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Item 9 Labs Corp. Announces Sale of AirWare Intellectual Property to Health Defense, LLC for $1.3 Million
Item 9 Labs Corp. Announces Sale of AirWare Intellectual Property to Health Defense, LLC for $1.3 Million.
About this update from Item 9 Labs Corp.
[{"type":"text","content":"\nSCOTTSDALE, Ariz., May 10, 2018 (GLOBE NEWSWIRE) -- Item 9 Labs Corp. (OTC:INLB) (“Item 9 Labs” or the “Company”), a leading provider of high-quality medical marijuana and developer of innovative medical cannabis treatments, today announced that it has executed an intellectual property sales agreement with Health Defense, LLC. (“Health Defense”), a Washington-state based company focused on developing wellness-oriented products, for a total purchase price of $1.3 million in cash. \n Under the terms of the agreement, Item 9 will maintain a 10% ownership interest in a newly formed AirWare IP company, Health Defense, LLC.  In addition to the purchase price, as a stakeholder in Health Defense LLC, Item 9 will continue to receive trailing revenue from the worldwide sales of all current products and new versions that are in development.  The sales and distribution entity, Protego LLC, provides 2 cents per unit sold plus 10% of annual net profits from sales to Health Defense, LLC.  As part of the agreement, Item 9 will establish a new exclusive licensing agreement with Health Defense for the AirWare Labs Nasal Filtration Dilator Inserts to be infused with CBD/THC for the Medical Cannabis Sector.  Item 9 intends to use the transaction proceeds for product development and general corporate purposes as the Company continues to penetrate the Medical Cannabis industry.  Bryce Skalla, Co-Founder & CEO of Item 9 Labs, commented, “The unique technology behind the AirWare intra-nasal filtration system is quickly positioning Item 9 as a leading player within the Medical Cannabis sector.  We believe that this proprietary system will continue to open new doors in other industries looking for the most advanced breathing devices and delivery systems and are confident that Health Defense will succeed in bringing this IP to the forefront of these markets.  We are extremely fortunate to have found a strong partner that can market and distribute this technology on a global scale, while we utilize the transaction proceeds for the continued development of our enhanced cannabinoid dosing and delivery.” Dan Voetmann, Co-Founder of Protego LLC and Health Defense LLC, stated, “According to a recent May 1, 2018 CNN article that referenced a study from the World H...