VANCOUVER. BC / ACCESSWIRE / March 25, 2015 / Wildflower Marijuana Inc. (CSE: SUN) (the "Company") announces it has entered into a Letter of Intent to form a Licensing Joint Venture (the "Joint Venture") with a licensed marijuana producer in Washington State. The Joint Venture is being formed to develop Wildflower branded products which will then be marketed and distributed by our Joint Venture partner.
Pursuant to the Joint Venture, Wildflower will grant an exclusive license to manufacture, market and sell certain products, recipes, retail merchandise and promotional materials under the Wildflower brand in the State of Washington. As part of the agreement, Wildflower will issue 1,303,800 shares and pay $250,000 to its Joint Venture partner and contribute $1,100,000 in working capital to develop the brand. In consideration, Wildflower will receive a licensing fee equal to 20% of the gross sales of Wildflower branded products. Wildflower's joint venture partner has been in the marijuana business since 1998 and has operated a medical dispensary since 2012. The partner has agreed to negotiate in good faith combining these operations into the Joint Venture at such time as the law permits. Washington State is currently developing new rules regulating medical dispensaries. Further, Wildflower will work closely with its Joint Venture partner to implement Wildflower's Quality Assurance Program, Standard Operating Procedures and Good Manufacturing Practices to ensure the highest quality is produced for the Wildflower brand. As part of the transaction, Wildflower has agreed to pay a commission in accordance with regulatory guidelines.
As Wildflower's Joint Venture partner is currently producing and selling marijuana and related products, once the transaction closes Wildflower can immediately commence sales of Wildflower branded products. Work has already begun to identify new and unique product lines.
Pursuant to the Joint Venture all production from the license will be sold under the Wildflower brand. In Washington State, licensing requirements stipulate that all license holders and their shareholders, directors, officer and financiers be Washington State residents. While Wildflower cannot have any interest in any license in Washington State it can license its brand and provide consulting services to ensure all products associated with the Wildflower brand are of the highest quality.
The Washington market has approximately 370,000 cannabis users that consume approximately 175 metric tons (175,000,000 grams) of marijuana annually according to a study by the Rand Corporation, approximately double what was predicted by the State of Washington. In comparison, the legal Canadian medicinal market has approximately 59,000 registered patients. Wildflower's Joint Venture partner is an I-502 production and processing licensee specializing in the manufacturing of cannabis concentrates. These concentrates will provide the cornerstone to many of the Wildflower product lines such as infused edibles, drinks, oils and topical products to name a few. The production license is a Tier 2 license and is expected to produce approximately 1200 pounds of cannabis in 2015. The processing license allows Wildflower's Joint Venture partner to make other products from cannabis and distribute to all retail outlets in Washington State. Further, the processing license allows the holder to purchase wholesale cannabis from other producers.
President and CEO William MacLean states, "After many years of hard work I am excited that we will finally get to see the Wildflower brand available on store shelves. I know consumers will embrace the Wildflower product line which will transcend many different demographics. This is the first step in realizing our goal of making Wildflower a global marijuana brand. I would like to thank the Wildflower team for their diligence and commitment to making this vision a reality. In particular, Scott Walker VP of Corporate Development, whose vast contacts and expertise within the industry has opened the door to this and many more markets for the Wildflower brand."
About Wildflower Marijuana Inc.
Wildflower is a cannabis company focused on developing and designing branded products in the marijuana sector. In this regard, Wildflower works exclusively in Washington State where such activity is permitted and regulated by State law, through entities which hold licenses for such activities. Further, Wildflower is advancing two applications to grow and distribute medical marijuana under an MMPR license with Health Canada. Wildflower's proprietary growing system is designed to maximize crop yields and consistently produce pure clean pharmaceutical grade BC cannabis for patients and cannabinoid research.
On Behalf of the Board of Directors
"William MacLean"
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William MacLean
Director and CEO
THIS NEWS RELEASE, PROVIDED PURSUANT TO APPLICABLE CANADIAN REQUIREMENTS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS ABSENT REGISTRATION OR APPLICABLE EXEMPTION FROM REGISTRATION REQUIREMENTS.
Cautionary and Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. Forward-looking statements and information are often, but not always, identified by the use of words such as "appear", "seek", "anticipate", "plan", "continue", "estimate", "approximate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions.
Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the marijuana industry in general such as operational risks in growing; competition; incorrect assessment of the value and potential benefits of various transactions; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals and changes in legislation, including but not limited to tax laws and government regulations. Accordingly, readers should not place undue reliance on the forward-looking statements, timelines and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive.
The forward-looking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws or the Canadian Securities Exchange. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.
The Canadian Securities Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this press release.
For further information please contact:
Doug Kerr
Telephone: 604-315-4400
SOURCE: Wildflower Marijuana Inc.
