Ms. Linda Sampson reports
MARAPHARM VENTURES INC. ENTERS INTO A DEFINITIVE AGREEMENT TO EXPAND WASHINGTON STATE OPERATIONS
Marapharm Ventures Inc. has entered into a definitive agreement to acquire certain operational assets and, potentially, land and water rights related to two cannabis producers and processors operating in Okanogan county, located in Washington State.
The agreement provides for the acquisition by Marapharm of certain operational assets useful in connection with cannabis production and processing (including security cameras, fencing and irrigation systems, as well as leases for the property and mobile office units), and the right of first refusal to acquire 20 acres of agricultural land, which is well suited to the production of outdoor cannabis. The property also has access to two water wells and the right to draw water pursuant to a water rights certificate.
In a parallel process, AlphaPheno (licence No. 412104) has negotiated an option to purchase one Tier 2 and one Tier 3 production and processing licence located on the property. The acquisition of the licences will enable AlphaPheno to produce an additional 40,000 square feet of cannabis plant canopy. The purchase price for the assets and option is four million shares of Marapharm common stock, equivalent to $2,760,000 at the time of the execution of the letter of intent (see news release dated March 26, 2018). The option to acquire the licences is subject to regulatory approval by the Washington State Liquor and Cannabis Board.
Marapharm anticipates that the licences could produce, for the 2018 grow season, approximately 4,200 pounds of dry cannabis and 933 pounds of bulk trim and shake, at an initial production cost of approximately $500,000. All production costs are payable by company except plant-related expenses, which are payable by the Washington licensee per Washington law. This additional production will further solidify the financial position of AlphaPheno and provide significant additional product to AlphaPheno's contemplated extraction facility.
Marapharm's chief executive officer, Linda Sampson, stated: "We have been working diligently to complete our Washington facility, and expand the processing features and functions at the site. This will enable our tenant and future tenants to diversify consumer product development and delivery, and meet a growing demand. We are mobilizing rapidly to expand the processing capabilities of our Lynden, Wash., facility to capture critical market share."
About Marapharm Ventures Inc.
Marapharm is a publicly traded company investing in the medical and recreational cannabis space, since 2014. Marapharm has rapidly expanded to include having cultivation, production and dispensary locations in the key North American states of Washington, Nevada and California, and is seeking expansion opportunities worldwide.
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