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IRW-Press: Matica Enters Into Letter Of Intent With Medical Marijuana Producer



Published on 12 August 2014



by Press Office

(IRW-PRESS and WireNews)

Vienna, Austria


Matica Enterprises Inc. (CSE:GRF) (Frankfurt:39N) is pleased to announce that the Company has entered into a non-binding letter of intent (the “LOI”) to establish a joint venture (the 'JV') with West Coast Medical Marijuana Group (“WCMMJ”) (the “Proposed Transaction”). WCMMJ is a private group based in Langley, British Columbia which has been producing medical Marijuana under a Marijuana Medical Access Regulations ('MMAR') license.

On May 8, 2014, the Company announced that it would take steps in changing its business model. Matica is currently a mineral exploration company which plans to expand into the medical marijuana sector. We have signed Letters of Intent with ChroniCare a MMAR licensed producer of Medical Marijuana and with GlobalEx a producer of effervescent chlorine dioxide tablets for use in the Canadian and U.S. horticultural and agricultural industries. Matica intends to utilize these cutting-edge chlorine dioxide tablets in the quickly expanding medical marijuana and industrial hemp industries.

WCMMJ has been producing medical marijuana pursuant to its MMAR license since 2010. WCMMJ’s team of experienced growers has been producing high quality strains of medical marijuana with high cannabinoid (“CBD”) percentages. WCMMJ will form a JV to establish a marijuana growing operation in British Columbia and apply to become a licensed producer under the Marijuana for Medical Purposes Regulations (“MMPR”) similar to the LOI with ChroniCare. WCMMJ will also join ChroniCare in testing the effectiveness of the GlobalEx Chlorine Dioxide tablets and will be assisting in developing a cleaning and sanitizing regime for growing Medical Marijuana without the use of pesticides or fungicides to produce a high quality product that meets the high standards set by Health Canada.

Matica Enterprises CEO and Chairman Boris Ziger states, “This is an important step for Matica. We are looking to establish a stable of MMPR licenced producers staffed by experienced groups of growers who are able to grow medical marijuana in large growing environments. It's not enough to just be a grower, in addition to producing medical marijuana Matica needs to be an innovator. We need partners who have the knowledge base and experience to help us test new products and techniques to provide solutions for not just Matica but all growers at large. The GlobalEx chlorine tablets being tested at ChroniCare and now at WCMMJ is the first of such new initiatives.”

The Proposed Transaction

Under the proposed terms and conditions, and following the signature of the definitive agreement (the “Definitive Agreement”), Matica and WCMMJ will form a JV to establish a marijuana growing operation with the intent of becoming licensed under the Marijuana for Medical Purposes Regulations (“MMPR”). There can be no assurance that the JV will apply for a license or that such a license will ultimately be granted.

Matica will have a 60% interest and WCMMJ will have a 40% interest in the JV. Matica will provide financing for the new JV up to an aggregate of $1,350,000. WCMMJ will act as operator of the JV and provide its expertise related to marijuana cultivation. Matica will further issue to WCMMJ 2,000,000 shares of Matica shares upon execution of the Definitive Agreement. The Proposed Transaction is an arm’s length transaction.

Completion of the Proposed Transaction is subject to a number of conditions, including but not limited to: (a) entering into the Definitive Agreement; (b) completion of due diligence; (c) CSE acceptance; and (d) if necessary, Matica shareholder approval. The Proposed Transaction cannot close until conditions are satisfied. There can be no assurance that the Proposed Transaction will be completed as proposed or at all. Trading in the securities of Matica should be considered highly speculative.

About Matica Enterprises Inc.

The Company will continue to explore options in the medical marijuana and industrial hemp industries. While pursuing alternative projects, Matica will also continue to conduct exploration on its resource projects. Matica has graphite projects in Buckingham, Quebec. Buckingham is an historic graphite producing area which has been the scene of renewed exploration activity. Matica trades on the CSE under the symbol GRF. For more information on Matica visit the website at http://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:

Telephone: 416-304-9935

Matica Enterprises Inc.

Suite 700 - 350 Bay Street, Toronto, ON, M5H 2S6 - Tel: (416) 304-9935 - Email: info@Maticaenterprises.com - Website: http://www.maticaenterprises.com.

GRF - (CSE) - 39N - (Frankfurt)

Cautionary Note Regarding Forward-Looking Statements

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 Company assumes no obligation to update the forward-looking statements, or 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 Company. Additional information identifying risks and uncertainties is contained in the Company’s filings with the Canadian Securities Regulators, which filings are available at www.sedar.com and www.thecse.com.


Contacts

  •  
  • Joachim Brunner
  • IRW-Press
  • PR Contact
  • Tel: +43724221193011
  •  
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Posted 2014-08-12 09:09:00