VANCOUVER, B.C. / ACCESSWIRE / June 19, 2014 / Umbral Energy Corp. (TSX-V: UMB) ("Umbral" or the "Company") is pleased to announce that it has entered into an exclusivity and standstill agreement effective June 18, 2014 with 1005477 BC LTD ("1005477"). 1005477 has the rights to acquire 50% of the common shares of a certain BC Corporation (the "Target") which is developing a physical location and appurtenant facilities for the production of medical marijuana. The target does not currently have a licence to produce marijuana. While there is no definitive agreement at this time, the company has entered into a standstill and exclusivity period in order to conduct due diligence and review the business plan of the target.
While the Company is conducting diligence and having exclusive discussions and negotiations with respect to the target, no agreement in principle or otherwise has been entered into with any party and there is no assurance that the Company will acquire any assets, directly or indirectly.
Medical marihuana has been legally available to Canadians upon the advice of a physician since 2001. Previously, medical marijuana was only available to individuals by applying for access to Health Canada's supplies, obtaining a personal-use production license, or designating a third party to cultivate marihuana on their behalf under license. With the introduction of the Marihuana for Medical Purposes Regulations (MMPR), the Government of Canada has enabled the establishment of commercial marihuana production and sale by licensed producers.
Jag Bal, President and CEO states "Umbral is diligently working towards aligning with a company that has the necessary team, infrastructure and expertise to become a licensed grower under the new MMPR. This standstill agreement will provide the time necessary to help achieve our goal".
The Company is currently listed as a junior resource issuer having a mineral exploration projects. The Company is considering other activities to increase shareholder value, including non resource projects. The Company has a mineral exploration project in Quebec, Canada as well as an oil and gas project in Alberta, Canada.
ON BEHALF OF THE BOARD OF DIRECTORS OF UMBRAL ENERGY CORP.
Jagdip "Jag" Bal
President and CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors - including the availability of funds, the results of financing efforts, the results of exploration activities -- that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE: Umbral Energy Corp.