Marapharm is pleased to announce that it has received an independent calculation/valuation report with respect to an appraisal of assets conducted in December of 2016, for corporate planning purposes and in preparation for construction of the facility and subsequent production (cultivation) and processing operations. RWE Growth Partners Inc. (“RWE”) was engaged to assess the market value of the 7-acre property and associated 3 cannabis licenses controlled by Marapharm in Las Vegas, Nevada.
The valuation of the property and licenses, prior to the commencement of construction and in advance of production, was $3,500,000 USD (~$4,700,000 CDN). Since the preparation of this report, construction has begun and there has been an additional $1 million USD (~$1,300,000 CDN), invested in applications, legal fees, wages, wet and dry utility deposits, structural components, and permit bonds. “Based upon this report and not including the subsequent costs incurred to move the project forward, we calculate that we have more than $4.5 million USD (~$6 million CDN) of realizable equity in this project at the present time, “states Linda Sampson, Marapharm CEO.
The RWE report provides the following valuation and methodology:
Considering FOUR criteria for the highest and best use, namely Physical Possibility. Legal Considering FOUR criteria for the highest and best use, namely Physical Possibility. Legal Permissibility. Financial Feasibility and Maximum Profitability, RWE determined the most appropriate methods to value MMJ licenses is by using the Income Approach.
An extract of the RWE report is available on Marapharms website at www.marapharm.com under the tab “Investors” and will also be filed on SEDAR.
ABOUT MARAPHARM VENTURES INC.
Construction photos and videos can be accessed through the Marapharm website. Marapharms common shares are publicly traded in Canada, under the ticker symbol “MDM” on the Canadian Securities Exchange, and in the United States, under the ticker symbol “MRPHF” on the OTCQB, and in Europe, under the ticker symbol “2M0” on the FSE.
Marapharm has 300,000 square feet of medical marijuana licenses for its land and facilities in WA and NV. About two and a half 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.
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.
Neither the CSE, the FSE nor the OTCQB® has approved nor disapproved the contents of this press release. Neither the CSE, the FSE nor the OTCQB® accepts responsibility for the adequacy or accuracy of this release.
FORWARD – LOOKING STATEMENTS:
Certain statements contained in this news release constitute forward-looking statements, specifically with respect to the disclosure contained in the valuation report. 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. Specifically, Marapharm may not be able to realize the valuation of its Nevada property, or extract such value from its Nevada property, as disclosed in the valuation report and there is no assurance that any business objectives with respect to, or plans for, the Nevada project will proceed to completion or be successful.