Tidal Royalty Corp. Announces Letter of Intent with Vitalis Extraction Technology to Provide Royalty Financing for Cannabis Extraction Equipment
Toronto, Ontario (Newsfile Corp. - July 11, 2018) - Tidal Royalty Corp. (CSE: RLTY.U) ('Tidal Royalty'), a leading provider of royalty financing to licensed U.S. cannabis operators, is pleased to announce that it has entered into a letter of intent ('LOI') with Vitalis Extraction Technology ('Vitalis') on July 10, 2018 to provide royalty financing to U.S. licensed operators purchasing products from Vitalis's premium range of commercial large-scale extraction equipment solutions.
Vitalis, a leading extraction equipment provider, is renowned for their engineering, producing some of the highest-flowing industrial supercritical CO2 extraction systems for the cannabis industry. Regarded for their reliability, scalability, and continuous operation, Vitalis systems are designed and manufactured in accordance with ASME and CSA Standards. Vitalis has sold extraction equipment across the globe and its products are increasingly being purchased by licensed U.S.-based cannabis operators looking to expand their high-quality extraction business.
Pursuant to the LOI, Tidal Royalty will provide Vitalis with a facility up to US $5.0MM to finance extraction equipment purchases by U.S. licensed operators. Vitalis customers that utilize the financing pay Tidal Royalty a cash royalty based on the number of grams of oil produced. The closing of the transaction contemplated by the LOI is subject to, among other things, the successful negotiation of definitive agreements, which is currently in progress. Tidal Royalty expects to announce further particulars in respect to the contemplated transaction with Vitalis upon the execution of a definitive agreement between the parties.
'We are very excited to apply our royalty financing product to such a promising vertical of the cannabis market,' said Paul Rosen, CEO & Chairman of Tidal Royalty. 'We have been following Vitalis' success and are very impressed with the quality of their extraction technology. We expect that adding Tidal Royalty's innovative financing solutions as an option will create real value for licensed operators. The immediate demand that we are seeing is very promising and seems to reflect that.'
Concurrent with the LOI, Tidal Royalty and Vitalis are also pleased to announce that an agreement has been reached for the first customer to utilize the financing facility. The customer - a California-based licensed operator ? will be purchasing the Vitalis Q-90 HP. The purchase will utilize approximately 10% of the total funding facility. Both Tidal Royalty and Vitalis are currently in discussions with other potential customers interested in utilizing the royalty financing facility to purchase extraction equipment.
The extraction market is rapidly developing as cannabis consumers demand a broader selection of products. Cannabis oil and cannabis oil-infused products, such as edibles, are among the fastest growing product verticals in the industry. As a result, licensed operators are increasingly focusing on increasing the quality and purity of their manufactured consumables.
This is the 4th letter of intent that Tidal Royalty has announced in the past 3 weeks. In addition to this LOI, the company has entered into letters of intent for large-scale expansion projects in California, Nevada and Massachusetts. Tidal Royalty is also in the process of evaluating multiple additional financing opportunities across the U.S., including in California, Florida, Arizona, Ohio, Michigan, New York and Nevada. Tidal Royalty intends to provide further information on those discussions when the parties reach an agreement and execute an LOI.
Tidal Royalty has raised approximately $40MM to date by way of private placements, which it intends to use primarily for royalty financings and for general corporate purposes. The company was founded by experienced cannabis industry executives and provides expansion financing to licensed U.S. operators across multiple verticals, including cultivation, processing and manufacturing, dispensing, and ancillary services. Tidal Royalty directs interested stakeholders to visit its website at www.tidalroyalty.com to view the company's Corporate Presentation for more details and the CSE's website to view the company's Listing Statement.
About Tidal Royalty
Tidal Royalty provides royalty financing to the U.S. regulated cannabis industry. Led by an executive team with extensive industry experience in Canada and the U.S., Tidal Royalty provides operators with the funding they need to grow their business. Operators benefit from non-dilutive capital and investors get top-line access to a diversified portfolio of companies that will form the future of this transformative industry.
For further information, please contact:
Tidal Royalty Corp.Terry Taouss, PresidentEmail: email@example.comPhone: 416.710.8377
This news release contains certain 'forward-looking information' within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as 'plan', 'continue', 'expect', 'project', 'intend', 'believe', 'anticipate', 'estimate', 'may', 'will', 'potential', 'proposed' and other similar words, or information that certain events or conditions 'may' or 'will' occur. Readers are cautioned that forward-looking information contained in this new release is not based on historical facts but instead is based on reasonable assumptions and estimates of management. Forward-looking information contained in this news release includes, but is not limited to: the ability to enter into definitive documentation in respect of letters of intent currently entered into by the company, the ability of the company to enter into additional letters of intent and associated definitive documentation with current or further proposed investee companies, the operating and financial performance of any investee company to be funded by Tidal Royalty from time to time, the ability of the company to generate revenue or realize profit through royalty agreements with any future investee companies, the anticipated use of proceeds from private placements completed by the company and the effectiveness of the company's Advisory Board in providing strategic advice. Forward-looking information contained herein is based on the opinions and reasonable assumptions and estimates of management as at the date hereof, and is subject to a variety of known and unknown risks and uncertainties and other factors that could cause actual events or results of the company to differ materially from those expressed or implied in the forward-looking information. Such factors include: U.S. regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change, risks relating to anti-money laundering laws and regulation, other governmental and environmental regulation, public opinion and perception of the cannabis industry, risks related to the enforceability of contracts, the requirement by the company to obtain additional financing, the limited operating history of the company, timeliness of government approvals for granting of permits and licences needed by any future investee companies, including licences to cultivate cannabis, the actual operating and financial performance of any future investee company may differ materially from that anticipated by the company, competition and other risks affecting the company in particular and the U.S. cannabis industry generally and the risk factors effecting the company disclosed in the listing statement of the company available at www.sedar.com. Because of such risks, uncertainties and other factors, investors should not place undue reliance on the forward-looking information contained herein. The company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. The foregoing statements expressly qualify the forward-looking information contained herein. This release does not constitute an offer for sale of, nor a solicitation for offers to buy, any securities in the United States.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
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11.07.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English Company: Tidal Royalty Corp.
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