December 14, 2017
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Lotus Ventures Inc. (“Lotus” or the “Company”) is pleased to announce that it has entered into an Agreement to license its intellectual property including its proprietary facility design, the first of a planned national expansion. The licensee will be a newly formed company owned by Lotus and 4th Gen Duwyn Farms Inc. (“DFI”) in Southwestern Ontario, headed by Shawn Duwyn, its President. The Duwyn family has been in the business of growing tobacco for four generations since the mid 1920’s.
Lotus has developed this unique business model to leverage the Company’s assets, increase cash flow and minimize capital investment. This Agreement is the first of planned expansion nationally which will see Lotus partnering with farmer growers who recognize the value of the Lotus IP and who have the financial, intellectual and managerial resources to capitalize on this market opportunity. The partnership with DFI will allow Lotus to double its production volume with minimal capital investment and to build scale in its business in anticipation of full legalization in 2018.
Under the Agreement, Lotus will provide DFI access to its IP including building design, standard operating procedures, training and license application support in return for DFI selling 100% of the production from the facility (1.8 million grams) to Lotus for a period of 15 years at a discount to wholesale pricing.
DFI has been studying opportunities to enter into the cannabis production market and has been looking for the appropriate strategic partner. The Duwyn family has generations of quality production and operational experience in tobacco farming which can be applied to the cannabis market. Shawn Duwyn has a diploma in mechanical engineering and an appreciation of the technical advantages of the Lotus designs and operating knowledge. Shawn’s uncle has extensive experience in engineering and building design and performance.
Shawn Duwyn, President of DFI says “I was very pleased to meet the Lotus team in August and believe that they are the right people to partner with and we are confident that their facility design and knowledge are what is needed to be a consistent premium product producer of cannabis, just as we have been in our business over generations. We are excited to enter into this new market and believe we have what it takes to succeed.”
Dale McClanaghan, President and CEO of Lotus said “Our agreement with DFI will help us realize the significant business opportunity we foresee with legalization around the corner and the great need for additional licensed production. What really is important to Lotus, is that we partner with the right people and we believe Shawn and his family are a perfect fit for us.
ON BEHALF OF THE BOARD
Lotus Ventures Inc.
Dale McClanaghan, President and CEO
For further information: Dale McClanaghan: email@example.com (604) 644-9844
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