Matica Announces Letter of Intent to Acquire a 70% Interest in a Review Stage Marijuana Producer Applicant
Toronto, Ontario / TheNewswire / March 13, 2017 - Matica Enterprises Inc. (MMJ-CSE) (39N - Frankfurt) (MQPXF - OTC PINK) ("Matica" or the "Company") is pleased to report that the Company has signed a letter of intent ("LOI") for Matica to become a majority owner of a late stage applicant under the Access To Cannabis for Medical Purposes Regulation ("ACMPR").
The target company is a Quebec based applicant with a ten thousand square foot (10,000 sq. ft.) facility under lease. The target company ("Sellers") is a late stage applicant with the goal of becoming a licenced producer under ACMPR and has completed the security clearance stage and is now under review. The 10,000 sq. ft. facility is located in an industrial park outside of Montreal. Upon completion of due diligence, Matica and the Sellers will proceed to a definitive agreement ("Agreement") on or by April 5, 2017, which will allow Matica to acquire an initial sixty-five percent (65%) interest with the right to earn an additional five per cent (5%).
Matica has paid the $50,000 due on signing, as directed by the Sellers. After successful due diligence and signing of the definitive agreement, on or by April 5, 2017, Matica will pay an additional $135,000 in cash and issue 6,000,000 common shares of Matica. After completion of the review stage, Matica will be required to provide funding of $2,200,000 to complete the build out of the medical marijuana facility in preparation for Health Canada inspection. This will earn Matica an initial sixty-five per cent (65%) interest. Within 30 days of Matica receiving notification of licensing by Health Canada, Matica will pay an additional $400,000 and Matica will receive an additional five percent (5%) interest for a total seventy (70%) interest. After the completion of twelve (12) months of production at the facility, Matica will make a final payment of $400,000.
Matica Enterprises CEO, Boris Ziger states, "We have been kicking the tires on quite a few facilities over the past few months and are pleased with what we have seen in Quebec. Our past experience has shown that this industry is very much about the people and we are confident that we have found a group that we can work with to build a successful business for our shareholders."
For more information on Matica please visit the website at: www.maticaenterprises.com.
On behalf of the Board of Directors
MATICA ENTERPRISES INC.
Boris Ziger, CEO & Chairman
The Company's filings are available for review at www.sedar.com and www.thecse.com.
For further information, please contact Boris Ziger, Chief Executive Officer, at:
Certain information in this press release may constitute forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Corporation assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Corporation. Additional information identifying risks and uncertainties is contained in the Corporation's filings with the Canadian securities regulators, which filings are available at www.sedar.com.
The CSE has not reviewed, approved or disapproved the content of this press release.