Discover Wellness Solutions Inc. (WLNS.CN)

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Discover Wellness Solutions Signs MOU and Quad Play to Enter Thailand’s Deregulating Hemp Extract Market

First step towards global distribution

 

  • Strategic partnership for entry into Thailand, the first country to deregulate the use of hemp-derived oils and extracts for consumer-packaged goods
  • Partnership serves as beachhead for DWS to gain access to the Asian hemp-infused market which is expected to grow to over $5.8 billion by 2024
  • DWS’ initial contribution secures toehold equity stake of 4% in Quad Play with option to acquire control of QP once regulations in Thailand allows for control by foreign companies
  • MOU is first step in development and marketing of consumer-packaged goods infused with hemp extracts for the Asian market, including wellness, food, beverage and cosmetics products

 

Calgary, AB – March 2, 2021 – Discover Wellness Solutions Inc. (CSE: WLNS) (formerly RMMI Corp.) (“Discover Wellness”, “DWS” or the “Company”), a licensed producer and processor under the Cannabis Act (Canada), is pleased to announce that it has entered into a Memorandum of Understanding on Co-operation on Arrangement of Hemp Business in Thailand with Quad Play (“QP”) of Thailand (the “MOU”). Thailand is an attractive market for Discover Wellness as it is the first country globally to deregulate hemp-derived oils and extracts which allows it to be included in consumer product goods. The MOU is the first step in DWS and QP creating a joint business for the development and marketing of consumer-packaged goods infused with hemp extracts for the Asian market, including wellness, food, beverage and cosmetics products.

 

Under the terms of the MOU QP would import high-potency hemp seeds from DWS for distribution and cultivation in Thailand. QP will become an exclusive supplier of DWS seeds in Thailand. The agreement is subject to an initial trial order of 20,000 seeds. Upon successful completion of the trial order, QP will pre-purchase 200,000 seeds (US$200,000 value) and in return DWS will receive a 4% equity interest in QP. Additionally, DWS has a Right of First Refusal (“ROFR”) to acquire control of QP once regulations in Thailand allows for control by foreign companies.

 

QP will arrange for cooperation with producers in Thailand of medicine, food and drinks products who wish to incorporate hemp oils and extracts in their products. By this arrangement, DWS can use Thailand as a base for distributing seeds, cultivating and producing DWS’s products for sales in Thailand domestically and internationally.

 

Effective, January 29, 2021, the Thai government amended its hemp regulations. Under its new definition hemp with <1% THC can now be imported, exported and used for government, industrial, medical and research purposes.

 

“We view this arrangement as a first step for Discover Wellness’ global distribution strategy into the fast-growing food and beverage markets of Asia, a potential $5.8 billion market by 2024 according to Prohibition Partners. We are excited to be working with QP as our exclusive partner and leverage their deep relationships with traditional consumer packaged goods companies within Thailand and the broader Asian market.” commented Peter Cheung, Interim Chief Executive Officer and Chief Financial Officer.

 

Key points from the MOU

 

The QP and DWS have the intention to co-operate and develop Hemp industry in Thailand to become the bio medical hub that produces a variety of hemp products, such as medical, food, beverages, and cosmetic products, for domestic and export to Regional Comprehensive Economic Partnership (“RCEP”) and global markets.

 

Cooperation Plan

 

(1)        QP to become the exclusive supplier of DWS seeds in Thailand.

 

(2)          The agreement will be subject to an initial order of 20,000 seeds.

 

(3)          QP to pre-purchase 200,0000 seeds (value of US$200,000) for 4,000 shares in QP that represents a 4% equity interest on a fully diluted basis in QP (“Equity Interest”). The Pre-Purchase and Equity Interest is subject to a successful Trial Order.

 

(4)          After the initial 200,000 seeds, QP to pay on a per seed basis and Discover Wellness has the option to convert those amounts into additional equity of QP to a maximum allowed under foreign ownership rules currently at 33%.

 

(5)          Discover Wellness shall have the ROFR to acquire control of QP once regulations in Thailand allows for control by foreign companies.

