Marapharm has paid for and closed the transaction which was announced April 17, 2017, shown below for reference. The transaction was completed by Marapharm DHS California, LLC, a wholly owned subsidiary of Marapharm.
APRIL 17, 2017 NEWS RELEASE: Marapharm announces it has entered into an agreement to purchase property located in Desert Hot Springs, CA for $1.3 million USD. The agreement is without contingencies and closes May 31, 2017. The 1.22 acres is zoned industrial for cannabis cultivation and is an approved CUP of 29,193 square feet for cultivation including 2,036 square feet of processing.
Marapharm engaged Kurt Keating to do the evaluation of this project. Kurt won 2 High Times Cannabis Cups in 2014 while cultivating medical cannabis and he has been consulting, evaluating and growing cannabis for several years. The market price for this type of marijuana at present is approximately $1000 wholesale per pound in California. The evaluation for the main floor is 5000 pounds per year. The upper floor is for 15,000 pounds per year. The additional value of the extractions enables the facility to potentially have $17 million in gross sales with $9 million net for the first year. This evaluation will be part of the financial package for a loan facility for the purchase of the property and for the build-out of the property which is expected in short order.
“The permit processing for marijuana is a lengthy procedure. This acquisition is well under way in the process. Items which are completed include the required orientation meeting, development agreement, conditional use permit, preliminary review (street improvements, water retention and capacity, utilities, setbacks, grading, fire suppression, fences, walls, etc.), agreement submissions, application preparations and submissions, architecture and landscape review, environmental submissions and review, city attorney review, planning commission approvals, city council and several other steps. We have all of the trades, architect, engineers, contractors and consultants in place and we are moving ahead at a fast pace.” Linda Sampson, Marapharm CEO.
ABOUT MARAPHARM VENTURES INC.
Marapharm has 300,000 square feet of medical marijuana licenses for its land and facilities in WA and NV. About three years ago, Marapharm applied in Canada to Health Canada for a MMPR (production and sales) license and has passed the necessary security clearances. The application is currently in the in-depth screening process. In September 2016, Health Canada contacted Marapharm with a provision to amend its application to allow for the new regulations, ACMPR. Marapharm owns 15 million shares and warrants of Veritas Pharma Inc., a public company.
Additional information on the operations or financial results of Marapharm are included in reports on file with applicable securities regulatory authorities and may be accessed through the CSE website (www.thecse.com), the OTC website (www.otcmarkets.com), and the SEDAR website (www.sedar.com) under the profile for Marapharm Ventures Inc.
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FORWARD – LOOKING STATEMENTS:
Certain statements contained in this news release constitute forward looking statements. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, ‘may”, “will”, “project”, “should”, ‘believe”, and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements are based on reasonable assumption but no assurance can be given that these expectations will prove to be correct and the forward-looking statements included in this news release should not be unduly relied upon.