IJJ Corporation (IJJC) announces the completion of negotiations and closing of transactions in which it acquired contractual rights to receive income from two separate medicinal marijuana farming operations, of $2,000,000 and $100,000 annually, in perpetuity
SILVER SPRING, MD / ACCESSWIRE / December 19, 2014 / IJJ Corporation (IJJP.PK) was able to on Friday, November 27, 2014, completed its negotiations and closed transactions in which it acquired a contractual right to receive income from two separate medicinal marijuana farming operations, of $1,990,625 and $109,688 annually, in perpetuity. The Company, along with five other publicly traded companies, bought into and became a beneficiary of contracts (Suite of Services/Funding/Rental Agreements) with the World of Marihuana Productions Ltd. (the "WOM Agreement") and with Michigan Plant Technologies LLC (the "MPT Agreement"). The contracts will be available for reviewed on our website, at Cannabisheadliners.com within two weeks.
This transaction was approved by a court of competent jurisdiction following a fairness hearing. We were able to acquire $2,100,313 of annual income in exchange for stock to be delivered in the future, over time, currently worth, $1,466,400 at today's price. The value of the stock to be conveyed by the Company is less than one year's income, even though the income to be paid pursuant to the contracts is to continue for as long as the marijuana farms continue to operate. Company's management feels that entering into such multi-year agreements in return for shares of the Company is a great opportunity. As a result of our involvement in the financing of this project, it is our opinion that we will be in line for other similar projects in the medicinal marijuana field.
Collectively, the total of the periodic contract payments, annually, provided for in the MPT Agreement and the WOM Agreement, are $11,375,000 and $731,150, respectively, referred to herein as the "Property Interests". The contracts also require that the investors from whom the Property Interests were acquired (in exchange for the stock) pay, collectively, to construct the farms and the facilities $3,500,000 and $750,000 respectively. None of the five publicly trading issuers are obligated for these payments to facilitate the construction of the facilities for the growing of medicinal marijuana, that being the responsibilities of the investors. Following the execution of all of these agreements, the investors remain liable for their portion of these obligations and the issuers will receive the income amounts or Property Interests. Until the investors' obligations are paid in full, 90% of any and all amounts realized are placed in escrow, to assure that the farms and facilities are constructed.
Once the construction process of the farming operations commences, the WOM and MPT principals will provide weekly updates, including photographs of the progress.
J. Udesky, Manager of Michigan Plant Technologies (MPT) LLC, explained that "We are thrilled that Green Science was able to put together its own brand of 'crowdfunding' with this unique group of public companies (Tykhe Corporation (formerly, Halberd Corporation, a Nevada corporation, "HALB"), Gear International ("GEAR"), Fuzznbuzz Brands, Inc., a Colorado corporation (formerly, Central Wireless, Inc., "CWIR"), National Properties Trust (formerly, Encounter Technologies Inc., "ENTI"), a Colorado corporation, Texas Wyoming Drilling ("TWDL"), and IJJ Corp. ("IJJP") to complete our fund raising for this project". MPT's J. Udesky further explained "this project will create the funds that we need to keep our local labor and food shed projects intact. Therefore, we were perfectly content with giving away the vast majority of the profit to these funding companies, in order to secure the necessary construction financing to expand our operation."
Josh Alper of Green Sciences explained that "the output from a single grow container equals that of 1.5 acres of an outdoor facility, without the hazards of weather and pests, and without pesticides or the hazards of mother-nature. 50 grow containers occupy approximately 1000 square feet of grow space. The fact that the growing season is so short in Michigan, coupled with growing concerns fueled by global climate change, we think that vertical farming is the future for all types of crops. This project will employ the latest features of Green Science's R&D Facility."
About Michigan Plant Technologies, LLC
MPT uses cargo containers and truck trailers to create safe and predictable growing environments for herbs, lettuces, and a variety of crops and is committed to growing the highest value produce possible. MPT has been focused on indoor growing systems since 2010, conceived as an extension to the kitchen skills and food pantry programs, MPT has a core mission to create opportunities for persons with employment challenges in the Greater Chicago Foodshed and beyond.
About Green Science Inc.
Green Science Inc. is an independent consulting company that can assist in a full range of services including product development, design/build - application to production, zoning & municipal approvals, third party certification and testing services. The current Green Science facility is a fully licensed food processing facility and has all of the permits and licenses required to expand into the use of grow containers. The facility is fully complaint with the current "Caregiver" model in Michigan and currently services patients in the Michigan Medical Marijuana Program.
About IJJ Corporation:
IJJ Corporation (IJJC) is an ambitious innovative company managing a B2B network designed as a subscription base services for affordable bundled private cloud networkable applications, standalone software application, and services. The Company's objective is to continue to develop and integrate services and products in order to provide the most comprehensive, cutting edge, turnkey solutions and management services to its clients.
Forward-looking statement
This press release contains statements which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of the Company and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Investors are cautioned that due to the Company's acquisition of the right to receive income from marijuana farming operations, an investment in this Company is extraordinarily risky, involving a multiplicity of extreme risks, that in some respects exceed that of any legal investment in the history of investing, particularly given the conflict of laws and the potential consequences of that conflict, including very substantial legal risk of federal prosecution, penalty and imprisonment, as marijuana is still classified federally as a Schedule 1 narcotic.
It is a felony, in violation of the Controlled Substances Act, to distribute, cultivate or use marijuana; and the very comprehensive federal and international anti-money laundering statutes, including: Bank Secrecy Act (1970), Money Laundering Control Act (1986), Anti-Drug Abuse Act of 1988, Annunzio-Wylie Anti-Money Laundering Act (1992), Money Laundering Suppression Act (1994), Money Laundering and Financial Crimes Strategy Act (1998), Uniting and Strengthening America by Providing Appropriate Tools to Restrict, Intercept and Obstruct Terrorism Act of 2001 (USA Patriot Act [Title III of the USA Patriot Act is referred to as the International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001]), Intelligence Reform & Terrorism Prevention Act of 2004. At least a portion of these provisions expressly include restrictions upon the use of the banking system to transfer the proceeds of such investments, which could be viewed as money laundering.
These violations are irrespective of the laws of the jurisdiction in which the marijuana is produced, since, at any time, despite its current position, the Department of Justice could choose to prosecute the Company and its officers, and all those who may be perceived to have aided and abetted in this process. Accordingly, there remains a substantial legal risk of federal prosecution, penalty, forfeiture and imprisonment, and for a multitude of potential violations. Additionally, the cost of assuring compliance and the costs associated with otherwise normal business transactions, are substantially enhanced by these circumstances. Risks also include a very substantial strategic risk associated with lack of ownership and consequent lack of control over the subject property and operations, which lack of ownership and control is mandated by the laws and regulations of the jurisdiction in which the marijuana is grown.
The risks also include a very substantial economic risk, including as a consequence of the foregoing recitation of other risks. It is just such risks that that have prevented the growers from securing any financing from other sources, over a substantial period of time. Finally, given the extraordinary return on the investment, there is even a risk of the financial arrangement being construed as a "loan", which may, at least arguably, not be exempt from applicable usury laws, even though this financial arrangement is not a loan, let alone a conventional loan, but is in the nature of risk capital financing/provision of services and real estate and that the contemplated compensation appears to be, and has been represented by the pay oars to be commensurate with the multiplicity and magnitude of the risks, including those as above identified.
SOURCE: IJJ Corporation