Mr. Raymond Lai reports
MAPLE LEAF GREEN WORLD INC. ANNOUNCES CORPORATE UPDATE AND DEVELOPMENTS IN LITIGATION MATTERS IN BRITISH COLUMBIA
Maple Leaf Green World Inc. has provided the following corporate updates.
Hemp operation in California
The production of the company's new brand of CBG (cannabigerol) hemp cigarettes with Hempacco Packaging is under way. The 20-pack of hemp cigarettes will retail through Hempacco's channels and on the company's new e-commerce platform currently in development. In addition, the company is also developing its own marketing efforts on custom preroll, oil and bud sale. As such, the company is expanding and diversifying its commercialization by constructing structural buildings for processing its products, as well as for staff residency.
The company's main focus is on its California CBG hemp grow and its partnership agreement with Hempacco to develop its brand of CBG hemp cigarettes. The company recognizes the tremendous potential with Hempacco such that it will allocate a majority of its raw materials to Hempacco's processing facility. To maintain sufficient inventory for the business partnership with Hempacco and the company's other sale initiatives, the company will be expanding its operation by constructing up to two additional greenhouses. The company will also be clearing more land on its 20-acre property to prepare for an outdoor cultivation, in which a new strain, specifically formulated for outdoor grow, will be selected. The new strain will add its characteristics to a proprietary strain to create a unique brand to broaden the company's inventory.
The company has submitted a sample to the lab from its second crop to be tested for CBG and THC (tetrahydrocannabinol) concentrations as part of the licensing requirement. Harvesting will begin shortly after, and the cultivation team is expecting a higher yield than its first crop. With harvesting procedures under way, the company has also started germinating a new batch of La Creme seeds for its third crop. To see updated photos from the second harvest, please visit the company's CBG hemp website.
Matters with Maple Leaf's former lessor, Woodmere Nursery Ltd., Telkwa, B.C.
Maple Leaf's goal was to complete the Telkwa facility by securing a mortgage with the purchase of the land from Woodmere. As a result of Maple Leaf's application for subdivision of Woodmere's land, upon which the company was constructing its facility, not being successful, Maple Leaf needed to halt the completion of that facility nearly two years ago. The company thereby discontinued its lease payments to Woodmere and continued communicating with Woodmere to find a solution. Recently, Woodmere has commenced legal proceedings against the company to collect unpaid rent and associated expenses. Woodmere is seeking from the company $500,000 in damages. Woodmere has also terminated its lease to the company, thereby eliminating Maple Leaf's interests in its unfinished facility.
As such, Maple Leaf has counterclaimed against Woodmere on claims that Woodmere's acts and omissions at the time of leasing materially contributed detrimentally to the company's goals not being achieved, thereby damaging the company. In Maple Leaf's counterclaim against Woodmere, Maple Leaf has sought damages for lost value of the company's lease expenses, for the forfeited value of the facility of $11-million and for damages for lost business opportunities of $20-million.
Related matters -- addressing Maple Leaf's contractors' claims for the Telkwa facility
In related matters, litigation continues from Maple Leaf's contractors for its former facility, which claim damages for unpaid construction invoices. These eight separate actions brought against the company, directly or indirectly, have now been consolidated into a single action, where the primary defendants are Maple Leaf and Woodmere, against whose title to its property the contractors have registered builder liens. In that consolidated action, a case planning conference is scheduled for March 12, 2021, and a three-week trial has been scheduled for late June and July, 2021. Woodmere and Maple Leaf are strenuously defending this action. The company does not expect the actions to proceed on the scheduled trial dates, having been set too early for all parties to be ready to proceed. In those combined actions, the claims against Woodmere and Maple Leaf now exceed $4-million (with claims against Woodmere and its title to its property being less, due to builder lien claim limitations). One other contractor to the company obtained a B.C. Securities Commission Smithers default judgment against the company in fourth quarter 2019 for nearly $500,000, for which judgment the contractor has not taken any further court proceedings.
In all continuing litigation, each party's outstanding claims remain unproven.
Management of the company remains confident that future revenues from its hemp operations in
California may be used to reach settlements to the claims against the company referred to above.
About Maple Leaf Green World Inc.
Maple Leaf is a public Canadian company that focuses on the cannabis and hemp industry in North America. The company currently has cannabis and hemp projects in British Columbia and California. With over 10 years of extensive greenhouse management experience, the company applies its ecoagriculture knowledge and cultivation technology to produce contaminant-free cannabis products. Maple Leaf's long-term objective is to produce cannabis oil and to export its products to approved countries. The company's common shares are listed for trading on the Aequitas NEO Exchange Inc. under the symbol MGW and on the OTCQB market under the symbol MGWFF.
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