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Maple Leaf Enters into a Supply Agreement with Cannmart Inc.
CALGARY, Alberta, Oct. 30, 2018 (GLOBE NEWSWIRE) -- Maple Leaf Green World Inc. (“Maple Leaf” or the “Company”) (NEO: MGW, OTCQX: MGWFF) announces that the Company has entered into a product acquisition agreement (the “Agreement”) with Cannmart Inc. (“Cannmart”). Pursuant to the Agreement, the Company must obtain a license to produce and distribute medical cannabis from Health Canada before Cannmart is able to purchase any products from the Company. The Company previously filed an application with Health Canada for a license to produce and sell cannabis (the “Application”) under the provisions of the Marihuana for Medical Purposes Regulations (the “MMPR”). The MMPR were succeeded by the Access to Cannabis for Medical Purposes Regulations, SOR/2016-230 (“ACMPR”) on August 24, 2016, and the ACMPR has since been replaced by the Cannabis Act, SC 2018, c 16, which came into force on October 17, 2018. The Company’s Application pertains to the Company’s intended cultivation facility to be located in Telkwa, British Columbia.
Pursuant to the Agreement, the Company grants Cannmart the exclusive option (but not the obligation) to supply to Cannmart all of its products, upon the Company’s receipt of a license to produce and sell pursuant to applicable legislation and regulations. For further clarification, Cannmart has the first refusal on all the products produced by the Company and should Cannmart decide not to purchase the offered products from the Company, Maple Leaf shall have full liberty to sell products to third parties.
Cannmart is a wholly-owned subsidiary of Namaste Technologies Inc. Cannmart has received an ACMPR medical cannabis “sales-only” license. Cannmart operates as an online marketplace for medical cannabis sourced from multiple licensed producers, which offers patients a curated selection of medical cannabis strains in one location.
Private Placement Closed
The Company announces that it has closed its previously announced non-brokered private placement (the “Offering”), which was conditionally approved by the Aequitas NEO Exchange Inc. (the “NEO Exchange”) on June 12, 2018, and previously announced in its press release dated June 1, 2018. The Company received subscriptions in three separate tranches totalling $3,014,219.40. The Company has issued an aggregate of 5,023,699 units of Maple Leaf (“Units”) at a price of $0.60 per Unit. Each Unit is comprised of one common share in the capital of the Company (each, a “Common Share”) and one Common Share purchase warrant (each, a “Warrant”). Each whole Warrant entitles the holder to acquire one Common Share at an exercise price of $0.90.
The Offering is subject to the receipt of final approval of the NEO Exchange. The securities issued under the Offering are subject to a four-month hold period in accordance with applicable Canadian securities laws.
As previously disclosed in Maple Leaf’s press release dated June 1, 2018, the Corporation will pay to certain finders a fee equal to 7% of the proceeds raised from subscribers to the Offering introduced to the Corporation by such finders. Payment of such fees for first 2 tranches has already been made and the finder’s fee payment for the third tranche will be made upon receipt of final approval from NEO Exchange.
For further information regarding the Company, please visit www.mlgreenworld.com.
About Maple Leaf Green World Inc.
Maple Leaf is a public Canadian company that focuses on the cannabis industry in North America. The Company currently operates cannabis projects in British Columbia and Nevada. With over ten years of extensive greenhouse management experience, the Company applies its eco-agriculture knowledge and cultivation technology to produce contaminant-free organic 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”.
This press release includes certain statements and information that may be deemed “forward-looking statements” within the meaning of applicable Canadian securities legislation. Such forward-looking information relates to future events about Maple Leaf’s intended business plans and operations, including the entrance into the Agreement with Cannmart for the supply of cannabis products, as well as the Company’s Application. All information other than historical fact may constitute forward-looking information within the meaning of applicable Canadian securities legislation.
Generally, forward-looking information can be identified by the forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget” or “budgeted”, “scheduled”, “estimates”, “projects”, “intends”, “proposes”, “complete”, “anticipates”, or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “can”, “could”, “would”, “might”, or “will be taken”, “occur”, or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: risks related to the development and operation of the Company’s projects, risks associated with general economic conditions, adverse industry events, marketing costs, loss of markets, future legislative and regulatory developments involving medical and recreational cannabis, inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms, the medical and recreational cannabis industry in Canada and the United States of America and the jurisdictions where the Company operates generally, income and sales tax and regulatory matters, competition, crop failure, currency and interest rate fluctuations, regulatory approvals including approvals from municipal, provincial, county, state, and federal regulatory bodies in Canada and the United States of America. Although the Company has attempted to identify important factors that could cause results to differ materially from those contained in forward-looking information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed, planned, or intended. Accordingly, such list of factors are not exhaustive. Additional information on these and other factors which could affect the Company’s operations and financial results are discussed in the sections relating to risk factors of the business filed in the Company’s required securities filings with applicable securities commissions or other securities regulatory authorities and which may be accessed through the SEDAR website (www.sedar.com).
Specifically, this press release includes, but is not limited to, forward-looking information with respect to the Agreement with Cannmart for the sale of cannabis products, and matters relating thereto, and the Company’s Application. Forward-looking information necessarily involves both known and unknown risks and uncertainties that could cause actual result to differ materially from those anticipated.
Although, the Company believes that expectations and assumptions reflected in the forward-looking information are reasonable, there can be no assurance that any forward-looking information will prove accurate, and actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. These forward-looking statements are made as of the date of this press release and the Company does not undertake to update any forward-looking information contained in this press release or that is incorporated by reference herein, whether as a result of new information, future events or results or otherwise, except in accordance with applicable securities laws.
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