 

QP and DWS are working diligently on completing the detailed implementation plan to be in line with the timeframe agreed and prepare a Joint Venture Agreement. The Company will provide updates from time-to-time in due course.

 

Quad Play (Thailand) Co. Limited

 

Quad Play is a Thai registered company with several licensed entities in the cannabis and hemp ecosystem. Quad Play recently signed a Memorandum of Agreement with Walailak University. Quad Play’s wholly owned subsidiary Jai Sai currently has 2 licensed traditional Thai medical clinics with plans to roll out many more nationwide, they will form one of the main distribution channels for QP and DWS products. Quad Play will become a leader in developing genetics, cultivation, extraction technology, and production of bio medical products, for food, beverage, and health products for domestic market, and ultimately export to Regional Comprehensive Economic Partnership (RCEP) and global markets.

http://www.quadplay.co.th/en/Home/Index

 

Discover Wellness Solutions Inc.

 

Discover Wellness (formerly RMMI Corp.) is a Canadian company licensed, through its subsidiary, to cultivate, produce, process and sell cannabis in various forms. The Company’s vision is to enhance shareholder value by establishing cost leadership in hemp processing and CBD extraction coupled with a global distribution strategy.

 

More information about WLNS is available online at https://discoverwellness.solutions/

 

Contact Information:

 

Manish Grigo, Chief Strategy Officer

mgrigo@discoverwellnesssolutions.ca

416-569-3292

 

Peter Cheung, Interim Chief Executive Officer and Chief Financial Officer

ir@discoverwellnesssolutions.ca

Terry Uppal

+1-888-228-5128

 

Certain information set forth in this news release contains forward-looking statements or information (“forward-looking statements“). By their nature, forward-looking statements  are  subject  to  numerous  risks  and  uncertainties,  some  of  which  are  beyond  the  Company’s  control, including the impact of general economic conditions, industry conditions, volatility of commodity prices,  currency  fluctuations,  environmental  risks,  operational  risks,  competition  from  other  industry  participants, stock market volatility, and  the  ability  to  access  sufficient  capital  from  internal  and  external  sources.  Although the Company believes that the expectations in its forward-looking statements are reasonable, its forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate.  Those factors and assumptions are based upon currently available information.  Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. Risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our public disclosure documents available at www.sedar.com.  Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise.  The forward-looking   statements   contained   in   this   document   are   expressly   qualified   by   this   cautionary   statement. 

 

Trading in the securities of WLNS should be considered highly speculative.

 

SOURCE:  Discover Wellness Solutions Inc.

Discover Wellness Solutions Receives License to Sell Industrial Hemp Industrial Hemp License Creates Logistical Benefits

Calgary, AB — February 8, 2021 – Discover Wellness Solutions Inc. (CSE: WLNS) (formerly RMMI Corp.) (“Discover Wellness” or the “Company”), a licensed producer and processor under the Cannabis Act (Canada), is pleased to announce that it has received an industrial hemp license, effective until February 5, 2024, to sell industrial hemp.

 

Under the license, the Company can sell industrial hemp as grain, flowering heads, leaves or branches. Additionally, the Company can import or export seed and grain. The industrial hemp license is important to our distribution strategy because industrial hemp is a classification for cannabis plants with lower than 0.3% THC. The Company is focussed on a wellness strategy that is all about delivering the benefits of CBD (“cannabidiol”) without the psychoactive properties.

 

“The industrial hemp license is important to the Company’s distribution strategy as it dramatically reduces the regulatory overheads on industrial hemp flower, grain and seeds sales and fits in well with our cost leadership strategy,” commented Peter Cheung, Interim Chief Executive Officer and Chief Financial Officer.

 

Discover Wellness Solutions Inc.

 

Discover Wellness (formerly RMMI Corp.) is a Canadian company licensed, through its subsidiary, to cultivate, produce, process and sell cannabis in various forms. The Company’s vision is to enhance shareholder value by establishing cost leadership in hemp processing and CBD extraction coupled with a global distribution strategy.

 

More information about WLNS is available online at https://discoverwellness.solutions/.

