On June 4, 2020,Core One Labs Inc (OTCMKTS:CLABF) signed a non-binding LOI to take over Rejuva Alternative Medicine Research Centre Inc. The company will also acquire a 25% stake in Shahcor Health Services Inc.
As per the terms of the pact, Core One Labs will issue 23 million shares to the investors of Rejuva. The company will pay cash of $400,000 and issue 5.55 million shares to the investors of Shahcor. If Shahcor can maintain monthly revenues of a minimum of $30,000 in 90 days following the takeover, its investors can benefit from a bonus of $1 million.
Walk-in medical clinics
Both Shahcor and Rejuva maintain walk-in medical clinics in British Columbia, West Vancouver, and Vancouver. They hold a subscriber base of more than 200,000 patients. Core One Labs plans to promote products of these businesses by launching R&D in their clinics.
Core One Labs can use the large patient base of the clinics for R&D and create unique delivery methods. CannaStrips infused strips that comprise cannabis promotes easy absorption of the ingredients and minimizes dosage requirement.
Plans to mobilize $4 million
Core One Labs will generate cash of $4 million by privately placing 42.1 million common shares. It will use the proceeds to pay strategic acquisitions, evaluating the transaction, and for working capital.
Receives management cease trade order
Core One Labs received an MCTO (Management Cease Trade Order) from BCSC (British Colombia Securities Commission) to submit financial statements for 2019. It is on the backdrop of some expected delays in collecting the required documentation and data for the audit. Earlier, CSA (Canadian Securities Authorities) offered relief to Core One Labs to delay filing financial statements because of an ongoing coronavirus crisis.Core One Labs now expects to complete filings on or before July 15, 2020.
Core IsogenicsInc completes harvest
Core IsogenicsInc, a subsidiary of Core One Labs, completed the second harvest at its Adelanto facility. It is now conducting a third harvest. Both the harvests comprise 20% of the flowering capacity. The recurring harvests help the company get yields of up to 60 pounds of high-quality flowers. High-quality flowers grown indoors fetches up to $1,800 for each pound.