ORCHID
VENTURES ENTERS INTO A LICENSING
AGREEMENT
TO
LICENSE THE
ORCHID BRAND IN THREE STATES
IRVINE, CA
- May 14, 2020 -- InvestorsHub
NewsWire -- ORCHID
VENTURES, INC. (CSE: ORCD OTC: ORVRF) (the
"Company"
or "Orchid"),
a multi-state cannabis innovation company is pleased to announce it
has entered into a Licensing Agreement to license its Orchid
Essentials brand in the state of Oregon. Included in the
transaction,
is the sale of an
OLCC distribution license assigned to the Orchid Essentials'
facility in Clackamas,
Oregon and the
rights to expand into Colorado and Oklahoma, under a separate
agreement and at a later date. Licensee will do business as
Orechid
LLC,
while ownership
of the distribution license will transfer to Tine Trading Company,
LLC. Both entities are led by Senior Management for a portfolio of
multi-state, vertically integrated companies,
with 10 years of
experience in cultivation, manufacturing, and retail dispensaries.
In addition, new leadership has over 30 years of sales,
manufacturing, and supply chain experience in the Food Service and
CPG industries.
Orechid
LLC,
will assume all
operational and distribution responsibilities in Oregon during the
next 45 days.
Over the next
several months Orchid will finalize a development
plan to produce and launch Orchid Essential's products in
additional states. The current Orchid
Essentials' staff will assist new ownership during a transition
period.
Once completed,
their roles and responsibilities will be reassigned to PurTec
Delivery Systems and CELLg8® Sciences;
two of Orchid
Ventures' subsidiaries.
Terms of
the Agreement:
Orechid
LLC,
combined with
Tine Trading Company LLC,
has agreed to pay
Orchid $630,000 USD for the acquisition of Orchid's inventory and
revenue in an Oregon facility,
and the rights to
expand into Colorado and Oklahoma, plus the opportunity to secure
the rights to license Orchid Essentials in other domestic states.
Orechid LLC,
will pay Orchid a
licensing fee on all Orchid Essentials brand sales over a 10-year
term and as part of the licensing agreement, will purchase all
vaporizer hardware and packaging through PurTec Delivery Systems,
an Orchid Ventures subsidiary.
"This is a big
step forward in shifting our business strategy for Orchid
Essentials to a licensing model. The opportunity to partner with
such a high quality operation allows us to establish our licensing
terms and necessary infrastructure so that we can expand the Orchid
brand platform into additional markets throughout North
America.. Over three years ago when
starting the company, our original intention was to build Orchid
Essentials into an established household brand, and to expand that
brand equity globally through licensing partnerships like this one
with Orechid, LLC. Sean Davis and his team have
been exceptionally professional and great to deal with. I feel this
is going to be a great long-term partnership and a stepping stone
to launching Orchid Essentials products with CELLg8® technology for
rapid absorption under this licensing agreement." said Corey
Mangold, Founder & CEO.
"Over the years
our dispensary managers and leadership team have been big fans of
the Orchid brand and admirers of its high-quality reputation
throughout the State of Oregon",
explained Sean
Davis, CEO of Orechid, LLC. "We're both excited and
honored to become part of the Orchid family and help grow its
national footprint".
ABOUT
ORCHID ESSENTIALS
Orchid Essentials
is an Irvine, CA-based multi-state operator that launched in Oregon
and California in August 2017 and has since developed a mass-market
brand and loyal consumer following with its premium cannabis
products and unique vape hardware delivery system. Since July 2019,
Orchid has diversified its efforts and has brought to market
innovative services and product offerings to support brands
throughout the global cannabis industry. Orchid has diversified its
portfolio to include PurTec Delivery Systems, a company that
produces, markets and sells clean vaporizer hardware that has been
emissions tested against the most stringent standards in the world
set forth by the EU and has unrivaled product quality and value
pricing. Orchid, through
its wholly owned subsidiary, has launched a patented and
clinically proven bioavailability solution to increase the
absorption of THC and other cannabinoids making products much more
effective and an activation time of less than five minutes. With a
continued focus on brand and intellectual property development,
Orchid will continue to create new and innovative products and
technologies, then bring them to the global cannabis marketplace
and set the gold standard for delivery systems whether it's vape or
formulation sciences. Orchid's management brings significant
branding, product development and distribution experience with a
proven track record of scaling businesses and building sustainable
revenue growth through value-generating partnerships and innovation
that creates enterprise value. Learn more at https://orchidessentials.com/
ON BEHALF OF THE BOARD OF DIRECTORS – ORCHID VENTURES,
INC.
Corey
Mangold
CEO
and Director
investors@orchidessentials.com
Investor Relations
Corey
Mangold
949-357-5818
corey@orchidessentials.com
The CSE does not
accept responsibility for the adequacy or accuracy of this
release.
Safe Harbor
Statement
Except for
historical information contained herein, statements in this release
may be forward-looking and made pursuant to the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995. Words such as "anticipate",
"believe", "estimate", "expect", "intend" and similar expressions,
as they relate to Orchid Ventures, Inc. and Orchid Essentials any
of its affiliates or subsidiaries (collectively, the "Company") or
its management, identify forward-looking
statements. These statements are based on
current expectations, estimates and projections about the Company's
business based, in part, on assumptions made by management. These
statements are not guarantees of future performance and involve
risks, uncertainties, and assumptions that are difficult to
predict. Therefore, actual outcomes and results may, and probably
will, differ materially from what is expressed or forecasted in
such forward-looking statements due to numerous factors, including
those described above and those risks discussed from time to time
in the Company's Canadian securities regulatory filings with
sedar.com, Factors which could cause
actual results to differ materially from these forward-looking
statements include such factors as (i) the development and
protection of our brands and other intellectual property, (ii) the
need to raise capital to meet business requirements, (iii)
significant fluctuations in marketing expenses, (iv) the ability to
achieve and expand significant levels of revenues, or recognize net
income, from the sale of our products and services, (v) the
Company's ability to conduct the business if there are changes in
laws, regulations, or government policies related to cannabis, (vi)
management's ability to attract and maintain qualified personnel
necessary for the development and commercialization of its planned
products, and (vii) other information that may be detailed from
time to time in the Company's Canadian securities regulatory
filings with sedar.com. The Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or
otherwise.