/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
WIRE SERVICES/
VANCOUVER, Sept. 21, 2018 /CNW/ - BLOCKStrain TECHNOLOGY
CORP. (the "Company" or "BLOCKStrain") (TSXV:
DNAX.V) is pleased to announce it has entered into a Term Sheet
that sets forth the terms and conditions of a technology
partnership (the "Agreement") with Integral Genomics Inc. (dba
Lighthouse Genomics Inc.) ("Integral"), which operates an
advanced testing laboratory for DNA and Quality Assurance testing
of cannabis products.
Integral's operating entity Lighthouse Genomics is led by Dr.
Gina Conte, an award winning expert
in evolutionary genetics, who has spearheaded ground breaking
discoveries of genetic traits within plants, as well as
Tim Harvey, a foremost expert in
cannabis breeding and strain propagation with decades of experience
in the Canadian cannabis market. Lighthouse provides cutting edge
technology and scientific processes which will support
BLOCKStrain's registry of genetic profiles of cannabis strains, and
will support BLOCKStrain's initiative to provide quality assurance
data to consumers and governmental regulators.
"BLOCKStrain has developed enterprise technology that allows us
to collect, store and manage this critical data in an immutable,
blockchain-protected database," explained BLOCKStrain Chief
Executive Officer Robert Galarza.
"However, since we rely on third party labs to provide us with that
data it is imperative for us to support scientific advancements in
genetic testing and analysis. The Agreement we have reached with
Lighthouse Genomics allows us to support advancements in science
and technology, which can then be offered to our clients."
As part of the Agreement, BLOCKStrain will invest up to
$750,000 in Integral, subject to the
completion of due diligence and the entering into of the definitive
agreements, as well as the successful completion of various
benchmarks and milestones. The investment will be made in the form
of a convertible note at seven percent interest per annum, and is
convertible to Class A common shares in Integral at BLOCKStrain's
option, at an agreed upon pre-money valuation of approximately
$1.7 million dollars CAD.
"We have been working with the incredibly talented team at
Integral Genomics for months now, and we believe the testing
regimens they've developed will become a critical aspect of our
product offering to Licensed Producers, regulatory bodies and even
to consumers," Galarza said. "Product integrity is paramount to the
success of the cannabis industry and together BLOCKStrain and
Lighthouse will bring transparency, trust and a deeper scientific
understanding about what cannabis strains can do for patients and
customers. We are excited about combining our world class teams in
science and technology."
Integral's founder Tim Harvey
says the partnership was a logical step for both companies.
"Lighthouse and BLOCKStrain share a common vision of the
positive evolution we're aiming to support as the industry proceeds
into the legal era," said Harvey. "As a company, Lighthouse exists
to shine a light on a plant's genetic code, and also to cast a
light on positive players in the industry, companies that proudly
stand behind their product and practices.
"That's exactly what BLOCKStrain is here to do, and by joining
forces we're more than the sum of our parts."
In addition to providing ongoing services for the BLOCKStrain
software solution, Integral will function as an in-house genetics
think tank and research division, assisting in design of new
genetics-based services for the industry.
ON BEHALF OF THE BOARD OF DIRECTORS
"Robert Galarza"
Robert Galarza
Chief Executive Officer and Director
About BLOCKStrain Technology Corp.
BLOCKStrain Technology Corp. (TSX-V: DNAX.V) has developed the
first integrated blockchain platform that registers and tracks
intellectual property for the cannabis industry. Strain protection
and genetic identification are major issues for growers and
breeders, and this new technology allows them to identify and
secure rights to their valuable intellectual property (IP). The
BLOCKStrain platform also streamlines the administrative process of
genetic and mandatory quality-control testing for legal cannabis,
cutting the administrative time and expense in half.
BLOCKStrain's proprietary, immutable, cryptographically-secure
blockchain-technology establishes a global 'single source of truth'
for cannabis strains, their ownership, potency and chemical makeup.
In an industry where a popular strain can be worth millions of
dollars, it is crucial to the industry's future to quantify
genetics, potency and equivalencies between cannabis products.
BLOCKStrain delivers needed transparency to growers, retailers,
regulators, and consumers who have struggled to find realistic
solutions to these logistical challenges. The good news is that the
blockchain technology implemented by BLOCKStrain is ideally suited
to solve these kinds of problems by implementing an immutable and
non-corruptible record of transactions.
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.
Disclaimer for Forward-Looking Information (Always See If
This Needs Updating)
Certain statements in this
release are forward-looking statements, which reflect the
expectations of management regarding the Company's future business
plans. Forward-looking statements consist of statements that are
not purely historical, including any statements regarding beliefs,
plans, expectations or intentions regarding the future. Forward
looking statements in this news release include statements relating
to: the fact that the Agreement with Integral will lead to
advancements in science and technology which can be offered to the
Company's clients and that Integral's testing regimes will become a
critical aspect of the Company's product offering. Such statements
are based on management's current assumptions with respect to the
regulatory environment for cannabis, the expected applications of
its technology and other factors, and are subject to various risks
and uncertainties that may cause actual results, performance or
developments to differ materially from those contained in the
statements, including that: BLOCKStrain's platform may not operate
as expected; the cannabis industry may not use the BLOCKStrain
platform once it is built; legislative changes may occur that
negatively impact BLOCKStrain's business; BLOCKStrain's platform
may not adequately protect users' intellectual property; Integral's
testing regimes may not be in demand by the Company's clients; and
other factors beyond the Company's control. No assurance can be
given that any of the events anticipated by the forward-looking
statements will occur or, if they do occur, what benefits the
Company will obtain from them. Readers are urged to consider these
factors carefully in evaluating the forward-looking statements
contained in this news release and are cautioned not to place undue
reliance on such forward-looking statements, which are qualified in
their entirety by these cautionary statements. These
forward-looking statements are made as of the date hereof and the
Company disclaims any intent or obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or results or otherwise, except as required by
applicable securities laws.
SOURCE BLOCKStrain Technology Corp.