Andrew Berman, CEO of Harborside, commented, “Harborside enjoys working with Calyx and is happy to hold FLÏ™ merchandise in Harborside. We now have been receiving optimistic suggestions in regards to the FLÏ™-branded product strains from our shoppers. Harborside strongly appreciates the help and relationship that we have now with Dietary Excessive and appears ahead to the mutually helpful development of each companies.”