BETHESDA, Maryland, October 9, 2015 /PRNewswire/ --
Cannabics Pharmaceuticals Inc. (OTCQB: CNBX) has announced its execution of an Intellectual Property & Subsidiary Assignment and an Assignment & Assumption of Debt & Liabilities Agreement with Cannabics, Inc. a Delaware Corporation, related party, and a majority holder of 88% of the company.
These agreements were executed as part of an internal restructuring of the Company, whereby the Research and Development components shall now be separate from the company's continuing business operations.
Per the Agreements, Cannabics, Inc. has assumed $362,000 of the company debts and liabilities in return for Assignment of a provisional patent related to High Throughput Screening and the company subsidiary "Grin Ultra, Ltd.".
"After much consultation, the management believes that by eradicating the significant current debts and liabilities from the company associated with the research, this new division of labor in the corporate structure will better enable the company to focus its energies on the world-wide licensing of the company's main technology, the Cannabics SR capsules," said Itamar Borochov, the company CEO.
"The public seems to be roundly enthusiastic of our technology, However this has not translated efficiently into direct equity investments in the open market. We have seen a drop in market value over the past half year, in spite of a positive media coverage, International press, TV and published interviews. The core problem has been that the research and clinical studies necessary to validate the science are disproportionately and prohibitively expensive relative to the normative operations of a public company with no revenues as of yet."
We believe that this internal restructuring, along with contemplated revenues, which are expected in the first half of FY 2016, positions the company in a much stronger financial condition, making the company more attractive to active investments.
The company is about to expand the current licensing and agreements already in place in Colorado to other states in the United States, as well as pursuing several licensing opportunities in Europe, South America, and Australia.
The company also appreciates the very positive feedback from our Shareholders thus far and looks forward to our renewed focus on our operative business as we enter into the fourth quarter of the year.
Certain statements contained in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to statements identified by words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," "projects" and similar expressions. The statements in this release are based upon the current beliefs and expectations of our company's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Numerous factors could cause or contribute to such differences, including, but not limited to, results of clinical trials and/or other studies, the challenges inherent in new product development initiatives, the effect of any competitive products, our ability to license and protect our intellectual property, our ability to raise additional capital in the future that is necessary to maintain our business, changes in government policy and/or regulation, potential litigation by or against us, any governmental review of our products or practices, as well as other risks discussed from time to time in our filings with the Securities and Exchange Commission, including, without limitation, our latest 10-Q Report filed on July 15th, 2015. We undertake no duty to update any forward-looking statement or any information contained in this press release or in other public disclosures at any time.
SOURCE Cannabics Pharmaceuticals Inc.