MYM Corporate Update
(TheNewswire)
VANOUVER, British Columbia – TheNewswire - December 31, 2019 – MYM Nutraceuticals Inc., (CSE:MYM) (OTC:MYMMF) (CNSX:MYM.CN) (“MYM” or the “Company”) is pleased to provide a corporate update on restructuring efforts and general corporate matters.
The Company continues to work diligently on its 2020 strategic plan. The focus has been re-defined to opportunistically pursue projects in the Company’s space that provide MYM with attractive anticipated levels of return with limited risk. Management is currently reviewing several opportunities to merge with or acquire complementary businesses that appear to meet the Company’s criteria on a preliminary basis.
Management has recently taken measures to lower expenditures through various efforts including the elimination of all non-essential staff. Effective December 31, 2019, several non-essential positions have been eliminated including Chief Legal Officer and Chief Scientific Officer. The Company would like to thank its former Chief Legal Officer and Corporate Secretary, Elizabeth Liu, and its former Chief Scientific Officer, Charith Raj Adkar Purushothama for their dedication and service to the Company. Both Ms. Liu and Mr. Purushothama will continue to support the Company in advisory roles. Mr. Robin Linden will assume the role of interim Corporate Secretary.
To further reduce overhead costs, the Company has entered into consulting agreements with remaining management whereby each manager has released the Company from all obligations under their respective employment agreement (which have been terminated) and has accepted ongoing compensation comprised of a reduced cash component and share consideration. The compensation shares, approximately $50 thousand per month, will be issued at the then current market prices.
SublimeCulture - in September 2019, communications with Health Canada indicated that after addressing some minor updates, the application is expected to be submitted for final approval. SublimeCulture has responded to all recent requests for information from Health Canada and continues to progress in the late stage application process.
International Brands - the Company has decided not to pursue its International Brands opportunities in Mexico and the UK and has entered into a Settlement Agreement and Release with Erick Factor, a former Director and Officer, pursuant to which Mr. Factor has agreed to settle his severance entitlement of $330,000 through the transfer to Mr. Factor of the Company’s exclusive rights to certain non-core assets currently being developed by the International Brands team, including intellectual property and trademarks of Joshua Tree, Dr. Furbaby, and Hempmed.
Colombia Organica - the Company has completed its due diligence on Colombia Organica and has decided that the structure and terms do not align with the Company’s focus and therefore won’t be moving forward with the contemplated transaction. The Company, however, is still engaged with Colombia Organica’s principals to find additional partners that may be better suited while keeping MYM involved on a more limited basis.
Université de Sherbrooke – the Company has terminated its relationship and will receive a partial refund of amounts previously advanced.
Weedon – the Company continues to explore various options for the Weedon facility, but it has not yet identified a viable alternative. The buildings previously used for office and housing space have been listed for sale. The Company will record a write-down of $6.7 million against property, plant, and equipment and $750 thousand against intangible assets in its November 30, 2019 financial statements.
The Company has outstanding notes receivable in the amount of $1.334 million from multiple debtors. Due to uncertainty, current market conditions and risks associated with the various receivables, the Company will record an allowance for doubtful amounts of $782 thousand against the total notes payable in the November 30, 2019 financial statements.
About MYM Nutraceuticals Inc.
MYM is uniquely positioned to opportunistically acquire and/or invest in companies within the cannabis and hemp industries that are in need of capital and management support. Our senior management team is made up of experts engaged in a wide array of disciplines – upper level management of public companies, finance, law, master growing, plant pathology, agricultural economics, pharmaceutical, engineering, global marketing, product development and branding, distribution and seed genetics. MYM is a shareholder in two production projects in Quebec and is actively looking to acquire complementary businesses and assets in the cannabis sector. MYM shares trade in Canada, Germany and the United States under the following symbols: (CSE: MYM) (OTC: MYMMF) (FRA:0MY) (DEU:0MY) (MUN:0MY) (STU:0MY).
ON BEHALF OF THE BOARD
Howard Steinberg, CEO
MYM Nutraceuticals Inc.
www.mym.ca
Investor Relations
Keep up to date with MYM on our social media channels:
Twitter: @mymnutra
Facebook: @mymnutra
Instagram: @mymnutra
Cautionary Note Regarding Forward-Looking Statements: This release includes certain statements and information that constitute forward-looking information within the meaning of applicable Canadian securities laws, including that SublimeCulture’s application is expected to be submitted for final approval. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends,” “anticipates,” “it is expected,” or variations of such words and phrases, or statements that certain actions, events or results “may,” “could,” “should,” or “would” occur. Forward-looking statements are based on certain material assumptions and analyses made by the Company and the opinions and estimates of management as of the date of this press release, including that the Company will be successful in identifying and pursuing acquisition and merger opportunities and SublimeCulture’s license application will be submitted for final approval. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors may include, among others, that the Company will not be able to identify, or complete, acquisition and merger opportunities and that SublimeCulture’s application will not be submitted for final approval or will otherwise not be approved, and the other risks and uncertainties applicable to the Company's business as set forth in the Company's management discussion and analysis and annual information form and the Company’s other disclosure available under the Company's profile at www.sedar.com.
There can be no assurance that the transactions contemplated in this news release will complete. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial outlook that is incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.
This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such. Neither the Canadian Securities Exchange (CSE or CNSX Markets), nor its Regulation Services Provider (as that term is defined in policies of the CSE), accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities law and may not be offered or sold in the “United States”, as such term is defined in Regulation S promulgated under the U.S. Securities Act, unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration requirements is available.
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