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by Stockwatch Business Reporter

The TSX Venture Exchange fell 5.69 points to 522.73 Thursday. Robert van Santen's Canadian Securities Exchange-listed shell, Genovation Capital Corp. (GEC: $0.04), has sold $200,000 (U.S.) worth of convertible debentures to Mr. van Santen's own Westland Capital Advisors SA. Genovation will use the proceeds for its planned acquisition of MKHS Investor LLC, a licensed medical marijuana grower and seller in Arizona. Late last month, the shell announced its plan to roll back shares 1 for 3, leaving it with 10,406,545 postconsolidated shares issued, and then issue 36,475,000 postconsolidated shares to MKHS. The target owns an 11,000-square-foot warehouse, for the cultivation and extraction of medical marijuana, a 3,000-square-foot greenhouse, for growing the marijuana, and two dispensaries, for selling the marijuana to qualified patients.

According to Mr. van Santen, the sole shareholder of MKHS is Murphy Kittrell, a commercial real estate developer in Arizona. His company, Turnkey Development LLC, lost its (then) two Arizona properties to secured creditors in 2012. He evidently recovered from that loss; Arizona dispensaries need to prove that they have at least $150,000 (U.S.) of start-up capital before receiving a licence. Mr. Kittrell went into the medical marijuana business at a good time. In September, 2014, Arizona's Santa Cruz county, where Mr. Kittrell now manages his grow op, enacted a stricter marijuana cultivation law that requires growers to notify their potential neighbours of development plans and to hold a public hearing. Fortunately for him, he received his permit before he had to worry about nosy neighbours monopolizing town hall meetings called in an effort to thwart his agricultural intentions. It is not yet clear whether Mr. Kittrell will join the board of Genovation, but what is clear is that the neighbours will have plenty more to say about it, regardless of whether he joins the board or not.

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