February 25, 2016 CSE – LLP
Vancouver, B.C. – LeenLife Pharma International Inc. (the “Company”) is pleased to announce that it has now completed the acquisition of a 90% interest in LeenLife Pharma S.A., a private Polish company, which has developed a process for the isolation of Omega 3 fatty acids from flax seeds. In its news release dated December 2, 2015, the Company announced that it had received final approval from the Canadian Securities Exchange (the “CSE”) for the acquisition and proceeded with a change of its name to LeenLife Pharma International Inc. in anticipation of closing the transaction. Due to unforeseen issues with the vendor and the process for completing the share transfer in Poland, which required attendance of signing officers before a notary public in Poland, to have documents properly sworn for filing, the Company was not able to complete the transaction until February 18, 2016.
At closing, the Company provided proof of the issuance of the 12,232,788 shares of the Company (the “Purchase Shares”) to the vendors and received 90 shares in LeenLife Pharma S.A., being 90% of the issued shares. The Purchase Shares are subject to a hold period restricting them from trading until June 19, 2016 as well as being subject to the provisions of a regulatory escrow agreement to be administered by the Company’s transfer agent, that provides for the release from escrow of 10% of the Purchase Shares at closing, with the remaining 90% being released over three years at the rate of 15% every six months. The purchase consideration payable by the Company also includes a cash payment in the order of $563,000 due on or before May 31, 2016, which date was mutually agreed between the parties at closing.
A finder’s fee of up to 3% of the equity portion of the purchase price will be paid by the Company in shares in its capital in connection with the transaction.
Stan Lis, CEO and a director of the Company, states: “With the transaction closed, the Company can proceed to carry business of the sale and distribution of pure and crystalline omega-3 health products and food additives.”
For more information, please contact:
Stan Lis, CEO
Tel: 604 764-0518
This News release is also available from HERE as a PDF file.