Marapharm Ventures Inc. (“Marapharm” or the “Company”) (www.marapharm.com) pursuant to press releases issued September 23 and 24, 2015, is pleased to announce that its application to Health Canada to become a licensed producer under the Marijuana for Medical Purposes Regulations (“MMPR”) through its wholly owned subsidiary, Marapharm Inc., is now at the Review stage.
In September 2015, Marapharm’s application to Health Canada for an MMPR licence had progressed to the Security Clearance Process stage. According to Health Canada’s website there are several significant stages to the application process. Reaching the Review stage is another important milestone in the MMPR licence process.
The Company provides a further operations update on activities carried out in Canada and the United States through its wholly-owned subsidiaries, Marapharm Inc. and Marapharm Las Vegas LLC as follows:
Canadian MMPR Update
Marapharm Inc.’s application to Health Canada for an MMPR licence as previously announced September 24, 2015, 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 Las Vegas LLC Update
Marapharm has acquired through its wholly owned subsidiary, Marapharm Las Vegas LLC, a parcel of land totalling approximately 5.9 acres in Apex Industrial Park, located in North Las Vegas, Nevada. Apex Industrial Park is an approved business park catering to the cannabis industry and designated by the City of North Las Vegas for medical marijuana businesses. Marapharm has made significant recent progress.
Marapharm, and an individual located in Washington State with his Nevada limited liability company holding a provisional marijuana license (collectively the “Option Holder”), have been dealing with the State of Nevada and City of North Las Vegas regarding permitting, regulations and transfer approvals of the provisional license associated and conditional with the land purchase. The Company and its operations team have also been working with its Nevada based design architect in securing the appropriate permits for the initial design and construction of an approximate 5,000 square foot pilot facility, of an intended eventual total 70,000 square foot licensed and permitted grow license area on this parcel. The pilot facility layout that has been designed will be constructed in such a manner as to allow for maximization of efficiency for utilizing the license in growing, trimming, drying and packaging. The acquired land parcel may also accommodate additional marijuana licenses acquired contingent on amongst other conditions, the land use permitting by the City of North Las Vegas.
Marapharm Las Vegas LLC experienced some delays from the State of Nevada on new regulatory statutes regarding the sector and those involving license transfers described above, and while concurrently securing appropriate permits from the City of North Las Vegas. The Company also experienced some delays from the developer on infrastructure issues at the Apex Business Park. Those delays were fundamentally incurred in part by the City Planners reconciling the “tie-in” of the developer’s submitted plan to Marapharm’s medical marijuana cultivation plans. Those issues have been resolved, the appropriate permits secured or in process, and construction and development plans now accelerating subject to capital and human resources.
In conjunction with the land purchase from the business park developer, Apex Land Holdings LLC., material terms and conditions of this project include the subsidiary holding a promissory note in the amount of USD $309,750, with an interest rate of 7% per annum, payable monthly, maturing April 1, 2018. Also tied to the land purchase in North Las Vegas, the subsidiary has also been assigned an option agreement for a provisional marijuana license, from a third party, pursuant to an offer to purchase agreement with Marapharm dated May 11, 2015 in the amount of USD $1,000,000. The option agreement provides for the exercise of an 85% option in the amount of USD $245,000 to be exercised within 14 days, notice provided by the Option Holder, of the approval of the appropriate Nevada State agency having oversight of Nevada’s medical Marijuana program, and subsequent 15% option in the amount of USD $1,000,000 that may be exercised within two years of the first option, to acquire defined interests including a provisional license to grow medical marijuana in Nevada from the Option Holder, subject to certain financial terms and conditions being met, and regulatory transfers, financial and state security deposits and approvals being met, as applicable.
Further operational updates will be provided as appropriate.
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..
Neither the CSE, the FSE nor the OTCQB® have approved nor disapproved the contents of this press release. Neither the CSE, the FSE nor the OTCQB® accept responsibility for the adequacy or accuracy of this release.
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.