Maple Leaf Signs a LOI with a New Medical Marijuana Collective in California
CALGARY, ALBERTA--(Marketwired - Oct 28, 2014) - Maple Leaf Green World (TSX VENTURE:MGW) ("Maple Leaf" or the "Company") announces the Company has signed a Letter of Intent ("LOI") to form a Joint Venture Agreement with a new Collective Entity ("Collective") to provide growing facilities in California and consulting service for the Collective.
The Collective is a non-profit medical cannabis collective operated for and by qualified patients, with about 250 membership patients. The Collective has the obligation to supply its membership with quality marijuana for a discounted price. Under the Californian Cannabis regulation, the Collective is allowed to grow 6 plants for each of its member. The Collective estimates each plant will produce about 2 to 3 lbs on each harvest of about 3 months growing time. The current market price in California for greenhouse grown medical marijuana is about US$2,000 per lb, discount for non-profit collectives is usually between 20 to 30% depending on the quality.
Under the LOI, Maple Leaf will build a growing facility ("Facility") of 6 cold frames (unheated greenhouses) in Southern California with the capacity to house about 400 marijuana plants in 2 phases. 1st phase to be started in the beginning of 2015 for 3 cold frames with the capacity to house about 200 plants and 2nd phase for another 3 cold frame with the capacity to house another 200 plants to be started in 2016. However, the actual amount of medical cannabis sought to be cultivated by the Collective shall be reasonably related to the current medical needs of the Collective's members. The Facility will be leased to the Collective after completion of 1st phase but it will remain under the ownership of Maple Leaf. Maple Leaf will be responsible for the financing of about US$500,000 to construct the Facility. Following operational readiness of the Facility, the Company will also provide guidance and consulting service to the Collective for the growing operation. In return, the Collective agrees to pay the Company a rental fee for the Facility based on number of cold frames built and a consulting fee. Both rental and consulting fee amounts will be determined after Maple Leaf completes the budget for the Facility. The term of the Joint Venture agreement will be for ten (10) years with Maple Leaf having the option to renew for another ten years. If the demand increases due to the increment of membership of the Collective, Maple Leaf agrees to expand the Facility or build another Facility upon Collective's request.
The Collective will be responsible for the daily operation of the Facility including supplying quality medical marijuana to its members, collecting payment from its member and paying Maple Leaf the lease rental and consulting fees on a quarterly basis. The Collective will provide full cooperation to Maple Leaf's guidance and consulting advice. The Collective will also use its best effort to attract and recruit more members with a target of 1,000 members by June 2016.
Under the LOI, both parties agree to deal exclusively with each other to negotiate and finalize the terms of a Joint Venture for the Facility for a period of 120 days.
In order to facilitate the forming of this Joint Venture, Maple Leaf is forming a 100% owned subsidiary in California.
"We are excited to have this opportunity to serve this new collective with our expertise in the greenhouse and Cannibis growing technology. It will definitely mark as a milestone for our first step into the U.S. medical marijuana industry." said Maple Leaf Green World President and CEO Raymond Lai.
For further information regarding Maple Leaf Green World Inc., visit www.mlgreenworld.com.
About Maple Leaf Green World Inc.
Maple Leaf is a Canadian company that focuses in the agricultural/environmental industry with three main areas of activity:
Eco-Agriculture - it pursues several projects around the world. In China, it is focused on growing value-added tree seedlings and nursery products that assist with anti-desertification.
Renewable Energy - it pursues various renewable energy projects around the world, including Yellowhorn in China which would provide valuable Yellowhorn seeds and ultimately oil from such seeds for the manufacture of bio-diesel fuel and premium healthy cooking oil.
Canadian MMPR - It pursues opportunities within the medical cannabis industry. If and when a MMPR license is obtained and through an agreement to lease a greenhouse facility with Woodmere Nursery Ltd., it will become a Canadian producer. It is currently seeking a Canadian MMPR licensed producer status to grow medical cannabis in Canada for domestic consumption and export to approved countries.
Neither the TSX Venture Exchange or its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements in this news release including (i) statements that may contain words such as "anticipate", "could", "expect", "seek", "may" "intend", "will", "believe", "should", "project", "forecast", "plan" and similar expressions, including the negatives thereof, (ii) statements that are based on current expectations and estimates about the markets in which Maple Leaf operates and (iii) statements of belief, intentions and expectations about developments, results and events that will or may occur in the future, constitute "forward-looking statements" and are based on certain assumptions and analysis made by Maple Leaf. There is no assurance that Maple Leaf will be able to conclude a Joint Venture agreement with the Collective on acceptable terms, or that if an agreement is concluded, that sufficient financing can be raised or that lands and permits will be available to build the Facility at an acceptable price or on a timely basis.
Forward-looking statements in this news release include, but are not limited to, statements with respect to future capital expenditures, including the amount, nature and timing thereof; other development trends within the agricultural industry, and status of, and ability to capitalize on, opportunities available to the Company and review business strategy; expansion and growth of Maple Leaf's business and operations and other such matters. Such forward-looking statements are subject to important risks and uncertainties, which are difficult to predict and that may affect Maple Leaf's operations, including, but are not limited to: the impact of general economic conditions; industry conditions; available equity or debt financing; government and regulatory developments including availability of requisite licences; product supply and demand; competition; and Maple Leaf's ability to attract and retain qualified personnel. Maple Leaf's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do transpire or occur, what benefits Maple Leaf will derive there from.
Maple Leaf maintains a forward-looking statement database which is reviewed by management on a regular basis to ensure that no material change has occurred with respect to such forecasts. The Company will publicly disclose such material changes to its forward-looking statements as soon as they are known to management.