- Oops!Something went wrong.Please try again later.
Radient's Signature Brands and Licensed Partner Brands to be Sold in Several New Provinces; Company Expects to Further Reduce its Operating Expenses
Edmonton, Alberta--(Newsfile Corp. - September 9, 2021) - Radient Technologies Inc. (TSXV: RTI) (OTC Pink: RDDTF) ("Radient" or the "Company"), a commercial manufacturer of diverse, novel and high-quality cannabis extracts and packaged products, is pleased to provide shareholders with the following corporate update.
First Shipment of TunaaaaRoom Xtracts Products to Ontario:
Radient is pleased to announce that it has completed its first shipment of TunaaaaRoom Xtracts Inc. ("TRX") products to Ontario. TRX products are now sold through provincially licensed retailers in a total of six Canadian provinces and territories: Ontario, British Columbia, Alberta, Saskatchewan, the Northwest Territories, and the Yukon. Additionally, the Company announces today it has received approval to begin selling TRX products in New Brunswick.
On December 8 2020, Radient announced it had signed a licensing agreement with TunaaaaRoom, an Alberta-based cannabis company, to co-develop and distribute a wide range of premium cannabis extracts targeting cannabis consumers, to be sold across Canada, where permitted, under the TunaaaaRoom Xtracts brand.
Radient has since entered into a letter of intent (the "LOI") announced on June 30, 2021, pursuant to which the Company proposes to acquire 100% of the issued and outstanding shares of TRX (the "TRX Acquisition"). Under the terms of the LOI, Radient will receive 100% of the gross sales of TRX branded products, and will be subject to paying TunaaaaRoom a fee equal to 2% of the gross sales of such products for at least three years following the completion of the TRX Acquisition. Radient intends to update shareholders on the progress of the TRX Acquisition in the coming months.
First Purchase Orders for Atomic Eh Products:
Radient is pleased to announce today that its licensing partner brand, Atomic Eh, has received purchase orders from provincial distributors in Saskatchewan, British Columbia, Alberta, and New Brunswick. In addition, Atomic Eh products are now registered for sale in Manitoba and the Northwest Territories.
On May 3, 2021, Radient signed a definitive licensing agreement (the "Agreement") with Atomic Eh to launch its first cannabis brand targeting under-served indigenous communities. Radient is working exclusively with Atomic Eh to roll out its Cannabis 2.0 products, including BHO extracts, vape cartridges, dried flower, edibles, and solventless extracts using Radient's distribution channels. Pursuant to the Agreement, Radient has agreed to manufacture between 25,000 - 50,000 units of product per month, to be sold under the Atomic Eh brand, providing Radient with additional product offerings on retail shelf space.
To execute on these initiatives and manage the supply chains for timely product delivery, Radient has also secured funds against its receivables for up to $2M a month from a lending group. These will be used for working capital purposes.
Additional Initiatives to Reduce Operating Expenses:
Radient announced in a corporate update on July 21, 2021 that it is implementing several strategies to reduce its operating and SG&A expenses in order to put the Company on the path to profitability in future. Radient announces today that as part of these initiatives, the Company will no longer be utilizing the laboratory space at 8223 Roper Road (the "Roper Road Lab"), and intends to move its laboratory activities including product testing to its Health Canada-approved Edmonton I and Edmonton II facilities, as well as the facilities of PBR Laboratories Inc., a company which Radient intends to acquire in accordance with the terms of a letter of intent described in the Company's press release dated July 29, 2021 (the "PBR Lab Acquisitions"). Radient expects that the termination of the lease on the Roper Road Lab and related equipment will reduce its monthly expenses by approximately C$30,000 per month moving forward.
"Retail sales of the products Radient has launched so far have remained very strong, and we are very excited by what we have achieved since we announced the strategic turnaround of the Company in July," commented Radient's CEO, Harry Kaura. "With several new products coming to market, and several potential acquisitions under negotiation that we believe will be beneficial to our future growth, we are very pleased that we have also managed to significantly reduce our monthly expenses in a way that we project will not disrupt our current and future revenue-generating activities."
Radient Technologies is a commercial manufacturer of diverse, novel and high-quality cannabis extracts and packaged products, specializing in identifying existing market gaps and bringing products that fulfill these gaps to consumers. With scientific and industry expertise at its foundation, Radient develops specialty products that contain a highly engineered and unique range of cannabinoid and terpene profiles, while meeting the highest standards of quality and safety. Radient also operates a scientific and product-testing laboratory that offers unique solutions to the cannabis and wellness spaces. Please visit www.radientinc.com for more information.
For more information, please contact:
Harry Kaura, CEO & Director
Ph: 780 465 1318
Completion of the TRX Acquisition and PRB Labs Acquisition (the "Proposed Transactions") is subject to a number of conditions including, 1) completion of due diligence and execution by the Company and the vendors of definitive agreements in connection therewith (the "Definitive Agreements"), 2) receipt by the Company of all requisite corporate and regulatory approvals, including approval of the TSXV, and other closing conditions customarily found in transactions similar to the Proposed Transactions. There can be no guarantees that the Proposed Transactions will be completed as contemplated or at all.
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the Proposed Transactions, including the Company's ability to enter into the Definitive Agreements and complete the Proposed Transactions; the proposed synergies among Radient and PBR Labs; the proposed benefits to Radient of the Proposed Transactions; the business and operations of the Company; the purchase orders expected to be received from provincial distributors; and the Company's ability to execute its business plan, including its growth strategy and its ability to (i) sell its brands and licensed brands to indigenous communities and provincial distributors, (ii) manufacture products in the quantities agreed pursuant to the Agreement, (iii) implement operating and SG&A cost-cutting strategies, and (iv) move its laboratory activities. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Radient, as the case may be, to be materially different from those expressed or implied by such forward-looking information, including but not limited to: receipt of necessary approvals, permits and purchase orders; general business, economic, competitive, political and social uncertainties; future cannabis prices; accidents, labour disputes and shortages and other risks of the cannabis industry. Although Radient has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Radient does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/95979