Mettrum enters the cannabis-based functional foods market

Mettrum Health Corp. (www.mettrum.com), a vertically integrated agri-pharmaceutical company focused on the research, development, production and distribution of medical cannabis products, is pleased to announce that it has entered into a term sheet to purchase Oilseed Works Inc. (which operates under the Hempola brand), providing for the company's strategic entry into the hemp cannabis-based functional foods market.

Subject to due diligence, final terms and conditions will be established pursuant to which the company will acquire all of the outstanding shares of Hempola, a Health Canada licensed producer and processor of cannabis-based products under the Industrial Hemp Regulations (Canada) issued pursuant to the Controlled Drugs and Substances Act (Canada), located in Barrie, Ontario. Under the terms of the agreement, Mettrum will purchase Hempola for $250,000 and 15% of Hempola's EBITDA annually, net of agreed upon expenses during the next 5 years.

As a pioneer in the industry, with a 20-year track record, Hempola is a vertically integrated producer and distributor of edible hemp products and hemp derivatives with long standing supply agreements in place with hemp growers and processors.

Hemp seed consists of approximately 33% protein and a high concentration and favourable ratio of essential fatty acids. Hemp boasts a high level of naturally occurring antioxidants and contains non-psychoactive cannabinoids such as cannabidiol (CBD) and cannabinol (CBN). Hemp also contains no known allergens and in most conditions can be grown without using pesticides.

Greg Herriott, co-founder of Hempola, has been a proponent of alternative sources for oils and grains since the early 1990s. Through the introduction and use of technology developed by Hempola in 1998, today Hempola products include hemp, flax, sunflower and other specialty oils in addition to an innovative Omegola 369 blend. Hempola also produces a variety of powders and flours, including hemp, flax, sunflower and a unique Omegola 369 blend. All Hempola oils, powders and flours are also Kosher certified.

'The proposed addition of Hempola to our product lines will further solidify our position in the natural health products markets,' said Michael Haines, Chief Executive Officer of Mettrum. 'We are very excited to have the opportunity to expand our operations and product offering into a complementary area of our existing business and look forward to completing the transaction and working together with our new colleagues at Hempola in further product development and growth.'

Completion of the acquisition is subject to negotiation and execution of definitive transaction documents (including accuracy of representations and warranties, compliance of covenants and satisfaction of customary conditions) as well as receipt of all requisite approvals and consents, including approval by the board of directors of the company.