Business
AREV TO ENTER INTO COLLABORATION PROJECT TO EXTRACT FUNCTIONAL MUSHROOMS
AREV TO ENTER INTO COLLABORATION PROJECT TO EXTRACT FUNCTIONAL MUSHROOMS.
About this update from Arev Life Sciences Global Corp.
[{"type":"text","content":"Arev to enter into COLLABORATION PROJECT TO extract functional mushrooms VANCOUVER, BC / November 26, 2019 / AREV BRANDS INTERNATIONAL LTD. (CSE: AREV) (OTC: AREVF) (“AREV Brands”) is pleased to announce that it has entered into a Letter Agreement with Absolem, the terms and conditions of a proposed business collaboration (the “Transaction”) between Absolem Health Corp (“Absolem”) and Arev Brands International Ltd. (“Arev”).The Transaction involves two stages. During the first stage (“Stage 1”), Absolem will make the cash and share payments to Arev described below, and Arev will undertake the development work described below. In the second stage (“Stage 2”), informed in part by the results of the development work undertaken by Arev in Stage 1, Absolem and Arev will form a joint venture to develop, produce and sell mushroom extracts and mushroom-based products. Each of Stage 1 and Stage 2 of the Transaction is subject to receipt of applicable regulatory and stock exchange approvals. The Parties intend to replace the Letter Agreement with a definitive agreement (a “Definitive Agreement”).Absolem will pay $100,000 to Arev, of which $20,000 will be paid in cash (the “Cash Payment”), and $80,000 will be paid by the issuance to Arev of common shares of Absolem at a price of $0.075 per share (the “Payment Shares”). Subject to AREV’s satisfaction of due diligence under subsection 1(a), Arev agrees forthwith to apply the Cash Payment to the purchase of specific additional extraction equipment, particulars of which have been provided to Absolem prior to the date of this Letter Agreement (the “New Equipment”). The estimated purchase price of the New Equipment is US $40,000. Arev will pay the difference between the Cash Payment and the purchase price of the New Equipment. The New Equipment will be owned by Arev. In consultation with Absolem, Arev will conduct research and will develop methods for deriving extracts from mushrooms utilizing the New Equipment and other extraction equipment which it owns (the “Extraction Methods Research”), which research shall not involve any prohibited activities unless official authorization in writing has been granted to Arev for such prohibited activities under Part J of the Canada Food and Drug Regulations. Arev shall not perform nor allow on its premises any illegal activities. Other than the supply...