Marapharm Ventures Inc. (“Marapharm” or the “Company”) (www.marapharm.com) is pleased to announce it has furthered its interests in the United States marijuana space and entered into an agreement for the acquisition of a licensed operating, production (cultivation) and processing (production) marijuana business located and operated in Whatcom County, Washington State. The acquisition includes two marijuana licenses for production and processing, inclusive of all operating assets (the “Interests”) from a private Washington State licensed marijuana enterprise. The licenses were granted to the Washington private company and the designated license holder by the State of Washington under Washington State initiative I502 in regards to the acquisition of a tier 3 production and processing license. The transferring of the licenses will be initiated to Marapharm’s designated license holder on closing, expected on or before April 29, 2016, in accordance with Washington State marijuana legislation and regulatory requirements. Medical and recreational marijuana use is legal in Washington State.
The acquisition complements the Company’s business strategy to expand its business footprint within the U.S. emerging marijuana markets and the rapidly increasing number of legalized medical and recreational jurisdictions in the United States. Pursuant to press releases, February 19 and March 8, 2016, Marapharm has acquired two medical marijuana licenses, an option to purchase an additional medical marijuana license, and owns 5.9 acres of land associated with the option in Nevada. The portfolio combined with the Washington State acquisition will result in approximately 303,000 square feet of U.S. marijuana licenses.
The terms of the agreement to acquire the Interests are from a third party acting as agent and a Washington State resident acting as a finder. The marijuana production license consist of a 21,000 square foot of marijuana canopy licence, with an additional option that can be received from the State for an additional 9,000 square feet of approved marijuana canopy coverage. The processing license has no limitations. The business has its operations in a 28,000 square foot building. The purchase price is for USD $1,500,000, comprised of a cash portion of USD $1,300,000, and the balance of the purchase price to be paid from the issuance of USD $200,000 treasury shares of the Company to be issued at CDN $0.28 per share, with exchange calculated effective March 10, 2016, and subject to applicable regulatory hold periods. The Company intends to finance the acquisition through a proposed debenture financing with a third party, subject to completion of negotiations. The Company has also advanced negotiations with the property owner of the Washington private business by way of a term sheet for a long term lease which includes a six month option to purchase the entire property which includes the private marijuana business and multiple buildings for USD $4,500,000. The transaction and financing’s are subject to applicable Canadian and U.S. and State statutory, regulatory, and compliance laws, and approvals, transfers and State security deposits as required.
Les Kjosness, CEO reported, “We are excited about this latest step in our corporate development in Washington. The business in Washington is relatively new. During the application and construction period the facility produced revenue of nearly $300,000 while operating from just 1,000 square feet of a 28,000 square foot building. Final occupancy permits were granted by the State to the Washington private company which now allows Marapharm to proceed to fund the final improvements to maximize growth and revenue. With the expertise of our Washington grower and his team, and an immediate escalation of planting, we are expecting the Company’s first revenues a few months from now. Monthly revenues of marijuana sales in the State are posted on the Washington Liquor Board web site and operations with similar build-outs or footprints of canopy coverage produce monthly revenues in excess of $1,000,000 per month.”
ABOUT MARAPHARM VENTURES INC.
Marapharm trades under the symbols MDM on the Canadian Securities Exchange (“CSE”), 2M0 on the Frankfurt Stock Exchange (“FSE”) and MRPHF on the U.S. OTCQB® marketplace.
Marapharm (www.marapharm.com) and its wholly-owned subsidiary in Canada, Marapharm Inc., and its wholly-owned subsidiary in the United States, Marapharm Las Vegas LLC, is engaged in the development, production of and commercialization of phytocannabinoid-based pharmaceutical products, in Canada and the United States. The Company has applied to Health Canada to become a licensed producer under the Marijuana for Medical Purposes Regulations (MMPR) issued pursuant to the Controlled Drugs and Substances Act (Canada). The company also intends to focus its development and growth strategy on Colorado, Nevada, Washington and California with plans to acquire – grow, production and dispensary licenses in the United States.
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.cnsx.ca) and Sedar website (www.sedar.com) under the profile for Marapharm Ventures Inc..
FOR FURTHER INFORMATION:
www.marapharm.com or 778-583-4476 email firstname.lastname@example.org
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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.
Various risks and other factors could cause actual results, and actual events that occur, to differ materially from those contemplated by the forward looking statements, such as whether Marapharm is able to meet price, performance, quality and delivery requirements. Although Marapharm believes that the expectations represented by any forward-looking statements and forward-looking information contained herein are reasonable based on the information available to them on the date of this document, management cannot assure investors that actual results, performance or achievements will be consistent with these forward-looking statements or forward-looking information. Marapharm undertakes no obligation to update the information in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events.