Ignite International Brands Signs Binding Letter of Intent to Acquire Cannabis Extraction Company, Gen X Biosciences Corp.

Published: January 21, 2019

Ignite International Brands Signs Binding Letter of Intent to Acquire Cannabis Extraction Company, Gen X Biosciences Corp.

Ignite International Brands, Ltd. has entered into a binding letter of intent which, subject to customary closing conditions, will allow Ignite to acquire all of the issued and outstanding common shares in Gen X BioSciences Corp., a leading cannabis extraction company.

Gen X was built on its scientific approach to extracting cannabis products and uses its proprietary ‘Molecular Perfection’ system to distil cannabis oil several times until the final product has THC potency of over 90%. The scalability of Gen X’s technology allows it to sustain adaptable production capacity. Gen X leverages a team with extensive experience in cannabis. Shea Alderete, the Chief Executive Officer, Chief Scientific Officer, and Co-Founder of Gen X, has over 15 years of experience in creating high-quality products, and learned his trade with some of the first premium cannabis brands such as Moxie – the first company in California to receive a temporary license in the now-legal cannabis market. Shea has won several awards for the quality of his products, including the Chalice Cup of California and the Karma Cup of Canada.

Under the terms of the Binding LOI, it is proposed that Gen X shareholders will receive .0681 of an Ignite common share per Gen X share based on a value of $5.00 per Ignite share. As a result, 8,500,000 Ignite common shares would be issued which, following the closing of the transaction, would represent approximately 29.1% of the issued and outstanding Ignite shares. No current shareholder of Gen X would hold 10% or more of the outstanding Ignite shares.

If the transaction is closed, Gen X will become a wholly-owned subsidiary of Ignite and operate independently and exclusively in the United States. It is anticipated that Gen X will manufacture a variety of cannabis related products for Ignite International, Ltd. (“Ignite US”), another investee company of Ignite. It is also expected that Gen X will continue to service the manufacturing requirements for select independent customers.

“From the first time I met the Gen X team, and sampled their products, I knew they were makers of premium, high quality products aligned with the standards we set for Ignite. Gen X produces a consistent, high quality, natural cannabis derived terpene oil, that is a reliable, safe product.” said Ignite CEO and Chairman, Dan Bilzerian.

“Ignite US’ products have a reputation for selling quality above all else. From the first moment I met Dan Bilzerian and his strong cannabis team in Las Vegas, I knew I wanted to be a part of this exciting company and join forces with a leading cannabis entrepreneur such as Dan.” said Shea Alderete, the Chief Executive Officer, Chief Scientific Officer, and Co-Founder of Gen X.

It is expected that the transaction will close by March 2019.