Reverse takeover with Socati Corp. creates a vertically
integrated global CBD producer poised to become a leading supplier
to top consumer brands
TORONTO, June 4, 2020 /CNW/ - Globalive Technology Inc.
(TSX-V: LIVE) (the "Company"), a technology company based in
Toronto, Ontario, is pleased to
provide details relating to its previously announced transformative
merger with Socati Corp. ("Socati"), a leading manufacturer and
processor of CBD and other cannabinoid-based products, by way of a
reverse takeover (the "Transaction"). The combination will create a
vertically integrated global wellness company with a significant
opportunity to capitalize on the rapidly evolving and consolidating
CBD marketplace. More information regarding the Transaction can be
found in the Company's SEDAR filing at www.sedar.com.
Socati Overview
Socati is a vertically integrated manufacturer and marketer of
premium-quality and efficacious cannabinoid ingredients and
consumer products. The company focuses on the manufacture of CBD,
minor cannabinoids such as CBG and CBN, and other functional
ingredients and finished wellness products. Socati possesses
extensive intellectual property and proprietary technology in
cannabinoid extraction and separation, as well as best-in-class
in-house analytical capabilities.
Significantly, Socati is the only commercial scale producer of
'USDA Organic' certified cannabinoid ingredients with
non-detectable levels of THC, the psychoactive component of
hemp. This creates compelling brand value and a first-mover
advantage for Socati as consumers shift to organic CBD products.
The USDA Organic Seal is the gold standard for supply chain
integrity in the United States,
with consumer demand for organic products driving significantly
higher growth rates and price premiums relative to their nonorganic
counterparts.
Socati's vertical integration across ingredients, product
manufacturing, branded products, and distribution empowers the
company to drive profit across the value chain. The company
operates across the United States,
a foundational market for Socati that is projected to reach
US$24 billion by 2025, according to
investment banking firm Jeffries. The company operates five
greenhouses and three full-scale genetic laboratories in
Oregon and a 22,000 square-foot
manufacturing facility in Montana.
Socati also has activities in both Europe, whose CBD market is projected by
Canaccord Genuity to reach €3.8 billion by 2022, and Asia, with the Chinese CBD market alone
projected to reach US$15 billion
within five years, according to Grand View Research. This vertical
integration and diverse geographic footprint offers distinct
advantages over comparable CBD producers, providing a platform
uniquely positioned to capitalize on consolidation opportunities as
they arise.
"Demand for THC-free CBD products is growing exponentially
around the world," said Lorne Abony,
Socati's Chairman. "Socati's unique ability to deliver consistent
USDA Certified cannabinoid ingredients and finished products that
meet industry-leading quality standards positions our company to
become a leading supplier to top consumer brands and retailers
incorporating CBD into their products and stores across the
globe."
Management Expertise
Socati is led by a world-class management team and Board of
Directors with demonstrated expertise in developing international
brands and cannabinoid products.
Management Team
Josh Epstein, CEO and
Co-Founder
Epstein previously served as President &
Chief Operating Officer of global cannabis producer Nuuvera, which
was subsequently purchased by industry leader Aphria for
C$826 million. Epstein was previously
a partner at FastForward Innovations, an investment firm focused on
emerging technologies.
Lorne Abony, Chairman and
Co-Founder
Abony is an experienced entrepreneur and
investment professional. He co-founded and led Nuuvera, overseeing
the company's international production and distribution expansion
into markets such as Germany,
Israel and Italy. Abony previously co-founded FUN
Technologies and facilitated its growth into the world's largest
provider of online casual games and fantasy sports. He sold the
company for C$484 million in
2006.
Brian Goldberg,
CFO
Goldberg was formerly Chief Financial Officer, Chief
Strategy Officer & Executive Vice President of Corporate
Development of Amplify Snack Brands, Inc. from company formation in
2014 through successful exit to The Hershey Company in 2018 for
~$1.7B+. Goldberg was previously Chief Financial Officer at
Badlands Power Fuels, LLC through its successful exit to Heckmann
Corporation in 2012 and served as the Chief Financial Officer and
Chief Operating Officer at Sweet Leaf Tea Company through its
successful exit to Nestle in 2011.
