TORONTO, Nov. 15, 2017 /PRNewswire/ - Alternate Health Corp ("Alternate Health" or the "Company") (CSE:AHG) (OTC:AHGIF), an international, vertically-integrated medical cannabis company, today announced the acquisition a new Mobile Payment Processing Application, acting as turnkey payment solution and point-of-sale technology with comprehensive Blockchain reporting.
"This acquisition is the final piece needed to fully integrate Alternate Health's cannabis-specific Electronic Medical Records (EMR) and Transaction Management software with Blockchain technology," says Dr. Michael Murphy, CEO of Alternate Health. "Our complete software suite will ensure full regulatory compliance, empowering governments with detailed financial, tax and transaction reporting and uniquely addressing the demands of the legal cannabis industry."
The regulated cannabis industry is projected to reach $30 billion USD in the United States by 2021 and up to $22.6 billion CAD in Canada according to respective reports in Forbes and Maclean's magazines1. With such rapid growth, there are numerous opportunities for technologies that ensure safety, security and transparency. Alternate Health expects to capture of a meaningful percentage of this market by offering governments the tools to track end-to-end transactions in regulated cannabis markets.
"Alternate Health's software creates a fixed engine to empower local, state and national governments to monitor end-to-end transactions and collect the exact and appropriate remuneration," says Dr. Murphy. "The new payment solutions and point-of-sale technology bolsters Alternate Health's intellectual property assets and opens up greater revenue generating capabilities for the Company's patented EMR and transaction management software."
The Mobile Payment Processing Application creates a complete end-to-end software suite for regulated cannabis businesses, based on Alternate Health's CanaPass and FlorPass software. The software will be available in not only medical cannabis markets, but also recreational cannabis legalized markets, including jurisdictions with state-level legalization, such as Washington and Colorado, and when legalized, countries with national-level legalization, such as is anticipated in Canada by July 2018.
Terms of Agreement with Trident Payments, LLC
Under the terms of the agreement, Trident Payments will assign all intellectual property rights to the Mobile Payment Processing Application to Alternate Health, including source code, algorithms, databases, software, etc. The Mobile Payment Processing Application is a fully functioning mobile application available for download on both the IOS and Android platforms and will be used to accept payments made by its customers for cannabis-related products and services. The Mobile Payment Processing Application includes a cascading feature that will facilitate the processing of credit card transactions so that if a transaction should fail it is rerouted over and over until it has been sent to all the banks available for use.
Trident Payments will receive a total of 300,000 common shares at a deemed price of $2.45 CAD per share. Upon execution of the agreement, Trident will receive the first 100,000 shares, with the balance of the 200,000 shares vested as to 50,000 shares on the first trading day of each of the next four fiscal quarters in 2018. Trident Solutions, LLC, an affiliate of Trident Payments, will also receive 24,000 common shares under a Marketing and Management agreement to integrate the technology into CanaPass and continue to make updates and improvements as necessary.
This agreement includes an aggregate $34,000 USD independent contractor fee paid monthly and automatically renewable for12 months. Alternate Health has also agreed to pay Trident Solutions, on a quarterly basis, a percentage of the net income received by Alternate Health in connection with certain payment processing transactions. All common shares will be issued in accordance with the Policies of the CSE and regulatory authorities, and be subject to a 4 month hold period under applicable Canadian securities laws.
Consulting Agreements – Issuance of Common Shares and Warrants
The Company also announces that it has entered into two agreements (the 'Agreements') with certain consultants of the Company for providing fundraising and market awareness services. Pursuant to the terms of the Agreements, for past services rendered, the Company will grant 50,000 warrants to purchase the Company's shares at a price of CAD$2.45 per common share for a period of twenty-four (24) months from the date of issuance. The effective date of the grant is November 9, 2017. The Company will also issue 5,000 common shares at a deemed price of CAD$2.45, for past services rendered. In addition, the Company entered an agreement for multiple technology/consulting services in return for the issue of 185,000 common shares at a deemed price of CAD$ 2.45. The shares vest as to 46,250 on the first trading day of the next four fiscal quarters in 2018. The common shares and warrants granted will be in accordance with the Policies of the CSE and regulatory authorities, and be subject to a 4-month hold period under applicable Canadian securities laws.
About Alternate Health Corp.
Alternate Health Corp. (CSE: AHG, OTCQB: AHGIF) Alternate Health has established multiple arms-length operations within the medical cannabis industry, each of which drives consumers, data and strategic opportunities to the company's other verticals. This sophisticated cross-integration of the company's enterprises has positioned Alternate Health as one of the only cannabis companies that delivers consistent revenue and intellectual property without growing, manufacturing or distributing the cannabis plant.
Through its software solutions, data analytics, and patented delivery systems, Alternate Health's goal is to be the global authority on scientific and clinical support for cannabis in regulated markets. Alternate Health is well positioned to reinvest internal operating cash flow in its platform over the long term, creating an attractive investment profile for its shareholders.
Alternate Health resides in the cannabis sector along with companies like GW Pharmaceuticals (OTCMKTS:GWPRF), AXIM Biotechnologies Inc. (OTCMKTS:AXIM), Canopy Growth Corporation (TSE:WEED), and Aphria Inc. (TSE:APH). Alternate Health is differentiated from other cannabis companies by its focus on ancillary services for patients, healthcare professionals and regulatory providers rather than selling a commodity. For more information about Alternate Health Corp., visit www.alternatehealth.ca.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release. Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as "forward-looking statements". Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company's future operations, business prospects and financing plans, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward looking statements.
1 Source: Forbes.com, "The marijuana industry is getting supersized" May 8, 2017; Macleans.ca, "How big is Canada's marijuana market, really?" June 30, 2017.
SOURCE Alternate Health Corp.