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TORONTO, Jan. 18, 2019 /CNW/ – Alternate Health Corp., (“Alternate Health” or the “Company“) (CSE:AHG) (OTCQB:AHGIF), an international leader in technology solutions for the regulated cannabis industry, announced today that that Company has secured state licenses for the manufacturing and distribution of cannabis at its facility in Los Angeles, California in addition to its licenses in Humboldt County, California.
“This is a tremendously exciting accomplishment for Alternate Health and solidifies our position in California’s highly lucrative commercial cannabis market,” says Howard Mann, CEO of Alternate Health. “Los Angeles is one of the most valuable markets in the cannabis industry and our facility is ideally located to manufacture and distribute top-quality cannabis products.”
Kare MMJ, which was acquired by Alternate Health in a deal announced on November 20, 2018, was recently approved by the state of California for its cannabis manufacturing and distribution licenses. The newly issued licenses allow Alternate Health to begin operations at its 5,000 square foot Los Angeles location. The Company will initially be manufacturing and distributing a line of flavoured cannabis extract products through its premiere Bionic Bee brand.
Alternate Health’s Los Angeles licenses were secured in addition to the licenses for its facility in Humboldt County, California, on October 20, 2018, which will continue to operate as the primary location for the production and distribution of cannabis flower and infused edibles.
The Company has also made several operational updates and continues to progress with its strategic plan in the California cannabis market
Private Placement
As announced on December 10, 2018, Alternate Health closed a non-brokered private placement of 12,739,000 common shares for aggregate gross proceeds of CAD$5,095,000. Proceeds of the private placement are already being used to expand the Company’s cannabis technology platform in addition to key product development and implementation of distribution activities in California.
Debt Finance Agreement
Alternate Health continues to work with Agincourt Ventures to secure $20 million as part of the debt finance agreement announced on November 8, 2018. The Company originally expected to receive funds in two tranches on November 30, 2018 and December 20, 2018 with a funding deadline of January 15, 2019 as specified in a binding letter of intent. Alternate Health agreed to extend the deadline 14 days to January 29, 2019 as the result of an unexpected delay encountered by Agincourt Ventures during the process of converting investment assets to cash to be used to fund the agreement.
“I am extremely pleased with the progress we have made in the short time since securing our commercial cannabis licenses in Humboldt County,” says Howard Mann. “Adding the Los Angeles licenses to our portfolio is an extraordinary accomplishment for the Company and our shareholders. We will continue building on the success of our highly advanced technology platforms while expanding operations in the regulated cannabis industry and driving revenue.”
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