Toronto, Ontario--(Newsfile Corp. - February 1, 2018) - The Jenex Corporation (TSXV: JEN) ("Jenex" or the "Company"), a progressive medical device technology company, today is pleased to announce it has entered into a non-binding letter of intent (the "LOI") with Quinsam Capital Corp. Inc. to collaborate on the development of a commercial trademarked product that will combine Jenex's thermal therapy technology with CBD or THC creams, lotions and/or oils (the "CBD/THC Thermal Device(s)"). Jenex and Quinsam propose to collaborate to develop a trademarked thermal therapy device or devices for pain relief, back pain and/or arthritis pain utilizing CBD or THC.
Quinsam has expertise in merchant banking based in Canada that is focused on cannabis-related investments. Quinsam's merchant banking business encompasses a range of activities including acquisitions, advisory services, lending activities and portfolio investments. Specifically, in the medical marijuana/cannabis industry, Quinsam has a wide range of experts at its disposal that can advise Jenex on developing THC/CBD products to be combined with Jenex's thermal therapy technology. In addition, Quinsam has experts that can be referred to that have established relationships with research and development/scientific experts specializing in the advancement of cannabis and/or CBD health care products and treatments.
The LOI contemplates the following terms to be finalized through a definitive agreement by March 15, 2018:
- Jenex will advance the research and development of the CBD/THC Thermal Device(s) for commercial resale including prototype, final design, quality management, intellectual property and trademark registration.
- Prior to or concurrent with the execution of the definitive agreement, Quinsam will advance $250,000 (the "Investment").
- Quinsam will be entitled to receive 5% royalty on the sale of all CBD/THC Thermal Device(s), in accordance with the terms of a definitive agreement to be negotiated by the parties on or before March 15, 2018.
- The Investment will not be repayable to Quinsam in the event that Quinsam receives a minimum aggregate amount of $250,000 in royalty payments ("Minimum Royalty") within three years of execution of the definitive agreement ("Minimum Royalty Deadline").
- If the Minimum Royalty is not paid to Quinsam by the Minimum Royalty Deadline, then on the next business day following Minimum Royalty Deadline, the Investment may be converted into shares of Jenex in compliance with TSXV policies and Quinsam's right to the Royalty may thereafter be reduced (the final terms of which will be negotiated by the parties and set out in the definitive agreement).
- Jenex's thermal therapy technology to be used in the development of the CBD/THC Thermal Device(s) and the CBD/THC Thermal Device(s) will be 100% owned by Jenex.
- The terms and conditions are subject to TSXV approval.
In exchange for the Investment Jenex will commit to obtaining all regulatory approvals with Health Canada and the FDA and other regulatory requirements in jurisdictions outside of Canada and the U.S. deemed necessary to market the CBD/THC Thermal Device(s). Jenex will utilize its ISO 13485 Quality Management System in any market where Jenex intends to market.
Rob Fia, CEO commented:
"We are pleased to be partnering with Quinsam to develop this unique pain relief device that incorporates CBD or THC with our thermal therapy. We believe the product developed from our R&D efforts as a result of the Investment and the advantage of Quinsam's extensive network of advisors in the Cannabis space will be rewarding for both companies. This is an exciting development for Jenex and we'll have more information to report as we work towards finalizing the definitive agreement with Quinsam."
Jenex intends to complete a private placement of units with pricing and terms of the units to be announced in the near future.
The private placement offering of units will be available directly from the Company or at the Stockhouse Deal Room www.stockhouse.com/dealroom and www.thejenexcorporation.com. The Stockhouse Deal Room ("Stockhouse") is an equity investment platform created specifically for public companies to access investors. Stockhouse has more than 1 million unique visitors a month and provides access to a large number of qualified and accredited investors.
Jenex is a progressive medical device technology company focused on providing consumers with quality medical devices that address their dermatological needs. Clear and healthy skin for all is at the core of Jenex's philosophy as is the belief that such outcomes should not be a privilege for only those who can afford costly procedures and treatments. The Company's breakthrough proprietary technology delivers effective, non-invasive and pain free skin care.
Jenex received a Class II medical device status from the FDA for its platform technology that is indicated for the relief of the pain, itch, and inflammation from over 20,000 different insect stings and bites, (including bees, wasps, hornets, mosquitoes, black flies and jellyfish). Jenex received approval for the above claims from FDA (United States) in 1997.
The Jenex Corporation trades on the (TSXV: JEN). For more information visit: www.thejenexcorporation.com or www.therozap.com.
For further information please contact:
The Jenex Corporation
ABOUT QUINSAM CAPITAL CORP.
Quinsam is a merchant bank based in Canada that is focusing on cannabis-related investments. Our merchant banking business may encompass a range of activities including acquisitions, advisory services, lending activities and portfolio investments. Quinsam invests its capital for its own account in assets, companies or projects which we believe are undervalued and where we see a viable plan for unlocking such value. We do not invest on behalf of any third party and we do not offer investment advice.
Generally, Quinsam does not believe that individual investments are material reportable events. Quinsam chooses to announce certain investments once the company is certain that it has finished buying its position because the company feels that this information helps Quinsam's investors understand its investment decision making process. Generally, Quinsam does not announce the sale of investments.
For further information please contact:
Roger Dent, CEO
FORWARD LOOKING STATEMENTS
Certain statements in this news release constitute "forward-looking" statements. These statements relate to future events or the Company's future performance and include the proposed definitive agreement with Quinsam, the proposed development of CBD/THC Thermal Device(s), and the proposed private placement financing, all as described in the news release. All such statements involve substantial known and unknown risks, uncertainties and other factors which may cause the actual results to vary from those expressed or implied by such forward-looking statements. In addition to other risks, the Company may not complete the definitive agreement, develop any CBD/THC Thermal Device(s) or close the proposed financing as described in this news release or on the timelines described. Forward-looking statements involve significant risks and uncertainties, they should not be read as guarantees of future performance or results, and they will not necessarily be accurate indications of whether or not such results will be achieved. Actual results could differ materially from those anticipated due to a number of factors and risks. Although the forward-looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions on the date of this news release, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof and the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
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