Vancouver, British Columbia--(Newsfile Corp. - March 15, 2017) - Matica Enterprises (CSE: MMJ) is advancing its plans to become a Licensed Cannabis Producer. The company has signed a letter of intent to acquire a 70% interest in a late stage applicant under the Access to Cannabis for Medical Purposes Regulations.
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The target company's 10,000-square foot leased facility, in an industrial park outside of Montreal, Quebec, recently completed the security clearance stage. Matica plans to compete the due diligence and proceed to a definitive agreement on or before April 5, 2017, at which time it will acquire an initial 65% interest, with the right to earn an addition 5%.
Boris Ziger, CEO, stated: "We have been kicking the tires on quite a few facilities over the past few months and are pleased with what we have seen in Quebec. Our past experience has shown that this industry is very much about the people and we are confident that we have found a group that we can work with to build a successful business for our shareholders."
Matica paid $50,000, and upon signing of the definitive agreement, will pay an additional $135,000 and issue 6 million shares. After completion of the review stage, Matica will be required to provide funding of $2.2 million to complete the build out of the medical marijuana facility in preparation for Health Canada inspection. Assuming the company receives its licensing from Health Canada, Matica will pay another $400,000 within 30 days to acquire the additional 5%, bringing its total interest to 70%. After completing of 12 months of production at the facility, Matica will make a final payment of $400,000.
The shares are trading at $0.055 and with 119.5 million shares outstanding, the company is capitalized at $6.6 million.
For more information, please visit the company's website www.maticaenterprises.com or contact Boris Ziger, CEO, at 416-304-9935 or by email at [email protected]
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