TORONTO, April 13, 2018 (GLOBE NEWSWIRE) -- Maricann Group Inc. (CSE:MARI) (FRANKFURT:75M) (OTC:MRRCF) (“Maricann” or “the Company”) is pleased to announce it has entered into a definitive agreement with respect to the acquisition of all outstanding shares of Haxxon AG (“Haxxon”). The acquisition of Haxxon forms a critical element of the Company’s European expansion strategy. When complete, the acquisition will allow Maricann to enter the Swiss market through Haxxon’s production of feminized high CBD cannabis plants. Haxxon operates within a 6,000 sq. m. (~64,500 sq. ft.) indoor facility in Regensdorf, Switzerland, an industrial suburb of Zurich, located less than 10 minutes from the airport.
CEO Ben Ward commented: “Maricann will enhance Haxxon’s existing operations by investing 4,800,000 CHF to improve existing cultivation facilities, improving yield, then add extraction and post-processing capabilities to create finished products for inhalation as a tobacco substitute. These products will comply with both Swiss and European law with THC below 1% for the local market, and THC below 0.2% for the broader European market.”
Chief Scientific Officer Steven Bennett, PhD. stated earlier: “Indoor cultivation of high-quality Cannabis sativa strains (hemp) allows us to optimally control the environment to express and preserve the cannabinoid and terpenoid profiles desired for inhalation, which is not easily achieved with outdoor hemp. The cultivation of high CBD strains requires attention similar to high THC strains. In both cases, the best starting materials are required to make the most effective and sought-after products.”
The transaction is scheduled to close on or about May 15th, 2018, or as soon as possible, subject to regulatory approval and the approval of the holders of the Company’s 9% secured convertible debentures holding 66 2/3% in principal amount of the outstanding debentures being obtained by no later than May 31, 2018. Haxxon is being acquired for CHF 2,000,000 in cash and CHF 6,000,000 in common shares of the Company at the 20-day VWAP ending two trading days before closing.
About Maricann Group Inc.
Maricann is a vertically integrated producer and distributor of marijuana for medical purposes. The company was founded in 2013 and is based in Burlington, Ontario, Canada and Munich, Germany, with production facilities in Langton, Ontario, Canada where it operates a medicinal cannabis cultivation, extraction, formulation and distribution business under federal licence from the Government of Canada, and Dresden, Saxony, Germany. Maricann is currently undertaking an expansion of its cultivation and support facilities in Canada in a 942,000 sq. ft. (87,515 sq. m) build out, with a designed expected capacity of producing 95,000 kg (based on conservative estimates) of dry cannabis flower per year to support existing and future patient growth.
For more information about Maricann, please visit our website at www.maricann.com
Forward Looking Information
Certain statements in this document, including, without limitation, statements with respect to Haxxon, its future activities, including cultivation of feminized low THC cannabis plants, the transaction, the future designed production capacity of Maricann’ expanded facility and other subjects, contain forward-looking statements which can be identified by the use of forward-looking terminology such as “believes”, “expects”, “may”, “desires”, “will”, “should”, “projects”, “estimates”, “contemplates”, “anticipates”, “intends”, or any negative such as “does not believe” or other variations thereof or comparable terminology. No assurance can be given that potential future results or circumstances described in the forward-looking statements will be achieved or will occur. By their nature, these forward-looking statements, necessarily involve risks and uncertainties, including those discussed herein, that could cause actual results to significantly differ from those contemplated by these forward-looking statements. Such statements reflect the view of the Company with respect to its operations, expansion project, Haxxon, Haxxon’s future activities, the transaction and other future events, and are based on information currently available to the Company and on assumptions, which it considers reasonable. In the case of Haxxon future activities, management has based its statements in part on current and historical activities of Haxxon and assumed its business will be successfully continued, expanded and integrated to Maricann’s business. In the case of the Company’s expected designed production capacity for its expansion project facility, the expectations of management are based on the designs and plans of the new facility and assumes it will be successfully completed, licensed and operate as planned. Management cautions readers that the assumptions relative to the future events, several of which are beyond Management’s control, could prove to be incorrect, given that they are subject to certain risk and uncertainties, and that actual results may differ materially from those projected. Factors which could cause results or events to differ from current expectations include, among other things: inability for Maricann to integrate Haxxon and realize the benefits of the acquisition of Haxxon, fluctuations in operating results; the impact of general economic, industry and market conditions; the ability to recruit and retain qualified employees; fluctuations in cash flow; increased levels of outstanding debt and obligations under a capital lease; failure to obtain all necessary regulatory approvals; risks inherent to building and bringing into production new facilities; uncertainties with respect to estimated production capacity based on designs and plans; expectations regarding market demand for particular products and the dependence on new product development; the impact of market change; and the impact of price and product competition and other risks identified in the Company’s latest annual information form and other disclosure documents filed under its profile at www.sedar.com. Management disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.
The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.