- Company has officially acquired a 20% ownership interest in Natural Plant Extract of California (NPE).
- Under the terms of the agreement, Marijuana Company of America has committed to contribute $2,000,000 in total cash to the project, as well as common shares of the Company with a value of $1,000,000.
Escondido, California–(April 17, 2019) – MARIJUANA COMPANY OF AMERICA INC. (OTCQB: MCOA) (“MCOA” or the “Company“), an innovative hemp and cannabis corporation, is pleased to announce that the Company has officially acquired a 20% ownership interest in Natural Plant Extract of California (NPE).
Under the terms of the agreement, Marijuana Company of America has committed to contribute $2,000,000 in total cash to the project, as well as common shares of the Company with a value of $1,000,000. In exchange, the Company will own a 20% equity position in NPE. In addition, MCOA and NPE have also officially signed a Joint Venture Agreement (JV) to establish Viva Buds as a premier cannabis delivery company. Both NPE and MCOA will share in the profits on a fifty-fifty basis.
Viva Buds Inc. will serve as the marketing arm for NPE subsidiary
Northern Lights Distribution’s (NLD) new retail cannabis delivery
service in California, first starting with delivery services to Los
Angeles County and then rolling out to other major cities throughout the
state. NLD will contribute up to $300,000 in inventory of cannabis
products to assist in the start-up of this venture, and MCOA will
provide a vast array of marketing services and technology to promote and
build its Viva Buds brand.
NPE owns both state and city licenses
for volatile manufacturing, distribution and retail delivery of
cannabis products. NPE will manage all operations pertaining to
distribution, manufacturing and delivery of cannabis products, and MCOA
will provide capital, consulting and marketing services. NPE is
currently operating as a distributor and is completing the build-out of
its manufacturing facility, which is expected to be completed and fully
operational in August 2019.
Regarding the acquisition, Alan Tsai,
CEO of NPE, stated, “We are excited to be one of the first California
licensed cannabis companies to partner with a publicly traded company in
the US. We believe that partnering with an established company such as
Marijuana Company of America will help to build Viva Buds and establish
our foothold early by securing manufacturing and distribution contracts
with key players in the California cannabis market. We expect that this
strategic partnership will be mutually beneficial to both companies.”
Don Steinberg, MCOA CEO, stated, “After a great deal of due diligence and strategic planning, we are happy to execute an agreement to purchase ownership in NPE. This is a major step in staying true to our name Marijuana Company of America and entering into the marijuana industry in California. We have aspirations of becoming a major distributor, delivery service and manufacture in California. NPE is ahead of most of the competition in the state in terms of permitting, build-out and licensing.”
About Marijuana Company of America, Inc.
MCOA is a corporation that participates in: (1) product research and development of legal hemp-based consumer products under the brand name “hempSMART™,” which targets general health and well-being; (2) an affiliate marketing program to promote and sell its legal hemp-based consumer products containing CBD; (3) leasing of real property to separate business entities engaged in the growth and sale of cannabis in those states and jurisdictions where cannabis has been legalized and properly regulated for medicinal and recreational use; and, (4) the expansion of its business into ancillary areas of the legalized cannabis and hemp industry, as the legalized markets and opportunities in this segment mature and develop.
About Natural Plant Extracts of California
NPE is
a fully licensed cannabis manufacturing, distribution and non-store
front retail delivery. The Company has secured its licenses with the
state of California and city of Lynwood, CA. For more information about
the Company, please visit its website at https://nldistribution.com
The owners and founders of NPE are marijuana industry veterans with
decades of experience in establishing retail, manufacturing and
distribution of cannabis in California, including obtaining the first
retail dispensary licenses in Los Angeles, CA.
Forward Looking Statements
This
news release contains “forward-looking statements,” which are not
purely historical and may include any statements regarding beliefs,
plans, expectations or intentions regarding the future. Such
forward-looking statements include, among other things, the development,
costs and results of new business opportunities and words such as
“anticipate”, “seek”, intend”, “believe”, “estimate”, “expect”,
“project”, “plan” or similar phrases may be deemed “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Actual results could differ from those projected in
any forward-looking statements due to numerous factors. Such factors
include, among others, the inherent uncertainties associated with new
projects, the future US and global economies, the impact of competition,
and the Company’s reliance on existing regulations regarding the use
and development of cannabis-based products. These forward-looking
statements are made as of the date of this news release, and we assume
no obligation to update the forward-looking statements, or to update the
reasons why actual results could differ from those projected in the
forward-looking statements. Although we believe that any beliefs, plans,
expectations and intentions contained in this press release are
reasonable, there can be no assurance that any such beliefs, plans,
expectations or intentions will prove to be accurate. Investors should
consult all of the information set forth herein and should also refer to
the risk factors disclosure outlined in our annual report on Form
10-12G, our quarterly reports on Form 10-Q and other periodic reports
filed from time to time with the Securities and Exchange Commission. For
more information, please visit www.sec.gov.
Contact:
[email protected]
888-777-4362
For more information, please visit the Company’s websites at:
MarijuanaCompanyofAmerica.com
hempSMART.com
NetworkNewsWire/MCOA
Corporate Communications:
NetworkWire (NW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
[email protected]
