Burbank, CA, March 26, 2019 (GLOBE NEWSWIRE) -- Imaging3, Inc. (OTCQB:IGNG), (“Imaging3” or the “Company”), a development stage company focused on the introduction of disruptive technologies in the medical imaging industry, is further updating its prior announcement regarding the execution of a non-binding letter of intent (“LOI”) to be acquired in a reverse acquisition (the “Acquisition”) by Grapefruit Boulevard Investments, Inc. (‘GBI”) a privately held Los Angeles based cannabis company and simultaneously vend its imaging business into a privately held corporation which will be partially owned by post - Acquisition IGNG .

GBI is based in Westwood, Los Angeles, California. GBI holds California licenses to both manufacture and distribute cannabis products and is fully compliant with all applicable laws and regulations to operate such business. GBI has its extraction facility located in the 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 the center of Palm Springs. GBI obtained its California licenses in January of 2018 and commenced distribution of cannabis products in June of 2018. GBI’s goal is to become a seed to sale vertically integrated fully compliant cannabis and CBD product Company.

In November 2018, GBI acquired a well-respected infused edible brand called “Sugar Stoned” which manufactured cannabis infused gummy edibles, cookies and other related products over the last several years, and prior to the legalization of recreational cannabis in California, Sugar Stoned routinely sold its popular cannabis infused edibles to most of the medical cannabis retail dispensaries in Southern California, and, as a result, built a strong brand. After recreational cannabis was legalized in California in 2018, Sugar Stoned was effectively shut-out of the California cannabis market due to lack of requisite California licenses. In mid-2018, Sugar Stoned’s principal made GBI’s management aware of that state of affairs and after negotiations with GBI, on November 19, 2018 signed, an Employment Agreement with Sugar Stoned’s principal by which GBI simultaneously acquired all intellectual property rights to the Sugar Stoned brand through November 19, 2021 with provisions for mutually agreed upon extensions. As a result, GBI will, in effect, relaunch the popular Sugar Stoned brand. GBI anticipates that it will commence selling its refreshed line of Sugar Stoned cannabis infused edibles starting in the second week of April 2019.

GBI’s Chief Executive Officer, Bradley J. Yourist, stated “GBI is honored and excited to relaunch Sugar Stoned back into the legal and compliant cannabis edible market in California. We now understand the nuances of the growing edibles market and due to the experience our team has gained by our detailed examination of the Sugar Stoned edible manufacturing process in connection with the relaunch, we are well positioned to introduce other cannabis infused edible product lines in the near future. We are continuing our efforts to discover and acquire other ‘unlicensed brands’ that had a significant consumer following and brand identification prior to the legalization of recreational cannabis in California and found themselves in a situation similar to that of Sugar Stoned. We believe that GBI’s edible manufacturing division will be one of the key drivers in the Company’s growth and success in the coming years.”

John Hollister, IGNG’s current CEO stated, “The launch of GBI’s edible line is an example of the potential for its vertical integration strategy, as well as an additional significant revenue stream. It confirms that current IGNG management’s decision to enter into the GBI transaction and thereby afford current IGNG shareholders with the best available opportunity to have their IGNG holdings enhanced while, at the same time, limiting their risks, was a proper one. We look forward to expeditiously moving ahead with the GBI reverse acquisition and in connection with that have commenced drafting of a definitive share exchange agreement which we hope to execute by the end of the first week in April.”

According to Arcview Market Research, a Los Angeles based research and high net worth investors group, consumer spending on cannabis-based food and drink reached an estimated $1 billion in 2017 in the United States and Canada, and based on their estimates, the cannabis edibles category could expand to more than $4.1 billion in Canada and the United States by 2022. As such, cannabis-based food and drink presents an early opportunity for investment in a cannabis sub-sector that is brand-focused and growing quickly.

Potential investors in IGNG’s common shares are cautioned that there can be no assurances that the reverse acquisition of IGNG by GBI will ever be closed and that even if it is, there can be no assurance that the Company will thereafter be able to obtain the financing necessary to achieve its articulated goals and further that even if such financing is obtained that it will be sufficient for the Company to achieve its ultimate goals or to even remain in business. There can be no assurances that a line of cannabis infused edibles such as the Sugar Stoned products will ever be successfully marketed to the public.

About Imaging3, Inc.

Imaging3, Inc., founded in 1993, has developed a patented medical imaging technology, called the Dominion SmartScan™, that produces 3D X-ray images, effectively in real time. The SmartScan technology has the potential to allow healthcare professionals to perform diagnostic and therapeutic procedures more quickly and accurately, which may result in higher throughput for the clinicians and fewer safety risks for patients. Imaging3’s technology exposes patients to less harmful radiation than current equivalent imaging technologies such as CT scans. The company believes this will allow scans to be used in many settings where scanning is currently limited by concerns about radiation exposure. The technology also notably allows for reasonably convenient portability, easier installation and use-readiness, and a significantly reduced cost burden suitable for novel settings and for healthcare systems across varied global settings. Imaging3 plans to submit a 510(k) application to FDA during 2019 and or 2020 to gain marketing authorization for initial applications for the SmartScan technology. Visit the company’s website at http://www.imaging3.com for detailed information about the company’s technology. Grapefruit Boulevard Investments, Inc. is a cannabis product company which holds California licenses to manufacture and distribute cannabis products.To obtain further information on GBI’s California cannabis licenses and its business plan and operations, please visit GBI’s website at http://grapefruitblvd.com/packaging/

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 the Imaging3’s business, including, without limitation: the company may not ever obtain FDA approval for any of its devices; the company may not be able to secure the funds necessary to support its product development plans; and the company may not ever achieve the market success to sustain a profitable business. In addition, there are risks and uncertainties related to economic recession or terrorist actions, competition from much larger imaging companies, technological obsolescence, unexpected costs and delays, potential product liability claims, and many other factors. More detailed information about Imaging3 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 and its Quarterly Report on Form 10-Q. 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 Imaging3 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.