VANCOUVER, British Columbia, April 12, 2019 /PRNewswire/ -- Lifestyle Delivery Systems Inc. (CSE: LDS), (OTCQX: LDSYF), (Frankfurt: LD6, WKN: A14XHT) ("LDS" or the "Company") announces its wholly-owned subsidiary, CSPA Group, Inc. ("CSPA"), entered into a Memorandum of Understanding (the "MOU") with MBioTeQ, LLC ("MBioTeQ") to supply a minimum of 120 liters of raw distillate per month.
Pursuant to the MOU, CSPA Group, Inc. will provide MBioTeQ with a minimum 120 liters of 85% THC raw distillate oil per month. CSPA Group will be responsible for securing the biomass, testing the distillate throughout the manufacturing process until it is ready for pick up by MBioTeQ. The price per liter may vary in the event of fluctuations in California's biomass inventory and prices of raw material increase. This structure permits profitability in an uncertain market.
Casey Fenwick, President of LDS, stated, "This is a great starting point for CSPA and MBioTeQ. We have already started procuring biomass for this contract and, once we have established a steady supply chain, it may pave the way for several other projects CSPA can work on with MBioTeQ."
The Company's CEO, Brad Eckenweiler, stated, "CSPA Group has been stockpiling both distillate and full spectrum cannabinoid oils for the production of CannaStrips™, and we have now enough warehoused distillate and oils to meet the anticipated demand for all versions of the CannaStrips™ for the next several months. With plenty of raw products in our warehouse, we are happy to take on additional third party distillate production and sales."
The Company will continue to inform the market of corporate developments as they become available.
About CSPA Group Inc.
CSPA Group, Inc. is located in Adelanto, California and is a City-permitted and State-Licensed manufacturer and distributor/transporter in the California cannabis industry. Manufacturing extracted oils and distillates, and producing CannaStrips™ under a license agreement with Lifestyle Delivery Systems Inc. a British Columbia corporation.
About Lifestyle Delivery Systems Inc.
Lifestyle Delivery Systems Inc. is a technology company that licenses its technology to a state-of-the-art production and packaging facility located in Southern California. The Company's technology produces infused strips (similar to breath strips) that are not only a safer, healthier option to other forms of delivery but also superior bioavailability of cannabis constituents. Some strips will also include supplemental co-active ingredients such as nutraceuticals, vitamins and peptides. The technology provides a new way to accurately meter the dosage and assure the purity of selected product. From start to finish, the production process, based on the Company's technology, tests for quality and composition of all the ingredients used in each and every strip which results in a delivery system that is safe, consistent and effective.
Lifestyle Delivery Systems Inc.
CEO & Director
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Cautionary Disclaimer Statement:
The Canadian Securities Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. The Company cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among other things: risks and uncertainties relating to the Company's limited operating history and the need to comply with environmental and governmental regulations. In addition, marijuana remains a Schedule I drug under the United States Controlled Substances Act of 1970. Although Congress has prohibited the US Justice Department from spending federal funds to interfere with the implementation of state medical marijuana laws, this prohibition must be renewed each year to remain in effect. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, The Company undertakes no obligation to publicly update or revise forward-looking information.
SOURCE Lifestyle Delivery Systems Inc.