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Marapharm Announces a Concurrent $10 million USD Bond Offering For Washington State Project

Marapharm Ventures Inc. (“Marapharm”) is pleased to announce, in addition to its $5.5 million bond offering for Marapharm Las Vegas, LLC, a concurrent non-brokered private placement of secured convertible bonds for gross proceeds of up to $10,000,000 USD for Marapharm Washington, LLC. The bonds will have a face value of $10,000 per bond, bearing interest at the annual rate of 8.5% until the maturity date of December 30, 2021. The offering is open for subscription until December 30, 2016, or until determined by the directors of Marapharm, and may be closed in tranches. The proceeds from the private placement will be used as a debt facility for Marapharm Washington, LLC (“MW”) and the bonds will be secured by the assets of MW, which include cash, real estate (13 acres of highway frontage industrial property) with multiple buildings, tenants, and revenue, all located in Washington state.

The bonds will be open for prepayment without penalty, have a 5-year term, 5- year amortization, with monthly payments of principal and interest beginning 4 months from the closing date.

In addition, Marapharm has agreed to issue a 3% bonus for each bond issued, such bonus to be payable with Marapharm common shares at a deemed price of $0.75 per share on the closing date. The bonds, in part or full, will be convertible into common shares of Marapharm at the conversion price of $1.00 per share for year 1, $2.00 per share for year 2, and $3.00 per share for year 3. A finder’s fee of up to 10% is payable to finders. All funds are in U.S. dollars. MW intends to use the net proceeds of the private placement to pay for real estate, equipment, operating capital costs, and construction and renovations of facilities for the cultivation and production of cannabis or marijuana products.

The real estate in Washington is 13 acres of prime highway frontage industrial land with more than 55,000 square feet of buildings that would cost more than $100 a foot to replace,” says Linda Sampson, CEO of Marapharm, “so including the property and the value add with renovations and planned new construction, plus the existing services and present income, Marapharm’s view is that the $10 million bond is basically a partial advance to equity and is very well secured.

 

ABOUT MARAPHARM VENTURES INC.
www.marapharm.com
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.

FOR FURTHER INFORMATION:
www.marapharm.com  or 778-583-4476 email info@marapharm.com

STOCK EXCHANGES:
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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.

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