 

Contact Information:

 

Manish Grigo, Chief Strategy Officer
mgrigo@discoverwellnesssolutions.ca
416-569-3292

 

Peter Cheung, Interim Chief Executive Officer and Chief Financial Officer
ir@discoverwellnesssolutions.ca

 

Terry Uppal, Investor Relations
+1-888-228-5128

 

Certain information set forth in this news release contains forward-looking statements or information (“forward-looking statements”). By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company’s control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, operational risks, competition from other industry participants, stock market volatility, and the ability to access sufficient capital from internal and external sources. Although the Company believes that the expectations in its forward-looking statements are reasonable, its forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. Risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our public disclosure documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

 

Trading in the securities of WLNS should be considered highly speculative.

 

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

 

SOURCE:  Discover Wellness Solutions Inc.

About Discover Wellness Solutions


Discover Wellness Solutions (WLNS:CSE) believes in approaching the production of marijuana and cannabis products uniquely. Our management team brings expertise in all areas of the operation – where traditional cannabis companies have growers, Discover Wellness Solutions has scientists; where traditional cannabis companies prioritize sales experience, Discover Wellness Solutions prioritizes strategists with strong business acumen and business development experience.

 

Fully Licensed:

 

In October 2019, Health Canada issued our wholly owned subsidiary a full license to cultivate, produce, process and sell cannabis in various forms under the Cannabis Act (Canada). Our vision is to build a low cost, highly efficient, hemp processing and CBD extraction business focused on serving a premier set of customers in Canada and abroad.

 

Blending Science with Nature

 

Discover Wellness Solutions processes hemp and extracts high quality, high consistency CBD from proprietary strains. It’s becoming a leading low cost, wholesale product provider to commercial cannabis businesses.

 

Discover Wellness Solutions (WLNS:CSE) operates an industrial-scale hemp processing facility in Alberta, Canada and is partnered with industry leading plant genetics firm SynerGenetics Biosciences.

 

SynerGenetics develops and cultivates proprietary hemp strains which contain higher-CBD, lower-THC content. These strains are more economic to process relative to other strains in the industry giving us an advantage over our peers. This partnership immediately positions WLNS as a low-cost, vertically-integrated cannabis company and as a potential leader in the industry

 

The WLNS Advantage:

 

LOW-COST, VERTICALLY INTEGRATED PLATFORM

 

With our SynerGenetics partnership locked-in, WLNS has full seed-to-sale capability and multi-million pound capacity. We are now focused on becoming the lowest cost producer of CBD concentrates and flower for a rapidly expanding global market.

 

PROPRIETARY GENETICS & EXCLUSIVE PREMIUM STRAINS

 

WLNS has exclusive rights to the current and future pipeline of SynerGenetics’ proven high-CBD hemp strains. These proprietary strains contain up to 15%+ CBD content and less than 0.3% THC – one of the highest ratios in the industry. Currently, there is a pipeline of over 20 new strains in development.

 

MAJOR GROWTH POTENTIAL

 

Our industrial-scale hemp processing and CBD extraction facility has a current footprint of 23,400 square feet in size and is expandable to over 100,000 square feet equivalent – 4-fold growth potential.

Low Cost, High Quality Producer

 

Discover Wellness Solutions (WLNS:CSE) is focused on becoming the lowest cost producer of high-quality, high consistency CBD concentrates.

 

Our industrial-scale CBD extraction and processing facility in Alberta, Canada is fully-licensed and highly-scalable for future expansion.

 

We have also partnered with leading plant genetics and cultivation firm SynerGenetics Biosciences. This partnership gives us exclusive rights to proprietary high-CBD, low-THC strains and has supplied us with 550,000 pounds of high-CBD hemp to date (with more to come).

 

SynerGenetics Bioscience Partnership

 

SynerGenetics Bioscience is a leading plant research and genetics firm focused on the development of high-CBD, low-THC hemp. The company has utilized cutting-edge technology to produce proprietary strains with 15%+ CBD content and less than 0.3% THC – one of the highest ratios in the industry and a key factor that will enable WLNS to produce high quality, high consistency CBD concentrate at lower costs than our competitors.

Disclaimer

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