October 11, 2016, Vancouver, B.C. – Veritas Pharma Inc. (“VRT” or the “Company”) (CSE: VRT; OTC: VRTHF; and Frankfurt: 2VP) is pleased to announce that Veritas has completed advancing $750,000 to Cannevert Therapeutics Ltd. With this payment the Company has made 50% of the payments required to earn a 80% ownership interest in Cannevert Therapeutics Ltd. (“CTL). Upon payment of $1,500,000, payable in terms of $250,000 every three months, the Company will earn an 80% ownership interest in CTL. Veritas also has an exclusive license agreement to market all proprietary products developed by CTL. Consequently, CTL can be referred to as the Veritas’ research arm with all of Veritas’ advances being used to expand CTL’s R&D efforts. While CTL has developed several candidate cannabis strains and is now fully engaged in chemical and biological assessment of these key strains, CTL will be testing several hundred more strains. While chemical assays allow for identification of therapeutically active cannabinoids along with other molecules, biological assays will confirm the clinical utility of each strain. Veritas’ focus is to develop cannabis strains that prove effective in treatment of conditions such as cancer pain, nausea, vomiting, and PTSD. The company’s goal is, once fulfilling funding requirements, to develop and patent CTL’s cannabis research, while providing physicians and the medical community with the necessary evidence to recommend Veritas specific strains with confidence for each specific condition to their respective patients.
In order to facilitate the payment of $250,000, the Company entered into a Promissory Note Agreement dated August 12, 2016 between the Company and an arm’s length lender to borrow an aggregate of $225,000. Under the Loan Agreement, the Company has drawn down the entire amount of the Loan. With each draw down of the Loan, the Company must add an amount equal to 15% of the Loan to the Loan (the “Bonus). Consequently, the Company must repay $258,750. There is no interest payable under the Loan. The Loan must be repaid at the earliest of (a) August 12, 2017, and (b) the date the Company has sufficient capital to repay this Loan.
About VERITAS Pharma Inc.
Veritas Pharma Inc. is an early stage pharmaceutical company developing innovative medicinal cannabis cultivars for specific disease conditions such as chronic pain, emesis (nausea/vomiting), and epilepsy. Using a ‘lean and mean’ approach to product development, the company aims to select candidate cultivars using classical pharmacology techniques and then immediately evaluate them in the clinic to maximize both product value and shareholder return. Veritas’ scientists are an inter-disciplinary team that consists of chemists, pharmacologists, anesthetists, and clinical pharmacologists. Their focus is to use their knowledge to streamline the development of cannabis based treatments to capture considerable market share.
For more information, please visit our website: veritaspharmainc.com
On behalf of the Board of Directors; Veritas Pharma Inc.
Dr. Lui Franciosi
Chief Executive Officer
Further information about the Company is available on our website at www.veritaspharmainc.com or under our profile on SEDAR at www.sedar.com and on the CSE website at www.thecse.com
Investor and Public Relations Contact
Veritas Pharma Inc.
Email: [email protected]
The CSE has not reviewed, nor approved or disapproved the content of this press release.