PETACH-TIKVA, Israel, January 11, 2016 /PRNewswire/ --
OWC Pharmaceutical Research Corp. (OTC: OWCP), an Israel-based pharmaceutical research company dedicated to the development of cannabinoid treatments, products and delivery technologies, today announced that it has entered into a $750,000 equity purchase agreement ("Agreement") with Kodiak Capital Group, LLC ("Kodiak").
Under the terms of the Agreement, OWC Pharmaceutical Research Corp ("OWC" or the "Company") has the right to sell Kodiak $750,000 of OWC's common stock. Kodiak cannot require OWC to sell shares to Kodiak, but is obligated to make purchases as requested by OWC. Proceeds from the financing will be utilized by OWC to further develop the Company's proprietary cannabis-centric products and for working capital.
Mordechai Bignitz, OWC Pharmaceutical Research's chairman, commented on the announcement, "We are very excited to receive our first direct investment from an institution, especially one as respected as Kodiak Capital Group. This proves to us at OWC that we are on the right track with our vision for clinical research by Institutional Review Board-approved trials, which is the prime message for the future of the Medical Cannabis market."
Mr. Bignitz went on to say, "There are a number of companies working on cannabinoid-based therapies, but OWC Pharmaceutical Research is one of only a few that are conducting trials in accordance with IRB. We believe that this strategy not only provides OWC with a distinct competitive advantage, but that it will also demonstrate that cannabis therapies can be just as effective, if not more effective, than industrial pharmaceuticals. We have been working vigorously to complete the delivery methodology and safety protocol for our multiple myeloma cannabis-based formulation so that we can begin clinical trials for efficacy. This funding from Kodiak will facilitate that effort," commented Mordechai Bignitz, OWC Pharmaceutical Research's chairman.
Jim Fitzpatrick, a member of Kodiak's Advisory Committee, stated, "Kodiak is excited to partner with the OWC Pharmaceutical Research's team by providing funding for the development of cannabis-based therapeutic products, devices and treatments. Kodiak is hyper-focused on broadening our investment portfolio of companies in the emerging cannabis industry and is deploying our institutional capital in situations we believe offer true opportunities; we are impressed with the OWC's professionalism and results to date."
Additional details regarding the Agreement are included in a current report on Form 8-K filed by OWC with the Securities and Exchange Commission on December 23, 2015.
About OWC Pharmaceutical Research Corp.
OWC Pharmaceutical Research Corp., through its wholly-owned Israeli subsidiary, conducts medical research and clinical trials, in full compliance with all international regulatory protocols, for the development of pharmacy-grade cannabis-based products, treatments and delivery systems. For more information, please visit http://www.owcpharma.com .
About Kodiak Capital Group, LLC
Kodiak is an institutional investor headquartered in Newport Beach, California. Kodiak provides equity and debt funding to public and private companies. Kodiak's funding provides long-term strategic capital, providing companies with certainty, flexibility and consistency. Kodiak's investments are in a wide range of industries emphasizing alternative energy, consumer products, life sciences, natural resources, and social media technology. For more information, visit http://www.kodiakfunds.com.
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933, as amended 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, filing patent applications, product development, and business strategy. 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. 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 OWC Pharmaceutical Research Corp. (OTCQB: OWCP) periodic reports filed from time-to-time with the Securities and Exchange Commission.
OWC Pharmaceutical Research Corp. Contacts
Ziv Turner, Chief Executive Officer
In the United States:
SOURCE OWC Pharmaceutical Research Corp.