VANCOUVER, British Columbia, Aug. 27, 2019 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- The Yield Growth Corp. (CSE:BOSS) (BOSQF) (YG3.F) is pleased to announce that it has entered into a distribution and licensing agreement dated August 25, 2019 with 2699598 Ontario Corp. DBA Melorganics Hellas ("Melorganics") for European rights to six product formulas for CBD infusion for a fee of $900,000.
Yield has agreed to license to Melorganics in perpetuity the non exclusive rights to formulas and know-how to manufacture and distribute CBD foot cream, CBD body oil, CBD muscle relief balm, CBD body exfoliant, CBD relief gel and CBD hand cream. The formulas may be developed by Melorganics into products infused with CBD and other cannabinoids and distributed throughout the European Union under one brand to be developed by Melorganics (the "Brand").
Yield shall have approval on the Brand and packaging of the products. The $900,000 fee is due within one week and may be paid by the issuance of Melorganics Units to Yield. Upon being issued Melorganics Units, Yield shall own approximately 18% of Melorganics and shall have the right to appoint a Director to the Board of Directors of Melorganics. The value of the Melorganics Units are based on the most recent private placement into Melorganics.
"We are excited to expand our relationship with Melorganics to bring our CBD products into Europe both as a new brand to be developed and also through the Wright & Well brand," says Penny Green, CEO of Yield Growth. "The quality of our products and the strength of our brands allow us to continue to generate revenue and build our assets to bring value to our shareholders."
Yield Growth has also agreed to grant Melorganics exclusive distribution rights to the Wright & Well brand of CBD products for the territory of Greece and Cyprus for a term of two years for a fee of $100,000, payable after a definitive distribution agreement is signed between the parties and after at least 3 Wright & Well products have been registered for sale within the European Union.
As previously announced, Melorganics was appointed as the exclusive retail distributor and non-exclusive e-commerce distributor for Yield Growth's Urban Juve products in Greece and Cyprus. To maintain exclusivity in the territory, Melorganics must purchase a minimum amount of Urban Juve products of $300,000 in Year 1 and $500,000 in each subsequent year.
"We are delighted to partner with Yield Growth and now also have access to the Wright & Well Brand. Multiple SKUs is the best way to enter any market. Now when the product lines are also outstanding in quality, you really can't go wrong," says Tom Vachliotis, President of Melorganics Hellas.
Yield Growth is in the process of registering all of its Urban Juve products for sale in the European Union with 2 products approved to-date and 9 more anticipated to complete registration in the fall.
Yield Growth announces a financing of $500,000 through the issuance of special warrants at $0.30 convertible into units consisting of one share and one warrant to purchase an additional share at $0.35 for a period of two years.
Melorganics Hellas plans to enter the Greek and Cypriot markets with a full line of CBD products. The company is in the process of securing exclusive rights and strategic alliances with leading companies both in Greece and Canada; companies that are focused on the development of unique health products and nutraceuticals utilizing cannabis and botanical oils. The company is founded by Athanasios (Tom) Vachliotis (a Greek and Canadian Citizen), and John Philpott, who both have proven success in different business ventures. Vachliotis has deep ties to Greece and many past business successes. Philpott is the CEO of CanAm Physician Recruiting Inc., Canada's premier physician placement firm. He was the CEO of Canabo Medical Corp., which obtained a public listing in 2017 and merged in 2018 with Aleafia Health Inc. in a transaction valued at $40 million and resulting in a combined operation with a market cap over $200 million. In 2019, the TSX.V announced Aleafia as one of the top 50 best run companies listed on the exchange for 2018.
About The Yield Growth Corp.
The Yield Growth Corp. develops, manufactures and distributes cannabis and hemp infused product brands Urban Juve and Wright & Well and has a catalogue of over 200 wellness and beauty formulas. It intends to disrupt the international wellness market, which is a $4.2 trillion global economy, according to the Global Wellness Institute, by connecting ancient healing with modern science and technology. Its management team has deep experience with global brands including Johnson & Johnson, Procter & Gamble, M·A·C Cosmetics, Skechers, Best Buy, Aritzia, Coca-Cola and Pepsi Corporation. Yield Growth serves mainstream luxury consumers who seek sophisticated wellness products. Its flagship consumer brand, Urban Juve, has proprietary, patent-pending extraction technology and has 12 patents pending. Yield Growth is building robust international distribution channels and has multiple revenue streams including services, licensing and product sales.
Investor Relations Contacts:
Penny Green, President & CEO
Kristina Pillon, Investor Relations
The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.
Cautionary Statement Regarding Forward-Looking Statements
This press release includes forward-looking information and statements (collectively, "forward looking statements") under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates, forecasts, beliefs and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such risks, uncertainties and factors include, but are not limited to: risks related to the development, testing, licensing, intellectual property protection, and sale of, and demand for, Urban Juve, Wright & Well, and UJ Beverages products, general business, economic, competitive, political and social uncertainties, delay or failure to receive board or regulatory approvals where applicable, and the state of the capital markets. Yield Growth cautions readers not to place undue reliance on forward-looking statements provided by Yield Growth, as such forward-looking statements are not a guarantee of future results or performance and actual results may differ materially. The forward-looking statements contained in this press release are made as of the date of this press release, and Yield Growth expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.