Radient Technologies Inc. (RTI: CA) has provided an update on the corporation's collaboration arrangement with Aurora Cannabis Inc.
On June 5th, 2017, the Corporation and Aurora Cannabis Inc. ("Aurora"), (TSX VENTURE:ACB)(OTCQX:ACBFF)(FRANKFURT:21P)(WKN:A1C4WM)announced the results of their Joint Venture Research Activity ("JV"), with positive outcomes in terms of extraction efficiency, extract purity, conservation of extract profiles, and anticipated high throughput levels compared to current industry benchmarks.
With the final phase of the research phase having been successfully completed and the results verified by an independent third party, Aurora has confirmed its interest in continuing its collaboration with Radient. Consequently, Radient and Aurora are currently negotiating the terms of a definitive agreement for the exclusive use by Aurora of Radient's proprietary MAP(TM) technology. The purpose of the agreement is to formalize the development and commercialization of standardized cannabis extracts for both the Canadian and export markets.
Additionally, Radient announces a proposed shares-for-debt transaction in which Radient would issue up to 9,424,330 common shares, at a price of $0.66 per share, to an arm's length third party creditor of the Company, AVAC Ltd. ("AVAC") in connection with the settlement an aggregate of $6,210,633 of debt (inclusive of interest). AVAC had previously advanced Radient $4,685,000 in exchange for a royalty on Radient's future revenue. The settlement will result in the termination of AVAC's entitlement to any future royalty payments by Radient to AVAC. Further details of the original agreements can be found in Radient's most recent financial statements filed on SEDAR.
AVAC Ltd. is a Canadian venture investor with over 20 years of direct investing in early stage agriculture and technology ventures. AVAC also manages an early-stage venture capital fund-of-funds investment pool and the Accelerate Fund I, an angel co-investment fund.
"We are extremely pleased that AVAC has agreed to convert its position from being a creditor to a shareholder of the Company," said Denis Taschuk, CEO. "AVAC has been an important partner for Radient over the years, as we matured from pure technology development to a company with what we believe is a strong commercial value proposition. We believe that this conversion by AVAC from creditor to shareholder is a further validation of our progress, and a recognition of, and alignment with, long-term shareholder value creation. This transaction also strengthens our balance sheet as we gear up towards commercialization of our technology in the cannabis sector."
The Proposed Transaction will be completed pursuant to a definitive agreement with AVAC, and is conditional on TSX Venture Exchange approval. All securities to be issued pursuant to this settlement will be subject to a 4-month hold period.
Radient extracts natural compounds from a range of biological materials using its proprietary "MAP (TM)" natural product extraction technology platform which provides superior customer outcomes in terms of ingredient purity, yield, and cost. From its initial 20,000 square foot manufacturing plant in Edmonton, Alberta, Radient serves market leaders in industries that include pharmaceutical, food, beverage, natural health, and personal care markets. Visit www.radientinc.com for more information.