Marijuana Company of America Completes Financing for Cultivation Facility in Washington State
ESCONDIDO, CA–(Marketwired – Nov 9, 2017) – MARIJUANA COMPANY OF AMERICA INC. (“MCOA” or the “Company“) (OTC: MCOA), an innovative hemp and cannabis corporation, is pleased to announce that it has completed its financing of $800,000 in cash and 15 million shares of the Company’s common stock in full satisfaction of the amended terms of the joint venture agreement with Bougainville Ventures, Inc. (“BV”).
Per the terms of the agreement and the completion of funding, the Company has secured a 50% equity stake in BV-MCOA Management, LLC and will receive 50% of the net profits from leasing the facility, which will accommodate a contracted cannabis production and processing tenant with an approved Tier 3, I-502 license. As turnkey landlords, MCOA and BV look to provide an ideal cultivation environment for their future tenant and it is anticipated that construction of the greenhouse will be completed in Q1 2018.
On November 1, 2017, the Company entered into a second Securities Purchase Agreement with St. George. The Secured Convertible Promissory Note has a principal amount of $601,420.00 with the right to purchase at any time on or after November 1, 2017, until November 1, 2022, twenty-two million (22,000,000) shares of Company’s common stock.
Donald Steinberg, MCOA CEO said, “We are pleased to complete funding for this joint venture and we are looking forward to the beginning of the construction of the greenhouses. As more states, most notably California in 2018, legalize recreational cannabis, MCOA is exploring opportunities to replicate this business model and develop our real estate portfolio.”
This joint venture project is solely for the purpose of cultivation and processing of legal marijuana within the State of Washington only and not beyond its borders. The Company will lease the turnkey property to the licensed tenant, thus acting solely as a landlord.
The original terms of the JV agreement with BV called for MCOA to fund $1,050,000 in cash. Both parties agreed to reduce the cash amount to $800,000 and issue 15 million shares of restricted common stock on November 7, 2017.
About Bougainville Ventures, Inc.
Bougainville Venture Inc. is in the core business of converting irrigated farmland that was traditionally used to grow marginally profitable feed crops, to greenhouse-equipped farmland used to grow luxury crops with a primary focus on marijuana. Bougainville is an agricultural services company that focuses on providing growers with state-of-the-art computer controlled greenhouses and processing facilities. Bougainville offers fully built out turnkey solutions to licensed I-502 tenant-growers and luxury crop growers who will lease the facilities for production and processing. Bougainville does not “touch the plant” and only provides growing infrastructure as a landlord for licensed marijuana growers in the state of Washington. Bougainville has a strong management team with relevant experience and education in place with a focus on build-out and occupancy of its planned greenhouses in Oroville, WA. Strategic plans to expand its land bank, greenhouse campus and I-502 tenant-grower clients are scheduled for expanding operations.
About Marijuana Company of America, Inc.
MCOA is a corporation which participates in: (1) product research and development of legal hemp-based consumer products under the brand name “hempSMART™”, that targets general health and well-being; (2) an affiliate marketing program to promote and sell its legal hemp-based consumer products containing CBD; (3) leasing of real property to separate business entities engaged in the growth and sale of cannabis in those states and jurisdictions where cannabis has been legalized and properly regulated for medicinal and recreations use; and, (4) the expansion of its business into ancillary areas of the legalized cannabis and hemp industry, as the legalized markets and opportunities in this segment mature and develop.
Forward Looking Statements
This news release contains “forward-looking statements” which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as “anticipate”, “seek”, intend”, “believe”, “estimate”, “expect”, “project”, “plan”, or similar phrases may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company’s reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-12G, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.
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Marijuana Company of America, Inc.