KELOWNA, BC / ACCESSWIRE / September 27, 2016 / Marapharm Ventures Inc. (Marapharm), (OTCQB: MRPHF), (CSE: MDM) and (FSE: 2M0) announces several key developments in its wholly owned subsidiaries in Nevada, Washington, and Kelowna.
LAS VEGAS, NEVADA
Highlights
- 3 Provisional Licenses have been procured
- Total square footage of all pending licenses ~300,000 square feet (>27,000 sq. meters)
- Special Use Permit on the 7-acre parcel of land has been granted by City of North Las Vegas for all three licenses
- Nevada Marijuana Legalization Initiative (also known as "Question 2") on ballot November 8, 2016
- As announced September 19th, 2016, Kurt Keating has accepted the position of General Manager of Cannabis operations for Marapharm's wholly owned subsidiary Marapharm Las Vegas, LLC
In Nevada, the Company controls a provisional grow license in Las Vegas, where it is planning to build a medical marijuana facility of up to approximately 70,000 square feet. On October 9th, 2015, the Company closed on the purchase of approximately 5.9 acres of land in Apex Business Park in North Las Vegas, Nevada, as well as the rights by assignment, to purchase the equity interests in a Nevada limited liability company to use a provisional license, which is a tenant by lease, to grow medical marijuana.
The Company has completed the land acquisition, and pursuant to the offer, the Company paid US$1,000,000 for the land, the option to purchase a license now associated with the property, a business plan, and proposed facility drawings. Subsequently, the company entered into a negotiation to purchase an additional 1.1 acres for a total of 7 acres.
In addition to this acquisition, the Company has concluded a separate opportunity for 75% ownership of two further licenses to be added to the license portfolio: one for cultivation and the other for processing. The total square footage of all pending licenses to approximately 300,000sq', including a 16,000sq' processing license. The plan is to merge all 3 licenses onto the 7-acre parcel and operate as a campus. The special use permits, allowing all three licenses to operate from that property, have been approved by the City of North Las Vegas. This transaction for the latest two pending license acquisition was completed and announced September 21st, 2016.
For the reader's information, statistics from December 2015 shows only 25 cultivation facilities, 9 dispensaries and 6 production facilities are operational in the whole state of Nevada. Nevada Marijuana Legalization Initiative (referendum) for recreational use is on the November 8, 2016 ballot in Nevada. "It is highly anticipated that once Nevada votes in November whether to legalize marijuana for recreational use, the silver state will join the ever growing state list for recreationally approved cannabis use."
WASHINGTON STATE
Highlights
- Closed acquisition of 30,000 sq. foot (~2700 sq. meters) Production and Processing facility in Lynden, Washington Facility
- Advanced $1.5 million for tenant improvements
- Contract procured with i502 licensed tenant whereby Marapharm Washington, LLC will receive $200,000 per month from Living Green, Inc. in rent
- Rent payment's accrued from March 2016
As per the August 17th news release, Marapharm Washington, LLC, a subsidiary of Marapharm, has concluded a lease and purchase option agreement of a 30,000 square foot industrial building located in Whatcom County, WA. In conjunction with this acquisition, the company has advanced $1.5 million to its subsidiary and is in the process of assisting the leaseholder, by way of tenant improvements to the facility in order to achieve increased productivity. Marapharm Washington, LLC, will receive $2.4 million per year-$200,000 payable on the first of each month, with payments contracted to have accumulated since March 2016-for providing the facility to the marijuana licensee, Living Green, Inc. Additionally, Marapharm Washington, LLC intends to provide marketing and branding consultation services to Living Green, Inc., optimizing our relationship with Living Green, Inc. while respecting the boundaries set forth by Washington law.
KELOWNA, BRITISH COLUMBIA
Highlights
- Marijuana for Medical Purposes Regulations (MMPR) license application filed with Health Canada in 2014
- Security Clearance granted by Health Canada September 2015 (February 19, 2016) news release)
- Entered Review Stage February 2016
- Site plan for 20,000 sq. foot MMPR production facility on 11 acres being prepared
Earlier in September, Marapharm was contacted by Health Canada and was informed that it would be permissible for Marapharm to amend its application currently being vetted by Health Canada to incorporate the recently implemented Access to Cannabis for Medical Purposes Regulations (ACMPR) provisions. Management is pleased with this communication as many shareholders have been questioning what the MMPR policy changes would mean to Licensed Producers in Canada (as well as LP applicants). Management is working diligently to implement the new guidelines into its operational plan and will update shareholders with any and all further communications from Health Canada as Canada moves towards legalization which has been noted as a priority under Justin Trudeau's Liberal party and is expected in Spring 2017.
As per the associated commentary with the communication, "All applications that were submitted under the MMPR prior to August 24, 2016, will continue to be processed by Health Canada, and all licenses and security clearances granted under the MMPR will still be valid under the ACMPR. Going forward, Health Canada has said that a new application form will become available, which consolidates what were previously several applications under the MMPR. This will allow an applicant to apply to produce and sell fresh and dried marijuana, cannabis oil, and marijuana seeds and plants, all in one application."
Marapharm Inc. began assembling people and the proposed build out and property, located in Kelowna, British Columbia for its LP application in 2014. The proposed 11-acre parcel in Kelowna, British Columbia was confirmed by the Provincial government to be legally zoned as proper use for medical marijuana production. The property can accommodate a two story, 40,000-square-foot facility, with the requisite parking area and green space.
The construction contract is currently being prepared to build a Phase I, 20,000-square-foot production facility with an additional 20,000 square feet of additional space planned for year two. It is anticipated that the production facility will be operational six months following receipt of the building permits.
The building design addresses the following requirements, including:
- Electrical, plumbing and HVAC
- Controlled lighting
- Pest control
- Security requirements: cameras, fingerprint locks, perimeter security
- Recordkeeping requirements tied in with security
- Secure storage • Shipping and receiving
- Offices, quality assurance laboratory, research and development
- Staff requirements; and
- Environmental considerations.
The Canadian market potential is presently estimated by management of the Issuer to be valued at $1.2 billion based on a cost benefit analysis of regulatory changes for access to marijuana for medical purposes prepared by David Stambrook, Senior Economist, Delsys Group Inc.
OUTLOOK
The Company believes it is well positioned in Canada and the USA to develop a future in marijuana related industries. Management's business model is to work toward acquiring and purchasing licenses and facilities in strategic locations. Management also remains committed to providing other synergies and products for people to increase their overall quality of life. The Company is optimistic about its chances to capitalize on opportunities in and profiting from the dynamic nature of the relatively new medical and recreational marijuana industry both in Canada and the United States.
Additional information on the operations or financial results of Marapharm are included in reports on file with applicable securities regulatory authorities and may be accessed through the OTC website (www.otcmarkets.com) CSE website (http://www.thecse.com/) and Sedar website (http://www.sedar.com/) under the profile for Marapharm Ventures Inc.
FOR FURTHER INFORMATION: [email protected] or Linda Sampson, CEO, 778-583-4476.
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FORWARD - LOOKING STATEMENTS:
Certain statements contained in this news release constitute forward looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe", and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements are based on reasonable assumption but no assurance can be given that these expectations will prove to be correct and the forward-looking statements included in this news release should not be unduly relied upon.
SOURCE: Marapharm Ventures Inc.