Alternate Health Secures Second Set of Licenses for Cannabis Manufacturing and Distribution in Los Angeles
TORONTO, Jan. 18, 2019 /PRNewswire/ - Alternate Health Corp., ("Alternate Health" or the "Company") (CSE:AHG) (OTCQB:AHGIF), an international leader in technology solutions for the regulated cannabis industry, announced today that that Company has secured state licenses for the manufacturing and distribution of cannabis at its facility in Los Angeles, California in addition to its licenses in Humboldt County, California.
"This is a tremendously exciting accomplishment for Alternate Health and solidifies our position in California's highly lucrative commercial cannabis market," says Howard Mann, CEO of Alternate Health. "Los Angeles is one of the most valuable markets in the cannabis industry and our facility is ideally located to manufacture and distribute top-quality cannabis products."
Kare MMJ, which was acquired by Alternate Health in a deal announced on November 20, 2018, was recently approved by the state of California for its cannabis manufacturing and distribution licenses. The newly issued licenses allow Alternate Health to begin operations at its 5,000 square foot Los Angeles location. The Company will initially be manufacturing and distributing a line of flavoured cannabis extract products through its premiere Bionic Bee brand.
Alternate Health's Los Angeles licenses were secured in addition to the licenses for its facility in Humboldt County, California, on October 20, 2018, which will continue to operate as the primary location for the production and distribution of cannabis flower and infused edibles.
The Company has also made several operational updates and continues to progress with its strategic plan in the California cannabis market
As announced on December 10, 2018, Alternate Health closed a non-brokered private placement of 12,739,000 common shares for aggregate gross proceeds of CAD$5,095,000. Proceeds of the private placement are already being used to expand the Company's cannabis technology platform in addition to key product development and implementation of distribution activities in California.
Debt Finance Agreement
Alternate Health continues to work with Agincourt Ventures to secure $20 million as part of the debt finance agreement announced on November 8, 2018. The Company originally expected to receive funds in two tranches on November 30, 2018 and December 20, 2018 with a funding deadline of January 15, 2019 as specified in a binding letter of intent. Alternate Health agreed to extend the deadline 14 days to January 29, 2019 as the result of an unexpected delay encountered by Agincourt Ventures during the process of converting investment assets to cash to be used to fund the agreement.
"I am extremely pleased with the progress we have made in the short time since securing our commercial cannabis licenses in Humboldt County," says Howard Mann. "Adding the Los Angeles licenses to our portfolio is an extraordinary accomplishment for the Company and our shareholders. We will continue building on the success of our highly advanced technology platforms while expanding operations in the regulated cannabis industry and driving revenue."
About Alternate Health
Alternate Health (CSE: AHG, OTCQB: AHGIF) is an international cannabis company, focusing on technology and value-added services. Alternate Health's industry-leading software systems provide the platform for the company's diverse operations, including distribution and the first medial cannabis software portal approved by the Florida Department of Health.
Alternate Health's corporate office is located in Toronto, Canada, with additional offices in Venice and Humboldt County, California and San Antonio, Texas. The Company is well positioned to reinvest internal operating cash flow in its platform and product development over the long term, creating an attractive investment profile for its shareholders. Alternate Health resides in the cannabis sector along with companies like GW Pharmaceuticals, AXIM Biotechnologies Inc., and Canopy Growth Corporation. For more information about Alternate Health Corp., visit www.alternatehealth.ca.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release. Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as "forward-looking statements". Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company's future operations, business prospects, anticipated growth and potential revenues, derived from the Bionic Bee asset purchase are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.