VANCOUVER, British Columbia, Sept. 06, 2018 (GLOBE NEWSWIRE) -- Pistol Bay Mining Inc. (TSX-V - PST; Frankfurt - 0QSA, OTC/Pink Sheet symbol SLTFF) (“Pistol Bay” or the “Company’) would like to take this opportunity to clarify its news release issued September 5, 2018.
At the present time, the Company has not entered into an agreement to market the nutraceutical products referenced in the news release issued yesterday. The Company has entered into an exclusivity agreement with a private Ontario company (“Privco”), executed by the parties on September 4, 2018, that allows Pistol Bay to undertake due diligence on the products, the intellectual property surrounding the products and the market opportunities for both the foundational product, as well as new product applications containing cannabinoids. The agreement restricts Privco from negotiating for the sale or licensing of the products to third parties for a period of 60 days. The parties are at arm’s length. No business or financial terms have been agreed to at this point and there can be no assurance that Pistol Bay will decide to proceed with a transaction following completion of due diligence, or that the parties will agree on financial or business terms. If such an agreement is entered into, such transaction would likely constitute a change of business pursuant to the policies of the TSX Venture Exchange. In such case trading will be halted pending the approval of such transaction by the TSX Venture Exchange.
The Company wishes to clarify certain information relating to the products which are the subject matter of the current due diligence being undertaken. Privco has advised that it has invested $5.5 million to date in the development, and clinical testing of its foundational product, which has sold commercially since 1991. This foundational product, primarily sold through multi-level marketing companies, is mainly a combination of botanicals that contain multiple molecules that contribute to delivering therapeutic effects, including stress reduction and anti-aging. The foundational product holds an NPN (Natural Health Number) which was issued by Health Canada and Privco advises that retail sales of the product by third party licensees has totaled approximately US$500 million to date.
Privco has developed a product that combines its foundational product with CBD molecules. CBD is a plant-based molecule that is getting a lot of attention recently for its many benefits including treating pain, anxiety, inflammation, and epilepsy. Privco believes that CBD when combined with its foundational product could enhance the efficacy of the CBD.
Privco is also developing a second product, a full spectrum soft gel, which will contain solely CBD. Neither of these products have been made available for commercial sale and remain subject to further development and clinical trials.
The Company also wishes to clarify that the statement from the September 5, 2018 news release, “We are unique worldwide in that our adaptogenic blend increases the bioavailability and bioefficacy of the cannabinoids significantly”, was meant to reference a statement put forward by Privco in their current marketing materials. At present, Pistol Bay undertakes no activity in this line of business.
Investors are cautioned that until such time as a definitive transaction agreement is entered into, and a management information circular or filing statement is prepared in connection with such a transaction, any information released or received with respect to the potential transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Pistol Bay should be considered highly speculative.
The TSX Venture Exchange has in no way passed upon the merits of any potential transaction and has neither approved or disapproved the contents of this news release.
About Pistol Bay Mining Inc.
Pistol Bay Mining Inc. is a diversified Junior Canadian Mineral Exploration Company with a focus on zinc and base metal properties in North America. The company is also actively pursuing the right opportunity in the Cannabis space looking to enhance shareholders' value. For additional information please visit the Company website at www.pistolbaymininginc.com or contact Charles Desjardins at email@example.com.
On Behalf of the Board of Directors
PISTOL BAY MINING INC.
President and Director
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 release.
This report contains forward looking statements. Resource estimates, unless specifically noted, are considered speculative. Any and all other resource or reserve estimates are historical in nature and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.