VANCOUVER, BC / November 4, 2020 / Chemesis International Inc. (CSE:CSI) (OTCQB:CADMF) (FRA:CWAA) (the “Company” or “Chemesis”), the Company announces that the Department of Health of Puerto Rico (“Department of Health”) has not renewed licenses held by GSRX Industries Inc. (“GSRX”) which are necessary for the operation of its cannabis dispensaries in Puerto Rico, and that, as a result, GSRX’s cannabis dispensaries are no longer operating. The Company is uncertain at this point as to whether or when such licenses will be renewed.
At present, the operations of the Company’s subsidiary, Natural Ventures PR, LLC, are continuing in the ordinary course.
The Company notes, further to its news release dated September 28, 2020, that the Department of Health is engaged in a review of certain filings made by the Company’s subsidiary, GSRX Industries Inc. (“GSRX”) with the Department of Health, which such review is in addition to the ongoing administrative review by the Department of Health previously announced by the Company (see news releases dated August 7, 2020 and January 17, 2020).
The Company notes that the multiple regulatory and administrative reviews in Puerto Rico, along with corresponding litigation (see news releases dated December 9, 2019, January 17, 2020 and August 7, 2020), have severely drained the Company’s financial resources and management time, resulting in significant operational and planning difficulties. The Company further notes that it is actively working to find an appropriate solution, with all options being on the table.
On Behalf of The Board of Directors
About Chemesis International Inc.
Chemesis focuses on prudent capital allocations to ensure it maintains second mover advantage as it enters new markets with a proven lift & shift consumer focused model deployed with the objective a being #1 or a strong #2 in every market in which we compete. Chemesis leverages a portfolio of strong consumer brands to recruit, retain, & grow share of wallet with a proven consumer loyalty platform. Chemesis is focused on scalable growth within our business operations through disciplined investment of both insource and outsourced levers to maximize use of capital. This includes our retail strategy of coalescing dispensary and alternative route to market.
Chemesis and its team are committed to building a strong unattended and attended retail model for the cannabis market across the United States and Puerto Rico. Chemesis’ retail brand, Green Spirit Rx, will continue to provide consumers with industry-leading technology, the most sought-after products and continued education.
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Forward-Looking Information: This news release contains “forward-looking information” within the meaning of applicable securities laws relating to statements regarding the ability of the Company to continue to operate under the Licenses, and the ability of the Company to engage in any administrative process with the Department of Health. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance and developments to differ materially from those contemplated by these statements including, among other things, the risks that the Company will not be able to maintain or continue licensed activities under the Licences as currently being conducted, or at all, and that the Company’s products and plans will vary significantly as a result, and that the Company will not be permitted to engage with the Department of Health through an administrative or other process to address the concerns raised. Except as required by law, the Company expressly disclaims any obligation and does not intend to update any forward-looking statements or forward-looking information in this news release. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct and makes no reference to profitability based on sales reported. The statements in this news release are made as of the date of this release.
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