TORONTO, ON--(Marketwired - Apr 19, 2017) - ALGAE DYNAMICS CORP (OTCQB: ADYNF) (the "Company" or "ADC"), a company focused on the development of unique health products and pharmaceuticals utilizing cannabis, hemp and algae oils today announced a joint venture with ARA - Avanti Rx Analytics Inc. ("ARA") in a newly-formed subsidiary entity called ADC Biomedical Corp ("BIO"), the equity of which will be owned 4% and 96% by ARA and ADC, respectively. Previously, the Company had announced a memorandum of understanding with ARA with respect to strategic collaboration between the two companies. This announcement is an extension of that previously-announced collaboration.
It is the intention of the joint venture for BIO to be the preferred purchaser from ARA of all BIO's and ADC's products containing algae, hemp oil, and cannabis extracted oils, and/or their compounds. ADC will be responsible for the provision of raw materials, or if required by law, will arrange for the provision of raw materials to ARA for processing. ARA will be responsible for processing the raw materials into finished bulk goods and/or packaged products, and shipping same to BIO's licensed clients/sellers and research organizations. ARA will process materials according to agreed prices and specifications, which may be modified from time to time. The initial term of the joint venture is for three (3) years, effective April 10, 2017, renewing automatically unless notice is given from one party to the other to terminate. In addition, the joint venture may be terminated upon the occurrence of a material breach that remains uncured for 60 days.
Paul Ramsay, Chairman and President of the Company, said, "This joint venture positions the Company with the necessary channels to manufacture and sell BIO's and ADC's bulk and packaged products for sale, both domestically and export, as well as supply materials to support our research programs at University of Waterloo and Western University. ARA - Avanti Rx Analytics is the first and only independent Health Canada GMP and OCDS approved Contract Organization in the field of controlled drugs and substances particularly in the areas of medical marijuana, hemp, cannabinoids and marijuana-based concentrated products, which makes ARA an outstanding partner in our future endeavors."
As reported earlier, the Company is continuing to seek opportunities to partner with or take ownership in existing Access to Cannabis for Medical Purposes Regulations (ACMPR) licensed producers to allow for access to the marketplace.
About ARA - Avanti Rx Analytics
ARA - Avanti Rx Analytics is the first Health Canada GMP and OCDS approved Contract Organization specializing in the field of controlled drugs and substances particularly in the areas of medicinal cannabis, hemp, cannabinoids, and cannabis based concentrated products. ARA - Avanti Rx Analytics offers a comprehensive menu of services ranging from analytical R&D and QC testing, cannabis extraction under controlled environment, cannabinoids purification, cannabis infused-product formulation, and cannabis waste management by means of material denaturation, as well as the QA and regulatory consulting. ARA - Avanti Rx Analytics, as a Health Canada, GMP approved and OCS licensed organization, does not grow, distribute, nor sell/commercialize cannabis. ARA focus is in the provision of a broad range of sophisticated, state-of-the-art services to Health Canada approved licensed producers (LPs), authorized dealers including; pharmacies, medical practitioners, government enforcement and regulatory agencies, and regulatory approved allied cannabis communities, and to continue to remain at the forefront of the healthcare industry, building an enviable reputation.
About Algae Dynamics Corp
ADC is engaged in the development of unique health products and pharmaceuticals that utilize hemp, cannabis and algae oils. This is an extension of our plan to commercialize our proprietary BioSilo® algae cultivation system for the high volume, low cost production of pure contaminant-free algae biomass which is high in Omega-3 fatty acids. We have engaged two Canadian universities to provide research into the use of extracts from cannabis oil, which we plan to use to develop products that combine the significant health benefits of Omega-3s derived from algae oil and extracts from cannabis oil. Our research is focusing on the use of cannabis oil in the context of cancer, and the use of cannabis derivatives for the development of novel pharmacotherapies for mental health.
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking statements" as that term is defined in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, use of proceeds and the development, costs and results of current or future actions and opportunities in the sector. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies, our ability to raise the additional funding we will need to continue to pursue our exploration and development program, and our ability to retain important members of our management team and attract other qualified personnel. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.