April 6, 2017 / TheNewswire / Toronto, Ontario - Matica Enterprises Inc. (MMJ-CSE) (39N - Frankfurt) (MQPXF - OTC PINK) ("Matica" or the "Company") is pleased to report that further to our News Release of March 13, 2017 the Company has signed a definitive agreement (" the agreement") based on the letter of intent ("LOI") signed with RoyalMax Biotechnology Canada Inc. ("RoyalMax"). This agreement allows for Matica to become a majority owner (70%) of a late stage applicant under the Access to Cannabis for Medical Purposes Regulation ("ACMPR"). Matica will supply funding and resources to build out the production facility in preparation for inspection by Health Canada.
This is an important milestone for Matica. With this new acquisition, Matica has taken a meaningful step towards building a state of the art medical marijuana growing facility. RoyalMax is a late stage applicant under ACMPR and has completed the security clearance stage and is in the review stage. The 10,000 sq. ft. facility is located in an industrial park in Dorval Quebec, just outside of Montreal. Matica management has negotiated, on favourable terms, a 20 year extension to the current lease which was set to expire in 2020. The size of the site will permit expansion of the building footprint by as much 20,000 sq. ft. As the Company progresses, the size of the canopy could grow to over 40,000 sq. ft., with a two story expansion of this facility.
Management revisited the Dorval facility this week and met with contractors and team members who will be responsible for operating the facility once it has been completed and licensed. Preparations are now underway to ready the property for build out upon RoyalMax clearing of the review stage. Accounting controls and procedures are being put in place to ensure a smooth build out and transition to producer.
Boris Ziger, CEO, commented: "We are excited about working with the people at RoyalMax and are eager to begin the build out the facility and ready it for inspection. The potential to expand the site was an important element in our decision to choose the Dorval facility. The other important element was the people we met. We have a fantastic team!"
Under the terms of the agreement, $185,000 is due on signing of the agreement and Matica will the issue 6,000,000 common shares of Matica, as directed by the Sellers. After completion of the review stage, Matica will be required to provide funding of $2,200,000 to complete the build out of the medical marijuana facility in preparation for inspection by Health Canada. This will earn Matica an initial sixty-five per cent (65%) interest. Within 30 days of Matica receiving notification of licensing by Health Canada, Matica will pay an additional $400,000 and Matica will receive an additional five percent (5%) interest for a total seventy (70%) interest. After the completion of twelve (12) months of production at the facility, Matica will make a final payment of $400,000.
For more information on Matica please visit the website at: www.maticaenterprises.com.
On behalf of the Board of Directors
MATICA ENTERPRISES INC.
Boris Ziger, CEO & Chairman
The Company's filings are available for review at www.sedar.com and www.thecse.com.
Certain information in this press release may constitute forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Corporation assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Corporation. Additional information identifying risks and uncertainties is contained in the Corporation's filings with the Canadian securities regulators, which filings are available at www.sedar.com.
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