Wildflower Distribution Agreement in South Africa Has a Clear Path with Legalization
VANCOUVER, British Columbia, June 7, 2019 - Wildflower Brands Inc. (CSE: SUN, OTC: WLDFF) (the “Company” or “Wildflower”) announces that further to its news release of May 22, 2019 announcing the signing of an exclusive distribution agreement for the South African market, South Africa has legalized CBD.
South Africa’s Department of Health removed cannabidiol, or CBD, from the country’s Schedule 7 list of highly controlled substances, allowing for legal sale of CBD made in accordance with the government’s specifications.
The exemption comes with two conditions: the maximum daily dose of CBD must be 20 milligrams or less, and the product cannot claim to cure or treat any specific condition. It may only advertise “general health enhancement”, or “health maintenance”, or promise “relief of minor symptoms”, as long as those symptoms are not linked to a disease or disorder.
Alternatively, manufacturers and retailers can also claim the protection of the exemption for products made “from cannabis raw plant material and processed products” as long as no extra CBD is added, and the final product contains only a tiny fraction of CBD (0.0075%) and a maximum of 0.001% tetrahydrocannabinol, or THC, the main psychoactive in marijuana.
This exemption will expire on May 15, 2020, unless renewed.
The exclusivity agreement entered into was granted to Africann, a local company specializing, amongst others, in the distribution of best-of-breed North American hemp products. Africann has access to all the main distribution networks in the health and wellness category including retail pharmacy chains, independent pharmacy networks, and specialty outlets such as gyms, men’s health clinics and vape shops. In addition, Africann also has the medical side covered with access to dispensing doctors, clinics/day hospitals and oncology treatment centres for example.
William MacLean, Chief Executive Officer of Wildflower, says, “We are pleased with this meaningful change to South Africa’s legislation. I believe we will see other countries open their markets to CBD very soon. We look forward to working with our local partners to get Wildflower products on the shelves in South Africa.”
Further to the Company’s news release of April 12, 2019, the Company wishes to announce that it is amending the terms of the previously announced financing. Each subscription receipt will now be priced at $0.65 and will entitle the holder to receive, without payment of additional consideration or further action, a Unit (a “Unit”) consisting of one common share of the Company and one share purchase warrant (“Warrant”). Each Warrant will entitle the holder to acquire one common share of the Company at a price of $1.00 for a period of 24 months following the closing date of the private placement. Once resale restrictions on the Shares having expired and upon Company’s shares trading at or above a weighted average trading price of $1.50 for 20 consecutive trading days, Wildflower may give notice that the Warrants will expire 30 days from the date of providing such notice (in writing to Warrant holders and via a news release). All other terms of the syndicate and fees remain the same.
Wildflower Brands is a Vancouver-based company developing and designing brands that focus on plant-based health and wellness products. All of our brands work in synergy, toward becoming a global wellness leader.
The Canadian Securities Exchange Inc. has neither approved nor disapproved of the contents of this press release.
For more information about Wildflower Brands, visit wildflowerbrands.co. To learn, engage and shop our wellness products visit buywildflower.com.
Investor Relations Contact:
Will Elston, Investor Relations