BCC Appoints Beth Stavola President of its U.S. Operations
TORONTO, ON / ACCESSWIRE / January 24, 2017 / The Canadian Bioceutical Corporation (the "Company" or "BCC") (CSE: BCC, OTC PINK:CBICF) today announced that it has appointed Elizabeth (Beth) Stavola as President of the Company's wholly owned subsidiary, CGX. In her new role, Ms. Stavola will be responsible for the operation of the Arizona business, as well as the Company's other U.S. operations.
On January 23, 2017, BCC announced the completion of its acquisition of highly profitable cannabis assets in Arizona. The Company intends to utilize its Arizona operations as a platform for growth to establish a vertically integrated multi-state cannabis operation. As President of CGX, Ms. Stavola, a serial entrepreneur and founder of the Arizona businesses acquired by BCC, will spearhead these expansion efforts.
Ms. Stavola is also the founder of Stavola Medical Marijuana Holdings, Health for Life Inc., GreenMart of Nevada, GreenMart of Maryland, Elemental Health Group of Pennsylvania, and CBD For Life. She has been the driving force behind the development of these thriving cannabis businesses into profitable, strong brands. Prior to her successful career in the cannabis industry, Ms. Stavola was a senior Wall Street executive, where she spent most of her career at Jefferies and Company, most recently as Senior Vice President, Institutional Equity Sales.
"We are extremely pleased with the continuing and growing involvement of Beth in our U.S. business," stated Scott Boyes, CEO of BCC. "Beth is an incredibly successful and visionary cannabis entrepreneur who has been able to secure valuable licenses and build very profitable operations from the ground up. She is recognized as a key individual in the cannabis sector by market participants, politicians, and key influencers alike. We believe that her knowledge of, and networks in, the cannabis and capital markets space will prove extremely valuable to BCC's expansion."
Ms. Stavola added, "Teaming up with BCC enables us to execute on our consolidation strategy in the U.S. Their experience in, and understanding of, the cannabis space, their expertise and capacity in structuring deals, as well as their proven access to capital will provide our organization with the means to capitalize on the opportunities created by a large and growing, but very fragmented, cannabis sector. I look forward to working with Scott and the rest of the team to continue building BCC into one of the key companies in the sector."
The Health for Life brand, supported by CGX following the transaction, has achieved significant sales and positive cash flow within 5 years of inception, and maintains one of the strongest compliance records in the state of Arizona, receiving a 100% score on the last several state compliance audits. This track record has afforded Ms. Stavola the ability to establish a banking relationship for the business, setting the Company apart from nearly all of its peers in the cannabis industry.
Melting Point Extracts (MPX), the other brand supported by CGX following the transaction, has become a well-respected and sought after brand in Arizona and Nevada, now servicing approximately 40% of Arizona's dispensaries through its wholesale business of award winning cannabis extract products. CBD For Life, another company founded by Ms. Stavola, has participated in several important CBD research conferences, including the CannaTech conference in Israel, which was created to help accelerate cannabis research and innovation.
Upon effecting the appointment, the Corporation granted stock options to Ms. Stavola and her team to acquire: (a) 3,500,000 Common Shares at an exercise price of $0.20 per Common Share, which shall vest immediately; (b) 3,500,000 Common Shares at an exercise price of $0.60 per Common Share, which shall vest after the second anniversary of Ms. Stavola's employment with CGX; and (c) 3,500,000 Common Shares at an exercise price of $1.00 per Common Share, which shall vest after the third anniversary of Ms. Stavola's employment with CGX.
About The Canadian Bioceutical Corporation
BCC, an Ontario corporation, through its wholly owned subsidiaries in the U.S., provides management, staffing, procurement, advisory, financial, real estate rental, logistics, and administrative services to two medicinal cannabis enterprises in Arizona. While the Company does not directly own, possess, or sell cannabis or cannabis-infused products, it does provide substantial support and exerts considerable influence over these two businesses, which are legally authorized to sell medical cannabis and derivative products.
Under the Health for Life ("H4L") brand, the two licensed dispensaries operate in the Mesa area, which is part of the rapidly growing Phoenix Metropolitan Statistical Area (MSA) with a population of 4.6 million people. Additionally, the Company supports the Melting Point Extracts ("MPX") brand. The award winning MPX products have facilitated rapid growth of the brand's wholesale business, now supplying a growing number of Arizona dispensaries.
The Company also leases a property in Owen Sound, Ontario, for which an application to Health Canada has been made for a cannabis production and sales license. In addition, the Company will continue its efforts related to its legacy neutraceuticals business.
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, the Transaction and BCC's objectives and intentions. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and social uncertainties; litigation, legislative, environmental, and other judicial, regulatory, political, and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in BCC's public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Although BCC believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, BCC disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
On behalf of the Board of Directors
The Candian Bioceuticals Corporation
T: +1 416 848 1397
SOURCE: The Canadian Bioceutical Corporation