First Hemp Sale to Montenegro Bio Science
As disclosed earlier in the fiscal year, Company possessed 310 tons of unprocessed hemp in stock, which became about 98 tons of leaf and flower ready for extraction, after processing and selection.
On August 5, 2019, Intiva Plus d.o.o., a Serbian subsidiary of the Company, sold and delivered 97,276 kg of hemp inventory for â‚¬18 per kg (â‚¬1,750,968 total) to Montenegro Bio Science d.o.o. (“MBS”), with the purchase price payable in monthly â‚¬150,000 instalments commencing not later than 60 days after the date of delivery, with the final instalment to be adjusted and full payment within 13 months of delivery. The hemp sold represented 95% of the processed hemp inventory of the Company (on a consolidated basis) from 2017 and 2018. This agreement was entered into by the CEO as an emergency preventative counter-measure (see Commission for Psychoactive Controlled Substances in Republic of Serbia below) and is yet to be approved and ratified by the board of directors (the “Board”).
Joint Venture Extraction in North Macedonia
On August 30, 2019, the Company’s CEO provided to the members of the Board a “Contract for Co-operation” (the “Extraction LOI”) with a joint venture consisting of Galafarm Dooel Skopje Macedonia (with licence for extraction, HACCP and GMP standards, and infrastructure). Based on that Extraction LOI, the CEO approved an advance payment of â‚¬100,000 on April 5, 2019 as a part of the costs of future services provided. The purpose of this payment was to ensure the priority in line of extraction and packing of final products to be made on behalf of the Company, by Galafarm Dooel. North Macedonia has a progressive hemp and medical cannabis regime. There is no limit for THC% in final product. This agreement is yet to be approved and ratified by the Board.
The Company’s 2019 hemp harvest from Vojvodina (the agricultural northern region of Serbia) is underway and the Company has also already pre-paid for 72 tons of processed hemp from an established Croatian farmer (with an option to purchase more). Actual total amounts of hemp available will depend on the Serbian harvest as there was crop damage.
The Company is considering having the new processed hemp to be extracted at the Galafarm facility in Macedonia as a third party extractor.
Commission for Psychoactive Controlled Substances in Republic of Serbia
The Company has become aware of an opinion (the “Opinion”) issued by the Commission for Psychoactive Controlled Substances in the Republic of Serbia dated May 29, 2019 which recommends that, subject to certain exceptions, cannabis not be cultivated, imported or exported, and cannabidiol (CBD) not be produced in Serbia.
The Company has considered the Opinion but cannot conclusively predict what will or will not be accepted by the Government of Serbia especially in the face of upcoming elections scheduled for no later than April 2020.
In any event, the Company is preparing contingency plans should it become apparent that the Government of Serbia will pass legislation outlawing the import, export or cultivation of hemp or the production of CBD in Serbia. These include third-party extraction of hemp in countries outside of Serbia and the sale of the hemp as previously contemplated.
About Eviana Health Corporation
The Company was established with the aim of delivering customized consumer health care products using natural hemp strains of cannabis sativa for cannabinoid-based topical creams, products and cosmeceutical and nutraceutical merchandise. The Company’s wholly owned subsidiary, Eviana Inc., an Ontario corporation, holds certain assets in Serbia relating to the cultivation of industrial hemp plant oil for the pharmaceutical, nutraceutical and cosmeceutical industry, and has access to a significant grower/supplier of cannabinoids including two subsidiaries, Intiva Plus, d.o.o. and Eviana d.o.o.
FOR FURTHER INFORMATION PLEASE CONTACT:
Avram Adizes, CEO
Tel: (416) 301-9654
Eviana Health Corporation
This news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “would”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company’s publicly filed disclosure. The Company undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.
SOURCE: Eviana Health Corporation
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