MJardin Group, Inc.(CSE: MJAR) (OTCQX: MJARF), a leader in premium cannabis production, announced today that subsequent to its recently announced non-binding Letter of Intent (“LOI”) with Peguis First Nation (“Peguis”) in connection with its Warman cultivation facility located in Winnipeg, Manitoba, the Company has entered into an agreement whereby Peguis has agreed to pay the full amount of the purchase price in advance of the closing of the transaction pursuant to a promissory note.
MJardin has received the C$11 million payment from Peguis, which immediately allows the Company to commence Phase 2 construction and expedite the path to full production of the Warman facility.
On August 28, 2019, MJardin announced the signing of a non-binding LOI with Peguis concerning a joint venture (“JV”) in connection with the operation and ownership of its Warman cultivation facility. Under the terms of the agreement, Peguis (51%) will purchase existing land and buildings from MJardin (49%) for C$11 million and execute a concurrent long-term lease back to the JV. Peguis will additionally fund the capital expenditures required to complete Phase 2 of the facility for approximately C$20.5 million.
Design plans for the Warman facility were released last month and include a hybrid facility encompassing indoor and greenhouse production capacity, along with full EU GMP certified extraction, processing and packaging capabilities. Phase 2 of the build-out will see the facility reach production capacity of approximately 4,500 kg of high-quality dried flower and 800 litres of bulk oil for use in refined products by Q2 2020.
About MJardin Group
MJardin is a cannabis management platform with extensive experience in cultivation, processing, distribution and retail. For over 10 years, MJardin has refined cultivation methodologies, developed state of the art facilities and implemented vertical integration for and on behalf of license owners. MJardin is based in Denver, Colorado and Toronto, Canada. For more information, please visit www.mjardin.com.
The CSE has not in any way passed upon the merits of and has neither approved nor disapproved the contents of this news release.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
This news release contains forward-looking information based on current expectations. Statements about, among other things, future developments and the business and operations of MJardin, our production capacity, our production results, trading of MJardin’s shares on the OTCQX Best Market, the receipt of any pending regulatory approvals or licenses, the growth of our global footprint and our intentions to leverage our scale for continued organic growth and to pursue strategic investments are all forward-looking information. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Such factors include, but are not limited to: our ability to identify and pursue growth, financing and other strategic objectives, and the regulatory and economic environments in the jurisdictions we operate or intend to operate or investment in. Although such statements are based on management’s reasonable assumptions at the date such statements are made, there can be no assurance that the proposed acquisition will occur and that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on the forward-looking information. MJardin assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by applicable law.