Toronto, Ontario / TheNewswire / May 23, 2017 - Matica Enterprises Inc. (MMJ-CSE) (39N - Frankfurt) (MQPXF - OTC PINK) ("Matica" or the "Company") is pleased to announce that the Company has reached a third party settlement with regards to the legal action taken against THC Dispensaries Canada Inc. ("THCD"), Francis MacMaster, CEO of THCD and other related parties.
An unrelated third party has agreed to purchase all of the outstanding shares of THCD and complete the build out of THCD's medical marijuana facility ("the facility") in preparation for a pre-licence inspection by Health Canada under the Access to Cannabis for Medical Purposes Regulation ("ACMPR"). THCD is one of several such facilities that the third party has engaged and is preparing for pre-licence inspection. Matica is to receive shares of the third party at a deemed value of $700,000 in two tranches of $350,000 each. The first tranche is to be issued on closing and the second and final tranche is to be issued on the date of issuance by Health Canada of an ACMPR cultivation license in the name of THCD.
In November 2015, Matica filed a Notice of Civil Claim in the Vancouver Registry of the Supreme Court of British Columbia naming THCD, Francis MacMaster, CEO of THCD and other related parties as defendants in an effort to recoup funds and damages suffered by Matica as a result of breaches by the defendants of the October 2014 Investment Agreement ("the Agreement").
In October 2014, the Company signed the Agreement with THCD, a Nova Scotia company for a proposed free standing medical marijuana growing facility. THCD did not complete the facility even though Matica provided funds over and above the $325,000 initial investment that was required by the Agreement. Matica forwarded a total of $565,000 to THCD and issued one million common shares of Matica at a deemed value of $130,000.
Boris Ziger, Matica CEO states, "This settlement brings to an end that whole chapter in the Matica story and allows Matica to move forward unencumbered. Furthermore, we are recouping the funds sent to THCD and can now apply them towards our new project in Quebec. This is a very positive conclusion for Matica."
Matica recently announced the Company signing of a letter of intent ("LOI") to earn a 70% interest in a late stage applicant under the Access To Cannabis For Medical Purposes Regulation ("ACMPR").
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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