Brad Kelley, COO
Kelley
joined Socati with more than 25 years of executive and operational
experience in flavors, ingredients, and chemicals. Over the last
eleven years, as V.P. Operations, Chief Operations Officer, and
President, his leadership was instrumental in the rapid growth of
Mane's U.S. flavor division. Before joining Mane, he worked for
Givaudan in the U.S. and in Switzerland, where he held various operations
leadership positions. He started his career with Monsanto in
Pensacola, Florida.
Board of Directors
Socati's Board of Directors includes Co-Founder & CEO
Josh Epstein; Co-Founder &
Chairman Lorne Abony; Eric Ball, a technology professional and
investor who served as a senior finance executive at Oracle for
more than 10 years; and Edward
Lonergan, a veteran consumer packaged goods and B2B industry
executive with more than 35 years in senior roles at various
companies including Procter & Gamble, Gillette Europe, and
Chiquita Brands International.
About Socati
Socati is a leading processor of USDA Organic certified
hemp-based products, including broad spectrum extracts with
non-detectable THC. The company provides a top-quality and
consistent product for a market projected to reach $24 billion by 2025. Leveraging investments in
new technologies, Socati engages in large-scale manufacturing and
has logistics in place to process increasing amounts of hemp
biomass to meet demand. With the ability to manufacture USDA
Certified hemp extracts at scale, Socati is built to serve the
needs of large, international CPG companies that are seeking high
quality raw materials. To learn more about Socati, visit
www.socati.com. Watch this VIDEO for details on Socati's high
quality CBD ingredients.
For media inquiries:
Rob
Moysey
Communications Manager, Globalive
Media@globalivetech.com
Josh Stanbury
SJS Public Relations
416-628-7441
josh@sjspr.co
For investor inquiries:
Simon
Lockie
Chief Corporate Officer
1-647-977-2727
InvestorRelations@globalivetech.com
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This news release contains forward-looking statements
relating to the Transaction, the growth in demand for THC free CBD
and growth for Socati and other statements that are not historical
facts. Such forward-looking statements are often identified by
terms such as "possible", "if", "would", "will", "is incurring",
"subject to", "intends", "estimates", "contemplated", "following",
"continuing to", "anticipates", "anticipated", "poised to become",
"projected" and similar expressions. All statements, other than
statements of historical fact included in this release, including
those noted above, are forward-looking statements that involve
risks and uncertainties. There can be no assurance that such
statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to
differ materially from the Company's expectations include changes
to the CBD market; changes to Socati or the Company's business
focus, strategic plan or capital requirements; changes in market,
industry and regulatory conditions for Socati or the Company;
unexpected operating gains or losses in the Socati or the Company;
a breakdown in the Company's relationship with Socati; the
inability to satisfy the conditions precedent to complete the
Transaction, or to complete the Transaction on the terms and
conditions currently contemplated, including shareholder and TSX-V
approvals; other parties seeking to acquire an interest in Socati
or the Company; difficulties or delays in combining the businesses
of Socati and the Company; the availability of any necessary or
desired financing in connection with the merger; the novel
coronavirus pandemic impacting on the proposed transaction or the
businesses of the Company and Socati; and other risks as set out in
the Company's Filing Statement available on its SEDAR page at
www.sedar.com.
The reader is cautioned that assumptions used in the
preparation of any forward-looking information may prove to be
incorrect. Events or circumstances may cause actual results to
differ materially from those predicted as a result of numerous
known and unknown risks, uncertainties, and other factors, many of
which are beyond the control of the Company. The Company cannot
guarantee that any of the forward-looking statements contained in
this press release will occur as disclosed herein or at all. The
reader is cautioned not to place undue reliance on any
forward-looking information.
Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement. The
forward-looking statements contained in this news release are made
as of the date of this news release and the Company will only
update or revise publicly the included forward-looking statements
as expressly required by Canadian securities law.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities of the
Company, Socati or the resulting issuer in either Canada or the United States. The
securities of such entities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "US Securities Act"), or any state securities laws and
may not be offered or sold within the
United States or to U.S. Persons unless registered under the
US Securities Act and applicable state securities laws or an
exemption from such registration is available.
Neither the Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the Exchange) accepts
responsibility for the adequacy or accuracy of this
release.
SOURCE Globalive Technology
