EMERALD HEALTH THERAPEUTICS EXPANDS STRATEGIC INVESTMENT IN VANC
Vanc Pharmaceuticals Inc. (VANC.V) has entered into a supply and distribution agreement with an affiliate of Emerald Health Therapeutics Inc., pursuant to which Vanc was granted rights to sell and distribute certain proprietary endocannabinoid-supporting products in Canada to licensed pharmacies. The parties intend to set a minimum sales benchmark with respect to the sale and distribution of the products over the next 30 days on a non-exclusive basis. Concurrently, Vanc entered into an arrangement with a different affiliate of Emerald, pursuant to which the parties expressed their intention to work together to distribute medical cannabis to Canadian pharmacies if pharmacies become authorized to do so by Health Canada.
"Pharmacies provide a safe and trusted place to purchase medicine, while also offering expert advice regarding the use of medicines. They are the ideal channel for the distribution of medicinal cannabis," said Bob Rai, chief executive officer of Vanc. "We plan to work closely with Emerald, focusing on generating information and products most relevant to the pharmacy channel, to help ensure that we will be ready to market through this channel if the distribution of cannabis is ultimately approved by one or more provinces."
"I am very pleased to see this agreement come to fruition. Our partnership with Emerald is an important step to expand our OTC [over the counter] line with new innovative products that hold huge potential," said David Hall, chairman of Vanc. "We continue to review further unique opportunities to extend our product portfolio, including other endocannabinoid-supporting products," he added.
Concurrent with the execution of the agreements, Vanc issued to Emerald's affiliate warrants to acquire 3,030,303 common shares at 33 cents per share for 24 months (subject to termination if the distribution agreement is earlier terminated). The warrants are subject to accelerated expiry if the Vanc shares trade on the TSX Venture Exchange at $1 or more for 25 consecutive trading days. Emerald's affiliate has also agreed not to exercise certain of the warrants if, as a result of such exercise, it (and its affiliates) would become a control person of Vanc, unless shareholder approval is acquired.
"Our goal is to be strongly positioned to sell medicinal cannabis through pharmacies. With Vanc's existing and developing agreements with pharmaceutical wholesalers, a national sales force and relationships with key pharmacy chain decision makers and stakeholders, Vanc would be well prepared to achieve penetration for Emerald products," said Dr. Avtar Dhillon, MD, executive chairman of Emerald. "As a starting point, we look forward to Vanc's assistance in helping us introduce Emerald's non-cannabis product line into this channel. We also believe our investment will benefit from Vanc's growth potential with its unique and expanding product line that allow pharmacies to create new clinical pharmacy services."
About Vanc Pharmaceuticals Inc.
Vanc Pharmaceuticals aims to become the partner of choice for forward-thinking pharmacies across Canada. With an established sales force, distribution network and team of highly experienced professionals in pharmacy, point-of-care testing and health technology, Vanc is growing beyond generics to provide pharmacists with innovative, value-added products and services to expand their scope of practice and support their evolving role as front-line health care providers.