Lifestyle Delivery Systems Announces Year to Date Revenues; Provides Update For Completion Of Canaccord Genuity Corp. Led Private Placement Financing
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Vancouver, British Columbia, Canada, May 15, 2017, Lifestyle Delivery Systems Inc. (CSE: LDS), (OTCQB: LDSYF) and (Frankfurt: LD6, WKN: A14XHT) (“LDS” or the “Company”) is pleased to announce that, year-to-date, the Company has generated US$564,000 in gross revenue through its consulting division. The consulting division provides advice and guidance to medical cannabis growers that includes, but is not limited to, facility structure and design, grow methods and equipment acquisition.
Separately but related, LDS expects that construction of the extraction and manufacturing wing of the joint use Adelanto Facility will be completed in late June 2017, with extraction related operations expected to commence in July 2017. It is expected that the extraction division will produce and sell three product lines: CannaStrips ™, vape cartridges and oils. It is anticipated that the construction of the cannabis cultivation wing of the Adelanto Facility will be completed in July 2017, with cultivation related operations expected to commence in September 2017.
Update on Canaccord Genuity Corp. Led Private Placement
The Company is scheduled to close the previously announced brokered private placement on or about May 23, 2017. The brokered private placement will be for up to 24,000,000 units (the “Units”) at a price of Cdn$0.50 per Unit for total gross proceeds of up to Cdn$12,000,000 (the “Offering”), led by Canaccord Genuity Corp. (the “Agent”). The Agent will have an over-allotment option for up to 15% of the Offering.
Brad Eckenweiler, CEO of LDS states, “Final documentation that has been executed as it relates to our operations and corporate structure during the due diligence period arguably has made us one of the most properly organized cannabis related entities in California. That, combined with the Canaccord Genuity arranged financing and completion of our facility, will most certainly put LDS in an advantageous position for the second half of 2017 and beyond.”
This news release does not constitute an offer to sell, or a solicitation of an offer to buy, nor shall there be any sale of any of the securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.
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 foray into being directly involved 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
FOR MORE INFORMATION, PLEASE CONTACT:
Skanderbeg Capital Advisors
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 including, but not limited to, the timing and completion of the Offering, the timing and completion of the build out of the Adelanto Facility, the timing and commencement of cultivation, extraction and manufacturing at the Adelanto Facility, the types of products to be produced and sold by the Company and the complexity and evolving nature of the legal and regulatory landscape for medical and recreational marijuana in the State of California. 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, completion of the Offering remains subject to the satisfaction of certain conditions. Completion of the Adelanto Facility may be subject to uncertainties including the availability of trades people and obtaining the necessary occupancy permits, which may be outside of the Company’s control. The Company does not have a history of earning revenues from the sale of products or the growing of cannabis products, and there is no assurance of future revenues. In addition, 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.