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Los Angeles/Desert Hot Springs, CA, Sept. 16, 2019 (GLOBE NEWSWIRE) -- Grapefruit Boulevard Investments, Inc. a Los Angeles based cannabis and CBD company and wholly owned subsidiary of Imaging3, Inc. (OTCQB: IGNG) (collectively “Grapefruit” or the “Company”) which has been licensed by the State of California to both manufacture and distribute cannabis products in California since January 2018 is announcing today that on August 22, 2019 it executed a formal Memorandum of Understanding (“MOU”) with a privately held manufacturer (the “Patent Holder”) of a novel patented and trademarked delivery system comprised of highly engineered microscopic particles that topically deliver a therapeutic payload to the user over an extended period of time. This system is the “patchless patch”. Grapefruit and the Patent Holder have agreed to negotiate expeditiously and in good faith to enter into a more formal license agreement as soon as possible. The MOU, however, states that until a formal license agreement is reached, the MOU is binding on the parties. The proposed license shall be exclusive for an initial term of 2.5 years and the territory initially covered is the States of California and Illinois. Grapefruit paid the Patent holder $5,000.00 and issued it 100,000 shares of IGNG common stock on execution of the MOU. When the parties reach a formal license agreement Grapefruit shall pay the Patent Holder $50,000.00 in two installments of $25,000.00 each and shall issue 1,000,000 shares of IGNG common stock to the Patent Holder. Grapefruit will have 8 months from the actual technology transfer to commercialize the first ‘patchless patches” and shall pay a decreasing royalty of between 4 and 7% of revenues to the Patent Holder depending on the level of revenue achieved.
Bradley J. Yourist, Grapefruit CEO stated, “The Patchless Patch is the future of THC, and Grapefruit will be the first to deliver it to legal Cannabis product users. We see it as a breakthrough and will do everything within our abilities to bring this novel cannabis delivery system to market expeditiously. Our Company’s mission has always been how to best enhance our customers’ health and wellness by leveraging novel, effective technologies and this unique cannabinoid delivery system will advance that mission. Grapefruit delivers yet another achievement on its inexorable advancement to legal cannabis and CBD industry leadership.”
Grapefruit is a wholly-owned subsidiary of Imaging3, Inc. Grapefruit’s corporate headquarters is in Westwood, Los Angeles, California. Grapefruit holds California permits and licenses to both manufacture and distribute cannabis products. Grapefruit’s cannabis and CBD oil extraction laboratory and distribution facilities are located in the industry recognized Coachillin’ Industrial Cultivation and Ancillary Canna-Business Park in Desert Hot Springs, located on the extension of North Canyon Rd., approximately 10 miles north of downtown Palm Springs. Grapefruit obtained its California cannabis licenses in January 2018 and commenced distribution of cannabis products thereafter. Grapefruit’s vision is to become a seed to sale, fully vertically integrated ethical and compliant cannabis and CBD product Company. To obtain further information on Grapefruit and its operations, please visit its website at https://grapefruitblvd.com/. To learn more about Grapefruit’s Sugar Stoned branded line of cannabis and CBD infused edibles, please visit us at https://sugarstoned.com/.
Safe Harbor Statement
Imaging3 cautions you that any statement included in this press release that is not a description of historical facts is a forward-looking statement. Many of these forward-looking statements contain the words "anticipate," "believe," "estimate," "may" "intend," "expect" and similar expressions. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the company and are subject to a number of risks and uncertainties inherent in Grapefruit’s business, including, without limitation: the company may not ever obtain additional funds necessary to support its business development and growth plans; and the company may not ever achieve the market success to reach or sustain a profitable business. In addition, there are risks and uncertainties related to economic recession or terrorist actions, competition from much larger cannabis companies, unexpected costs and delays, potential product liability claims, and many other factors. More detailed information about Grapefruit and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q for the period ended June 30, 2019 and its Registration Statement on Form S-1. Such documents may be read free of charge on the SEC’s website at www.sec.gov. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and Grapefruit undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.