PENTICTON, BC / ACCESSWIRE / March 23, 2022 / EastWest Bioscience Inc. ("EastWest" or "Company") (TSXV:EAST), reports that, pursuant to the Board of Directors Ancillary Compensation Agreement (the "Compensation Agreement") and subject to regulatory/Exchange approval, it will compensate Directors and Officers ("Officers") of the Company for personally guaranteeing loan funds incurred by the Company. The Officers of the Company, from time to time, are required to provide personal guarantees in the form of financial security and backstopping for the Company, its subsidiaries, and affiliates ("Personal Guarantees"). The Company acknowledges that the Personal Guarantees present financial risk to such management persons and wish to compensate the Officers for providing such Personal Guarantees.
As part of and subject to the terms and conditions of the Board of Directors Ancillary Compensation Agreement (the "Compensation Agreement"), the Company agrees to pay to the Officers a cash fee of 1.5% of the total value of the loan guarantee to be paid concurrently up to the execution of any Personal Guarantee provided. The Company anticipates that it may borrow up to CAD $2,000,000 for which personal guarantees may be required. These loans would include credit cards, mortgages or any Government backed loans.
About the EastWest Bioscience Group of companies
EastWest Bioscience is a vertically integrated wellness company with a multitude of business units and assets that allow for seed-to-sale supply chain management. We source our raw material, process, manufacture, test, brand, market, and distribute our products to our customers in Canada, the United States, and beyond. The Company owns and operates retail and manufacturing subsidiaries.
The Company's retail subsidiary is the award winning, Canadian natural health retail franchise - Sangster's Health Centres - with over 40 years of legacy in the health and wellness industry. Sangster's goal is to provide natural choices through quality products and educated advice for a healthy lifestyle. Sangster's Health Centres occupies a unique position in the industry, the stores provide vast knowledge and safe natural remedies for the prevention and treatment of disease and ailments. Sangster's introduction and development of over 202 exclusively labeled products (vitamins, mineral, herbs, proteins, natural body care and organic foods) catapulted Sangster's name and product into a large number of Canadian households. From a solid base in Saskatchewan, Sangster's has become a national brand name with franchise stores located across Canada.
Orchard Vale Naturals is the Company's manufacturing arm that is certified with a Health Canada Site License and has GMP Certified NHP Manufacturing capabilities. Orchard Vale Naturals specializes in custom blends and production runs of all sizes, small to large, for top-quality products with quick turnaround times. Orchard Vale Naturals operates out of a 34,000 sq. ft. Health Canada licensed facility in Penticton, British Columbia owned by EastWest Bioscience, which acts as the Head Office for all of EastWest's Canadian operations.
The Company's subsidiary 1290185 B.C. LTD dba Spare Room Co Self Storage ("Spare Room") is building a network of automated self-storage sites in British Columbia. The subsidiary's business model is designed to be low capex with highly scalable logistics. It is focused on secondary markets, consumer automation and innovative land partnerships, allowing it to move into new regions quickly, at scale and with minimal risk. EastWest hopes to build Spare Room into a household name across Canada.
ON BEHALF OF THE BOARD OF DIRECTORS OF EASTWEST BIOSCIENCE INC.
"Rodney Gelineau"
Co-Founder, Chief Executive Officer and Director
For Further Information:
Company Website: www.eastwestbioscience.com
Contact: Rodney Gelineau on 1-800-409-1930 or investors@eastwestscience.com
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.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the matters disclosed herein. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; and delay or failure to receive board, shareholder or regulatory approvals. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE: EastWest Bioscience Inc.
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