Lifestyle Delivery Systems Inc. Adopts Advance Notice Policy, Extends Financial Milestone Provisions of Canna Delivery Systems Escrow Agreements
Vancouver, British Columbia, Canada, November 7, 2017, Lifestyle Delivery Systems Inc. (CSE: LDS), (OTCQB: LDSYF) and (Frankfurt: LD6, WKN: A14XHT) (“LDS” or the “Company”) announced today that its Board of Directors has approved amendments to the Company’s articles to adopt an advance notice policy for the election of directors (the “Advance Notice Policy”).
The Advance Notice Policy is intended to facilitate an orderly and efficient annual and/or special meeting process and ensure that all shareholders receive adequate notice and information about director nominees.
The Advance Notice Policy fixes a deadline by which holders of record of the Company’s common shares must submit director nominations to the Company prior to any annual or special meeting of shareholders, and sets out the information that a shareholder must include in such notice to the Company. In the case of an annual meeting of shareholders, notice to the Company must be made not less than 30 days nor more than 65 days prior to the date of the annual meeting, unless the annual meeting is to be held less than 40 days after the meeting was first announced, in which case notice may be made no later than the close of business on the 10th day after the announcement.
The Advance Notice Policy was adopted effective as of November 3, 2017 and is now in full force and effect. The Company intends to seek shareholder ratification of the Advance Notice Policy at the Company’s next annual general meeting. If the Advance Notice Policy is confirmed or confirmed as amended at the meeting, the Advance Notice Policy will continue in effect in the form in which it is so confirmed.
Extension of Financial Milestones for Escrow Agreements
In addition, on November 3, 2017, the Company’s Board of Directors resolved to extend the deadline for satisfying certain financial milestones set out under the terms of its escrow agreements with the former shareholders of Canna Delivery Systems Inc. (“Canna”). Under the terms of the escrow agreements, a total of 7,800,000 common shares issued to the former shareholders of Canna (the “Performance Shares”) were held in escrow, subject to release upon the Company achieving certain financial milestones within 30 months after the acquisition of Canna (as amended on April 30, 2017). The Company has agreed to extend the deadline for satisfying the financial milestones until December 31, 2017. As of the date of this news release, a total of 2,100,000 Performance Shares remain subject to escrow, of which 840,000 Performance Shares are held by the Company’s CEO, Brad Eckenweiler.
About Lifestyle Delivery Systems Inc.
The Company’s technology produces infused strips (similar to breath strips) that are not only a safer, healthier option to smoking, but also a new way to accurately meter the dosage and assure the purity of the product. In addition, with the entering into its management services agreements with NHMC, Inc. and CSPA Group, Inc., the Company has begun its direct involvement in the growing of medicinal ingredients for, and the manufacturing of, its products. From seed to sale, the Company’s products and ingredients will be tested for quality and composition throughout the formulation and production processes, resulting in a delivery system that is safe, consistent and effective.
On behalf of the board of directors of Lifestyle Delivery Systems Inc.
Brad Eckenweiler, CEO & Director
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Cautionary Disclaimer Statement:
The Canadian Securities Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management’s current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. The Company cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company’s control. Such factors include, among other things: risks and uncertainties relating to the Company’s limited operating history and the need to comply with environmental and governmental regulations. In particular, there is significant regulatory uncertainty with respect to the production and sale of medicinal and recreational marijuana in the United States of America. In particular, marijuana remains a Schedule I drug under the United States Controlled Substances Act of 1970. Although Congress has prohibited the US Justice Department from spending federal funds to interfere with the implementation of state medical marijuana laws, this prohibition must be renewed each year to remain in effect. In addition, although the State of California has adopted laws permitting the commercial cultivation, extraction and manufacturing of medicinal marijuana, final regulations with respect to the implementation of these laws have yet to be adopted. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.