Update on Agreements with Canopy Growth and Canopy Rivers Regarding Eureka 93 Inc.’s Cannabis Business in Canada
Ottawa, Ontario, April 26, 2019 – As previously disclosed on November 22, 2017, LiveWell Canada Inc. (CSE: LVWL), recently renamed Eureka 93 Inc. (“Eureka93”), entered into an arrangement with Canopy Growth Corporation (“Canopy”) (TSX: WEED) (NYSE: CGC) and Canopy Rivers Corporation (“Rivers”) (TSXV: RIV) consisting of three agreements (the “Agreements”): an Investment Agreement, a Royalty Agreement and an Offtake Agreement (which agreements were amended on April 2, 2018).
On April 3, 2019, Eureka93 received notice from Canopy and Rivers alleging, among other things, that Eureka93 had breached a number of covenants in favour of Canopy and Rivers under the Agreements, including an allegation that Eureka93 failed to provide notice to Canopy of the proposed merger of LiveWell Canada Inc., Vitality CBD Natural Health Inc. and Mercal Capital Corporation. Canopy and Rivers have taken the position that they are terminating the Agreements.
It is Eureka93’s position that Canopy and Rivers have missed a key milestone in two of the Agreements around obtaining the ACMPR license at both the Artiva location and LiveWell Québec location. Management believes there is no factual basis for the position taken by Canopy and Rivers, that their claims are tactical, and that Canopy and Rivers are in breach of all of the Agreements for, among other things, failing in their obligation to assist Artiva and Eureka93 in obtaining the ACMPR license, entitling Eureka93 and Artiva to terminate the Agreements. Management strongly believes the allegations and claims put forward by Canopy and Rivers are frivolous, and disputes the positions taken by Canopy and Rivers with respect to termination of the Agreements. The Company will vigorously pursue its rights through the dispute resolution process set out in the Agreements.
About Eureka 93 Inc.
Eureka 93 Inc. is one of the largest hemp cultivation and extraction operations in North America. The vertically integrated company is dedicated to producing the highest-quality CBD products for its customers. Eureka93 is a design-driven company for creative solutions in systems, products, packages and services.
For more information visit www.eureka93.com
Certain statements contained in this news release constitute forward-looking statements or forward-looking information under applicable securities legislation. Forward-looking statements include all disclosures regarding possible events, conditions or results of operations that are based on assumptions about future economic conditions and courses of action. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Often, but not always, forward-looking statements can be identified by the use of words or phrases such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, “believes” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, and may be based on management’s current assumptions and expectations related to all aspects of the Company’s business, industry and the global economy. Further, the Company cautions that this foregoing list of material factors is not exhaustive and additional information identifying risks are detailed from time to time in the Company’s other continuous disclosure filings.
The forward-looking information contained in this press release represents expectations of the Company as of the date of this press release and accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, it does not undertake to update this information at any particular time except as required in accordance with applicable securities laws.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Eureka 93 Inc.
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David Rendimonti, Chief Executive Officer
Steven Archambault, Chief Financial Officer