Phoenix, Arizona and Vancouver, British Columbia--(Newsfile Corp. - November 30, 2023) - YourWay Cannabis Brands Inc. (CSE: YOUR) (OTC: YOURF) ("YourWay" or the "Company") is pleased to announce, further to its press release dated November 15, 2023 titled "YourWay Cannabis Brands Announces Management Update and Offer to Purchase Labtronix", that the definitive agreement (the "Agreement") to sell (the "Transaction") Labtronix, Inc. ("Labtronix") has been entered into. The closing of the Transaction is subject to customary conditions precedent, including receipt by the Company of a special resolution of the Company's common shares and proportionate voting shares approving the Transaction (the "Transaction Resolution"), which approval will be sought at the Company's upcoming special meeting (the "Meeting") of the shareholders to be held on December 28, 2023.
Under the terms of the Agreement, YourWay has agreed to sell a 100% ownership interest in Labtronix, which sale will effectively allow the Company to separate itself from:
- all lawsuits both existing and unknown against Labtronix;
- all existing liabilities of Labtronix both known and unknown; and
- all tax liabilities pertaining to Labtronix (where essential all operations of the Company have been conducted).
As consideration for the sale, YourWay will receive US$3M. The $3M will be structured as a 5% secured note with a US$300,000 payment due on closing and the balance paid in equal installments of principal and interest over the following 60 months.
For further detail respecting the Agreement, the Transaction, the Transaction Resolution and Company's rationale for pursuing the Transaction, please see the Company's management information circular for the Meeting and the full text of the Agreement, which are both filed on the Company's profile at www.sedarplus.ca.
About YourWay Cannabis Brands Inc.
YourWay was committed to redefining the way consumers and cannabis brands interact with the consumer. By building their own brands, partnering with others, they were dedicated to expanding their reach; remolding the cannabis industry and ultimately redefining how consumers and cannabis brands interact.
Website: www.yourwaycannabis.com
contact: ir@yourwaycannabis.com
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release may include "forward-looking information" as defined under applicable Canadian securities legislation, including statements regarding the plans, intentions, beliefs, and current expectations of the Company with respect to future business activities and operating performance, the Transaction and shareholder approval in respect of the Transaction. Forward-looking information is 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 information.
The Company, through its subsidiaries, is involved in the manufacture, possession, use, sale, and distribution of cannabis in the United States. Local state laws where the Company operates permit such activities; however, investors should note there are significant legal restrictions and regulations that govern the cannabis industry in the United States. Cannabis remains illegal under federal law in the United States to cultivate, distribute or possess cannabis. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities may form the basis for prosecution under applicable federal money laundering legislation. The enforcement of federal laws in the United States is a significant risk to the business of the Company and any proceedings brought against the Company thereunder may adversely affect the Company's operations and financial performance.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/189421
