MONTREAL, May 4, 2022 /CNW Telbec/ - Lumiera Health Inc. (TSXV: NHP) (the "Company" or "Lumiera "), a company specializing in the development and commercialization of natural health products, is pleased to announce it has filed for a new NPN application with Health Canada, as it prepares to extend its Awaye Pain Relief product line. The new product, Awaye Sport with menthol, will cater to pain sufferers looking for a cooling relief effect, which represents an additional consumer segment for the Awaye brand. This also represents the first innovation in Awaye's planned development pipeline.
"Awaye pain relief cream has been a tremendous success since its launch in April of last year, we're confident that Awaye Sport with menthol, with its cooling effect rather than the heating effect in the original formula, will be able to capture some significant market share in the category", says Carlos Ponce, CEO of Lumiera. "Assuming all is well with our filling, we look forward to launching Awaye Sport in Q4'22 online and with a retail launch Q1'23.,
All natural health products sold in Canada must have a product license issued by Health Canada before they can be commercialized. License applicants must provide detailed information about the product, including medicinal ingredients, potency, non-medicinal ingredients, and recommended use. Once Health Canada determines the product is safe and effective, it issues a Natural Product Number (NPN), which lets the public know the product has been reviewed and approved.
Additional Debt to Support Growth
The Company is also pleased to announce it has entered into an agreement with an important shareholder, Mr. Robert Brouillette through his holding company Fiducie La Maison Bleue, for an unsecured convertible loan (the "Loan") in the principal amount of $150,000. The proceeds from the Loan will be used for G&A and to continue accelerating growth. The Loan has a one-year term and bears interest at a rate of 12% per annum. This Loan is a vote of confidence from a long-standing and important shareholder who wants to help the Company to continue it's accelerated growth plan. Mr. Brouillette currently owns or controls, directly and indirectly, an aggregate of 29,177,058 common shares, representing 17.2% of the currently issued and outstanding common shares of Lumiera.
The loan is convertible into an aggregate of 3,000,000 Units (the "Units") at a price of $0.05 per Unit. At any time during the term of the Loan, the lender may elect to convert the principal amount and any accrued and unpaid interest of the loan into Units. Each Unit will consist of one common share in the capital of the Company (each, a "Common Share") and one common share purchase warrant (each, a "Warrant"), with each Warrant entitling the holder to acquire one additional Common Share, at an exercise price of $0.05 per share, for a period of one year.
Pursuant to Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the loan constitutes a "related party transaction" as a 10% shareholder of the Company is the lender and may convert the loan into the Units. The Company is relying on exemptions from the formal valuation and minority approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the Loan by the related party exceeds 25% of the Company's market capitalization (as determined under MI 61-101). The Loan was approved by all of the independent directors of the Company.
The new Loan is subject to certain standard closing conditions including, but not limited to, the receipt of all necessary approvals including the acceptance of the TSX Venture Exchange.
About Lumiera Health
Lumiera specializes in the development and commercialization of consumer products for the natural health industry. The Company sells herbal tonics and natural supplements through its Holizen Laboratories division, with a diverse portfolio including a line of innovative sleep aids. The Company is also commercializing a unique topical product line acting on the endocannabinoid system, without the use of cannabis, that provides an innovative solution for chronic pain and inflammation. A pioneer in the natural health innovation space, the Lumiera brand is rooted in the core values of science, nature and compassion. Our goal is to make people's lives better by developing natural health and wellness products that are effective, safe and trustworthy.
For more information visit: www.lumiera.ca.
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.
Forward-looking information
Certain statements contained in this press release constitute "forward-looking information" as such term is defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", "will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions indicate such "forward-looking information" as they relate to Lumiera. All statements other than statements of historical fact may be forward-looking information. Such statements reflect Lumiera' current views and intentions with respect to future events, and current information available to Lumiera, and are subject to certain risks, uncertainties and assumptions. Such risks and uncertainties include, among others, the risk factors included in Lumiera' annual management's discussion and analysis for the year ended November 30, 2021, which is available under the issuer's SEDAR profile at www.sedar.com. Material factors or assumptions were applied in providing forward-looking information. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. Should any factor affect Lumiera in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, Lumiera does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and Lumiera undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.
Related Links: www.lumiera.ca
SOURCE Lumiera Health Inc.
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Lumiera Health Inc., Simon Castonguay, Interim Chief Financial Officer, 514-880-7772, scastonguay@lumiera.ca