2018-02-01 10:39 ET - News Release

Also News Release (C-QCA) Quinsam Capital Corp (2)



Mr. Rob Fia of Jenex reports

JENEX ANNOUNCES NON-BINDING LETTER OF INTENT WITH QUINSAM CAPITAL CORP. FOR $250,000 INVESTMENT TO DEVELOP CBD AND THC RELATED THERMAL THERAPY TECHNOLOGY FOR PAIN RELIEF AND OTHER PAIN RELATED APPLICATIONS

The Jenex Corp. has entered into a non-binding letter of intent with Quinsam Capital Corp. to collaborate on the development of a commercial trademarked product that will combine Jenex's thermal therapy technology with cannabidiol (CBD) or tetrahydrocannabinol (THC) creams, lotions and/or oils. Jenex and Quinsam propose to collaborate to develop a trademarked thermal therapy device or devices for pain relief, back pain and/or arthritis pain utilizing CBD or THC.

Quinsam has expertise in merchant banking based in Canada that is focused on cannabis-related investments. Quinsam's merchant banking business encompasses a range of activities, including acquisitions, advisory services, lending activities and portfolio investments. Specifically, in the medical marijuana/cannabis industry, Quinsam has a wide range of experts at its disposal that can advise Jenex on developing THC/CBD products to be combined with Jenex's thermal therapy technology. In addition, Quinsam has experts that can be referred to that have established relationships with research and development/scientific experts specializing in the advancement of cannabis and/or CBD health care products and treatments.

The letter of intent contemplates the following terms to be finalized through a definitive agreement by March 15, 2018:

Jenex will advance the research and development of the CBD/THC thermal device(s) for commercial resale, including prototype, final design, quality management, intellectual property and trademark registration.

Prior to or concurrent with the execution of the definitive agreement, Quinsam will advance $250,000.

Quinsam will be entitled to receive a 5-per-cent royalty on the sale of all CBD/THC thermal device(s), in accordance with the terms of a definitive agreement to be negotiated by the parties on or before March 15, 2018.

The investment will not be repayable to Quinsam in the event that Quinsam receives a minimum aggregate amount of $250,000 in royalty payments within three years of execution of the definitive agreement.

If the minimum royalty is not paid to Quinsam by the minimum royalty deadline, then on the next business day following minimum royalty deadline, the investment may be converted into shares of Jenex in compliance with TSX-V policies and Quinsam's right to the royalty may thereafter be reduced (the final terms of which will be negotiated by the parties and set out in the definitive agreement).

Jenex's thermal therapy technology is to be used in the development of the CBD/THC thermal device(s) and the CBD/THC thermal device(s) will be 100 per cent owned by Jenex.

The terms and conditions are subject to TSX-V approval.

In exchange for the investment, Jenex will commit to obtaining all regulatory approvals with Health Canada and the U.S. Food and Drug Administration and other regulatory requirements in jurisdictions outside of Canada and the United States deemed necessary to market the CBD/THC thermal device(s). Jenex will utilize its ISO 13485 quality management system in any market where Jenex intends to market.

Rob Fia, chief executive officer, commented: "We are pleased to be partnering with Quinsam to develop this unique pain relief device that incorporates CBD or THC with our thermal therapy. We believe the product developed from our R&D (research and development) efforts as a result of the investment and the advantage of Quinsam's extensive network of advisers in the cannabis space will be rewarding for both companies. This is an exciting development for Jenex, and we'll have more information to report as we work towards finalizing the definitive agreement with Quinsam."

Jenex intends to complete a private placement of units, with pricing and terms of the units to be announced in the near future.

The private placement offering of units will be available directly from the company or at the Stockhouse Deal Room website and the Jenex website. Stockhouse Deal Room is an equity investment platform created specifically for public companies to access investors. Stockhouse has more than one million unique visitors a month and provides access to a large number of qualified and accredited investors.

About The Jenex Corp.

Jenex is a progressive medical device technology company focused on providing consumers with quality medical devices that address their dermatological needs. Clear and healthy skin for all is at the core of Jenex's philosophy as is the belief that such outcomes should not be a privilege for only those who can afford costly procedures and treatments. The company's breakthrough proprietary technology delivers effective, non-invasive and pain-free skin care.

Jenex received a Class II medical device status from the U.S. Food and Drug Administration for its platform technology that is indicated for the relief of the pain, itch and inflammation from over 20,000 different insect stings and bites (including bees, wasps, hornets, mosquitoes, black flies and jellyfish).

About Quinsam Capital Corp.

Quinsam is a merchant bank based in Canada that is focusing on cannabis-related investments. Its merchant banking business may encompass a range of activities, including acquisitions, advisory services, lending activities and portfolio investments. Quinsam invests its capital for its own account in assets, companies or projects which it believes are undervalued and where it sees a viable plan for unlocking such value. Quinsam does not invest on behalf of any third party and it does not offer investment advice.

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