ATLANTA, GA / ACCESSWIRE / July 17, 2014 / Dutch Gold Resources, Inc. (DGRI.OTC) (the “Company”) (dutchgoldinc.com) today announced that it has licensed the rights its THC Potency Test Kit and Hemp Tea drinks to Abba Medix Corporation (ABBA) of Richmond Hill, ON Canada.
Under the terms of the agreement, Abba Medix has been licensed to distribute both products in Canada and certain other countries. ABBA has paid a license fee to the Company, which under certain conditions, DGRI may be convert into equity in ABBA.
Abba Medix (www.abbamedix.com/) was founded in 2013 to capitalize on the dramatically changing rules governing medical marijuana production in Canada. On April 1, 2014, Health Canada eliminated the ability of the approximately 37,000 Canadians currently licensed to grow and possess medical marijuana for medicinal use on their own. Patients must now purchase product from commercially producing providers licensed by Health Canada. Although patients will still need appropriate documentation signed by a health care practitioner and must register with one of the commercial producers, the registered producer will now file the application on behalf of the patient to Health Canada. Abba Medix has made an application to Health Canada to become a commercial producer. ABBA intends to broaden its product offering including these products to provide a full menu of complementary product and service offerings in this sector –also ABBA has the experience and expertise in the beverage market through principal shareholders and affiliates and plan to distribute and leverage this product offering through established distribution channels.
Under the terms of the agreement, Abba has agreed to license fee based on a number of parameters; a portion of which has already been paid, to license its proprietary technologies where they will act as the Company’s exclusive marketing agent in Canada and certain other countries. Dutch Gold Resources may elect to convert part of the outstanding license fee into equity in Abba Medix, in the event that the ABBA’s shares become publicly traded.
“We are pleased that we have found a partner in Abba Medix. Their unique understanding of the Canadian MMJ market complements our initial marketing efforts in the United States. Their principals have an established successful track record of building businesses. Importantly, they have a firsthand knowledge of specialty health care delivery which we believe will help to accelerate the build out of the distribution network for the THC Potency Test Kit”, said Daniel Hollis, CEO of Dutch Gold Resources.
Hollis continued, “In addition to their experience in specialty healthcare delivery, Abba Medix management also posses expertise in the distribution of beverages in Canada which is equally of benefit towards building a market for our hemp flavored teas. While we are pleased that we have been able to create near term license fees resulting in immediate revenue to the company, we are confident that we have found the right partners for the Canadian market, which gives us the opportunity to continue to generate shareholder value for both Dutch Gold Resources and Abba Medix.”
An 8K covering the details of this transaction will be filed with the Securities and Exchange Commission.