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8-K - CURENT REPORT - GILLA INC. | glla_8k.htm |
Exhibit 99.1
GILLA SIGNS LOI TO ENTER CANADIAN CANNABIS MARKET
TORONTO, CANADA – (July 12, 2017) - Gilla Inc.
(“Gilla” or the
“Company”) (OTCQB: GLLA), the fast-growing designer,
marketer and manufacturer of E-liquid for vaporizers and developer
of cannabis concentrate products, today announced that the
Company’s Toronto-based subsidiary, Gilla Enterprises Inc.,
has entered into a non-binding letter of intent (the
“LOI”) with one of Canada’s premier Licensed
Producers (the “LP”) under the Access to Cannabis for Medical
Purposes Regulations (Canada)
(“ACMPR”). The LOI calls for Gilla to collaborate with
the LP to provide a cannabis vapor solution for distribution to the
LP’s extensive client base in Canada. The proposed device and
packaging will be submitted to Health Canada to obtain any
necessary approvals post signing of a definitive
agreement.
Under the terms of the LOI, the Company and the LP would enter into
a definitive agreement to provide both private-label and branded
cannabis vapor solutions (the “Licensed Products”) for
the LP to produce and distribute in Canada through the LP’s
authorized distribution channels. The Company will work with the LP
to develop full scale production-level standard operating
procedures that will be used to manufacture the Licensed Products
to comply with Health Canada’s ACMPR requirements; including
device selection, packaging and other regulated criteria. As
consideration for the license and rights to be granted under the
definitive agreement, the Company would receive a ten percent (10%)
royalty on gross revenues generated from sales of the private-label
products. Furthermore, royalties generated from the sales of Gilla
branded products will be determined on a case-by-case
basis.
“This is a great leap forward for our cannabis concentrate
division,” stated Mr. Graham Simmonds, Chair and CEO of
Gilla. He added, “We have put a tremendous amount of work
into the development of these products which will receive a higher
level of scrutiny than most cannabis vape products have endured to
date. Working with a market-leading partner in both quality and
overall industry sales provides Gilla with a powerful platform to
demonstrate the competitive edge of our proprietary cannabis
products and ability to grow our footprint throughout Canada. We
will also continue to pursue additional licensing agreements to
broaden our market reach into additional jurisdictions as we see
fit.”
About Gilla Inc.
Gilla Inc. manufactures, markets and distributes E-liquid for use
in vaporizers and develops turn-key vapor and cannabis concentrate
solutions for high terpene vape oils, pure crystalline, high
performance vape pens and other targeted products. Gilla aims to be
a global leader in delivering the most efficient and effective
vaping solutions for nicotine and cannabis related products. The
Company’s multi-jurisdictional, broad portfolio approach
services both the nicotine and cannabis markets with high quality
products that deliver a consistent and reliable user experience.
Gilla’s proprietary product portfolio includes the following
brands: Coil Glaze™, Siren, The Drip Factory, Craft
Vapes™, Craft Clouds, Surf Sauce, Vinto Vape, VaporLiq, Vape
Warriors, Vapor’s Dozen, Miss Pennysworth’s Elixirs,
The Mad Alchemist™, Replicant, Enriched Vapor and Crown
E-liquid™.
Forward-looking Statements
Note: This press release contains “forward looking
statements” as defined in the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are based on
currently available competitive, financial and economic data and
management’s views and assumptions regarding future events.
Such forward-looking statements are inherently uncertain. Gilla
Inc. cannot provide assurances that the matters described in this
press release will be successfully completed or that the company
will realize the anticipated benefits of any transaction. Actual
results may differ materially from those projected as a result of
certain risks and uncertainties, including but not limited to:
global economic and market conditions; the war on terrorism and the
potential for war or other hostilities in other parts of the world;
the availability of financing and lines of credit; successful
integration of acquired or merged businesses; changes in interest
rates; management’s ability to forecast revenues and control
expenses, especially on a quarterly basis; unexpected decline in
revenues without a corresponding and timely slowdown in expense
growth; the company’s ability to retain key management and
employees; intense competition and the company’s ability to
meet demand at competitive prices and to continue to introduce new
products and new versions of existing products that keep pace with
technological developments, satisfy increasingly sophisticated
customer requirements and achieve market acceptance; relationships
with significant suppliers and customers; as well as other risks
and uncertainties, including but not limited to those detailed from
time to time in Gilla Inc. SEC filings. Gilla Inc. undertakes no
obligation to update information contained in this release. For
further information regarding risks and uncertainties associated
with Gilla Inc.’s business, please refer to the risks and
uncertainties detailed from time to time in Gilla Inc.’s SEC
filings.
For
more information, please visit gilla.com, or
contact:
Mr. Graham Simmonds
Chair and CEO
T: 1
(416) 843-2881
E:
graham.simmonds@gilla.com