CHEMISTREE NEGOTIATES CONDITIONAL SALE OF WASHINGTON SUBSIDIARY
Chemistree Technology Inc. (CSE: CHM, OTCQB: CHMJF) announced the conditional sale of its Washington state subsidiary for $500,000 (approx. $644,563). The sale is contingent upon obtaining a Tier 3 recreational marijuana producer/process license transfer. The anticipated closing is in Q4 2022. CFO Douglas Ford emphasized the ongoing challenges in the cannabis sector, noting the struggle to maintain gross margins and raise financing. The company is reevaluating its focus on the cannabis industry in light of these difficulties.
- Conditional sale of Washington subsidiary for $500,000, providing liquidity.
- Anticipated closing in Q4 2022, indicating progress on strategic realignment.
- Struggles to maintain gross margins due to oversupply in the cannabis market.
- Challenges in raising additional financing, impacting operational capacity.
VANCOUVER, BC, Oct. 27, 2022 /PRNewswire/ - Chemistree Technology Inc. (CSE: CHM) (OTCQB: CHMJF) (the "Company" or "Chemistree"), announced that it has negotiated the conditional sale of its Washington state subsidiary.
The Company has executed a Share Purchase Agreement with an arms-length party, whereby the Company under certain circumstances would sell
Douglas Ford, Chemistree's CFO commented "The Company has been evaluating strategic alternatives for its Washington State assets for several months. The protracted downturn in the cannabis sector generally, and specifically in mature markets where supply has overcrowded demand, licensees are struggling to maintain gross margin. The Company has seen the ability to raise additional financing effectively cease, a fact that provided additional motivation to reassess the cannabis industry as a core focus overall."
About Chemistree Technology Inc.
Chemistree Technology Inc. is a Canadian investment company whose strategy is to focus on opportunistic investments across a broad range of industries, and is seeking to invest in early stage, promising companies where it may be the lead investor and can additionally provide investees with advisory services, mentoring and access to the Company's management expertise. Existing holdings are in the U.S. cannabis sector, a consumer-targeted biotechnology venture and a renewable energy developer in the wind and solar sector. For more information, visit www.Chemistree.ca.
Advisory
The Company wishes to inform shareholders that there are significant legal restrictions and regulations that govern the cannabis industry in both Canada and the United States.
Cannabis-related Practices or Activities are Illegal Under U.S. Federal Laws
The concepts of "medical cannabis" and "recreational cannabis" do not exist under U.S. federal law. The Federal Controlled Substances Act classifies "marihuana" as a Schedule I drug. Under U.S. federal law, a Schedule I drug or substance has a high potential for abuse, no accepted medical use in the United States, and a lack of safety for the use of the drug under medical supervision. As such, cannabis related practices or activities, including without limitation, the manufacture, importation, possession, use or distribution of cannabis are illegal under U.S. federal law. Strict compliance with state laws with respect to cannabis will neither absolve the Company of liability under U.S. federal law, nor will it provide a defence to any federal proceeding which may be brought against the Company. Enforcement of U.S. federal laws will be a significant risk to the business of the Company and any such proceedings brought against the Company may adversely affect the Company's operations and financial performance.
Further information regarding the legal status of cannabis related activities and associated risk factors, including, but not limited to, risk of enforcement actions, risks that third-party service providers, such as banking or financial institutions cease providing services to the Company, and the risk that Company may not be able to distribute profits, if any, from U.S. operations up to the Company, are included in the Prospectus, the Company's annual information form and other documents incorporated by reference therein and in the Company's Form 2A annual listing statement filed with the CSE and available under the Company's profile on SEDAR at www.sedar.com.
"Karl Kottmeier"
President
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Information set forth in this news release includes forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", "budget", "scheduled" and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. In particular, but without limiting the foregoing, this news release contains forward-looking statements pertaining to: the ability for the Company to pay future interest payments on the Debentures as such payments become due and the anticipated results of the Debenture Amendments on the debt burden and future operations of the Company.
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the risks identified in the Company's reports and filings with the applicable Canadian securities regulators. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by applicable law.
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SOURCE Chemistree Technology Inc.
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