Vancouver, British Columbia – (Newsfile Corp. – September 27, 2018) – Benchmark Botanics, Inc. (CSE: BBT; FSE: BBW) (“Benchmark” or the “Company”). Benchmark is pleased to announce that the Company has entered into a Trademarks License Agreement (the “Agreement”) with Leidseplein Beheer B.V. (the “Licensor”), a company incorporated under the laws of the Netherlands, in which the Licensor has agreed to grant the Company use of “The Bulldog” trademark in Canada upon the terms and conditions set out in the Agreement.
Under the terms of the Agreement, the Company will pay an upfront fee of $120,000 to the Licensor, such amount to be satisfied by the issuance to the Licensor of 214,286 common shares of the Company at a price of $0.56 per share, based on the closing price of the Company’s common shares on the Canadian Securities Exchange on September 19, 2018.
As partial consideration for the license granted, the Company will pay to the Licensor royalties based on a percentage of Revenues of the products sold and services provided using “The Bulldog” trademark during the term of the Agreement within 30 days of the end of each quarter of each calendar year.
Under the Agreement, Revenue means the arm’s length gross sales received for sales of all licensed products to a third party after deduction of the sales tax and charges for freight, transportation and delivery of licensed products if these costs incurred.
Johnson Zhang, Chief Executive Officer of Benchmark, said: “This Agreement represents an important step in the Benchmark journey that both companies will realize benefits from, once the adult-use market in Canada is officially opened in 19 days, on October 17, 2018. With the use of The Bulldog trademarks, we will seek to build one of the most engaging and successful brands and develop leading products in Canada for the adult-use market.
With the addition of The Bulldog trademark, which has a long-established history as one of the most well-known coffee shop brands in Amsterdam and beyond, this agreement will assist the Company to position itself in the Canadian adult-use cannabis market. The Company is continuing to make prudent investments and efforts into marketing and branding of our products for the Canadian adult-use cannabis market.”
Johnson further commented that “the licensing of The Bulldog trademarks is only the beginning of long-term cooperation with the Licensor. Benchmark will explore other cooperation opportunities with the Licensor in the areas of strains development, branding, and marketing”.
About THE BULLDOG
THE BULLDOG is an Amsterdam-based company that owns and operates a chain of cannabis coffee shops, a five star hostel hotel in Amsterdam, locations in Canada and a merchandising line. The Bulldog No. 90 was the first coffee shop in Amsterdam and laid the benchmark for the contemporary coffee shop. What once began in a cellar, has grown into well recognized trade-name in several countries. THE BULLDOG Amsterdam has one of the longest histories of legalized recreational cannabis business with millions of customer visits to its stores every year.
Benchmark is a publicly traded company based in Vancouver, British Columbia that is positioned to provide financing, partnership and acquisition opportunities to licensed producers and ancillary businesses within the global cannabis industry.
In November 2017, the Company acquired its first subsidiary, Potanicals Green Growers Inc. Potanicals Green Growers possesses a Health Canada license to cultivate and sell cannabis as an Access to Cannabis for Medical Purposes (ACMPR) Licensed Producer. In its first phase of operations, Potanicals is currently cultivating in its 12,700 square foot PHASE I indoor production facility. Benchmark is pursuing additional sites to retrofit for large scale cultivation expansion.
ON BEHALF OF THE BOARD OF
BENCHMARK BOTANICS INC.
/s/ “Ping (Johnson) Zhang”
Ping (Johnson) Zhang
Chief Executive Officer
For Further Information
Benchmark Botanics, Inc.
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This news release contains forward-looking statements pertaining to various risks and uncertainties regarding future events. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “should”, “believe” and similar expressions are intended to identify forward-looking statements. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. This news release includes forward-looking statements with respect to the business and future objectives of the Company, including the generation of revenue and sales of cannbis in the adult-use market under the Cannabis Act (Canada). There are numerous risks and uncertainties that could cause actual results and the Company’s plans and objectives to differ materially from those expressed in the forward-looking information, including risks related to: (i) the facility and Potanicals’ operations; (ii) adverse market conditions; (iii) the ability of the Company to complete financings in the future; (iv) dependence on suppliers and skilled labour; (v) government regulation and compliance with the ACMPR and the Cannabis Act; (vi) managing and maintaining growth; and (vii) unfavourable publicity or consumer perception litigation; Actual results could differ materially from those currently anticipated due to a number of factors and risks including the risk factors discussed in this news release and in the Company’s disclosure documents, which can be found under the Company’s profile on www.sedar.com and on the CSE website. These statements speak only as of the date of this news release. Except as required by law, the Company does not intend to update these forward-looking statements.