Marapharm Ventures Inc. (“Marapharm” or the “Company”) (www.marapharm.com) The company announces that they have received approval at a public hearing held June 8, 2016 from the City of North Las Vegas to relocate and merge three medical marijuana licenses onto one property, owned by Marapharm Las Vegas LLC, a subsidiary of Marapharm and located in the Apex Industrial Park. Building permits are in place and two starter buildings are approved to house the three licenses and the buildings are on order with deposits paid. Delivery and construction commencement is projected for July 30, 2016. “This will allow the company to operate and train staff in our cultivation methods and standard operating procedures, in a fully operational facility, while the phased development of the larger campus is in progress and, when the buildout is complete Maraharm will be the largest producer at the present time in the state of Nevada with close to 300,000′ of cultivation and production ” said Corey Klassen CFO. Marapharm Ventures Inc.
Marapharm Washington, LLC, a subsidiary of Marapharm, has concluded an asset purchase, lease and purchase option agreement of a 30,000′ industrial building located in Whatcom County, WA. Marapharm has invested and will invest an additional several hundred thousand dollars into improvements including a second floor for an additional 30,000′ (60,000′ total) for production and packaging and equipment for the building. Living Green Inc. holds a cultivation license for up to 30,000′ and a production license with no footage limitations and the application for a transfer of the license ownership is in it’s final stages of transfer. Living Green is the tenant and the lease payment to Marapharm is $20 per foot for $100,000 USD per month plus quarterly operational and performance fees and asset lease payments for a 1 year term with significant increases to be negotiated with certain level requirements stated in the agreements.
Marapharm Canada via Marapharm Inc.’s application to Health Canada for an MMPR licence has now progressed through the Security Clearance Process stage. This stage is considered by Health Canada as being a significant milestone in that process. Health Canada advised on September 15, 2015, that until such time as Health Canada received the results from the security checks, there would be no further communications from them. Based on new Health Canada correspondence received recently, confirming Marapharm is now in the Review stage, the Company has been advised that the MMPR application will be thoroughly reviewed to validate all information provided including physical security plans which will be reviewed and assessed in detail. It is important to note that security clearances are not issued until the applicant is licensed, which occurs following Health Canada’s review of the pre-license inspection results in conjunction with all the information submitted for the application. Health Canada’s Office of Medical Cannabis has advised that processing during the Review stage may take several months and the Company can expect multiple communications for additional information and clarifications to support the application. Marapharm Inc began assembling people and the proposed build out and property, located in Kelowna, British Columbia for the application in 2014. The proposed 11 acre parcel in Kelowna, British Columbia was confirmed by the Provincial government to be legally zoned as proper use for medical marijuana production. The Company has been in ongoing discussions with the City of Kelowna which has of yet to establish bylaws for this new emerging industry, which reflects and integrates the Provincial governments order regarding medical marijuana facilities. As a result of these discussions and the City of Kelowna’s progress to date, the Company is investigating other jurisdictions, for a potential change of venue application to Health Canada should it be deemed necessary to expedite the process.The Company continues to remain excited and optimistic on its MMPR application as it continues in Health Canada’s MMPR pipeline. The MMPR regulations came into force in June 2013. The regulations create conditions for a commercial industry that is responsible for the production and distribution of marijuana for medical purposes. The regulations also ensure that Canadians with medical marijuana need can access quality controlled marijuana under secure and sanitary conditions.
Marapharm also announces today that in addition to it’s marijuana businesses one of it’s subsidiaries, Maragold, will offer hemp infused Maragold health and wellness products through the Maragold online store to offer a healthy and nourishing alternative to mainstream products. Maragold has 10 items presently including hair products, botanical extracts, essential oils and health cleansers. The new recipes will be produced in kitchens in British Columbia and Washington.
Production is slated to begin July 15, 2016. The online store for merchandising is slated to open September 30, 2016. Shipping and receiving facilities are ready to go and are able to provide fulfillment for the Christmas sales season. ” The health and wellness space does billions of dollars in sales each year. Maragold’s hemp additive to an already unique and successful product line lights up the potential”, Linda Sampson, CEO, Maragold.
Marapharm raised $528,000 in the first tranche and $563,500 (previously announced incorrectly as $558,500) in the second tranche in a non-brokered private placement for a total of $1,091,500. The private placement was oversubscribed and is now closed. The company will issue 5,457,500 units. Each unit will consist of one common share and one common share purchase warrant and both are subject to a statutory 4 month hold period from the date of closing. Each whole common share purchase warrant will entitle the holder to acquire one common share at CDN $0.40 The purchase warrants may be exercised at any time until one year from the closing of the unit offering. The unit offering is subject to applicable regulatory requirements and Canadian Securities Exchange (CSE) approval.
Marapharm has accepted the resignations of Les Kjosness CEO, Director, and Jim Turner Corporate Secretary, Director. Linda Sampson, director, has accepted the position of CEO on an interim basis, as well as positions on the audit and conduct committee. Corey Klassen, director, remains as the CFO. Yari Nieken has been appointed as a director and corporate secretary. Yari has a wide range of public company and capital market experience. He is the founder and president of Foremost Capital Inc., an exempt market dealer. He is a consultant for public companies with Paradigm Shift Consulting, has served on boards of several public companies and was an investment advisor at Union Securities and remains a registrant in good standing in British Columbia, Alberta and Ontario. Yari holds an MBA from the Sydney Graduate School of Management and a BA from the University of British Columbia.
Marapharm has consolidated it’s operations and corporate governance to it’s Kelowna, BC office for the interim and most operations are expected to be relocated to Las Vegas within the next few months.
Marapharm’s Annual General Meeting has been called for August 23rd, 2016. The company is entering the operations phase of its business and accordingly directors with experience and the skill set required to move the company into and through this next phase will be nominated for the positions.