KMT-Hansa Corp. Completes Bridge Financing and Enters into Agreement with Pure Global Cannabis Inc. – Yahoo Finance

NEX: KMC.H

ANGUILLA , British West Indies, Sept. 27, 2019 /CNW/ – KMT-Hansa Corp. (“KMT” or the “Company”), is pleased to announce that it has closed a bridge financing (the “Bridge Financing”), as previously announced on press releases dated August 27, 2019 and September 9, 2019 , of an aggregate of 7,515,152 common shares of the Company (the “Shares”), at a price of $0.0825 per Share for gross proceeds of $620,000 . The Shares were issued to HDD Investment Holdings Corp. (“HDD”), an insider of the Company through virtue of its ownership of 14,103,827, or 51% of the total issued and outstanding common shares of KMT.

The Shares are subject to a statutory four month and one day hold period, expiring January 26, 2020 . In addition, the TSX Venture Exchange may also require that the Shares be subject to escrow provisions as a result of the Company’s proposed acquisition of 50% of the issued and outstanding securities in the capital of QXCENTURY Ventures Ltd. (“QXCV”), an arm’s length party and its acquisition of HDD’s Lumuwan Forest Farm property (collectively, the “Transactions”).

The proceeds of the Bridge Financing will be used to fund the Company’s expenses associated with the closing of the Transactions. Shareholders are urged to refer to the Company’s press release dated August 27, 2019 for the complete details of the Transactions.

KMT is also pleased to announce that it has entered into a Joint Development Agreement with Pure Global Cannabis Inc. (“Pure Global”), an arm’s length party to the Company, on September 19, 2019 (the “Agreement”). Pursuant to the terms of the Agreement, Pure Global, through its wholly owned subsidiary, PureSinse Inc., will act as KMT’s management and development partner with respect to the processing, extraction, cultivation and manufacturing of hemp and hemp related products on the Company’s holdings in the province of Yunnan (the “Yunnan Project”). The Agreement is subject to exchange and other requisite approvals. In its role as a management and development partner, Pure Global will be responsible for the following:

(i)  providing the know-how and expertise to design and manage the development and deployment of the Yunnan Project;

(ii)  furnishing technical assistance pertaining to the production of industrial hemp and related products, including design and executing the industrial hemp production and extraction processes;

(iii)  managing the day-to-day operations and ongoing cultivation, extraction, production and manufacturing activities in connection with the Yunnan Project; and

(iv)  securing and maintaining a license to import the products into Canada .

In connection with the Agreement, Pure Global is entitled to receive 30% of the net profits derived from activities of the Yunnan Project. Pure Global has been granted, at a reasonable market price, the right of first refusal to (i) sell and distribute products manufactured in connection with the Yunnan Project (ii) buy all products manufactured in connection with the Yunnan Project for re-packaging, development, manufacturing, sales and distribution in Canada and (iii) buy raw materials produced in connection with the Yunnan Project.

www.kmthansacorp.com and the Company can be contacted by email at chan@kmthansacorp.com.