NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH UNITED STATES NEWSWIRE SERVICES
TORONTO, ON – April 23rd, 2015
PharmaCan Capital Corp. (TSX-V: MJN) (“PharmaCan”) is pleased to announce today that its wholly-owned subsidiary, In The Zone Produce Ltd. (“In The Zone”) has entered into a strategic partnership with NWC Inc. to expedite the development and expand the scope of its operations at its 14 acre parcel of land in the Okanagan Valley, BC.
“This is a great milestone for In The Zone, and an important step towards it becoming a meaningful and consistent producer of quality assured medicinal marijuana under the MMPR program” said Paul Rosen, PharmaCan’s President and CEO. Mr. Rosen stated, “This partnership provides the funds to accelerate the expansion and enhancement of In the Zone’s operations. It has the added benefit of bringing outstanding executive talent to the In The Zone team, and taken together we are confident that this capital and expertise will fortify In The Zone”.
On February 26th, 2015 In the Zone’s Marihuana for Medical Purposes Regulations (“MMPR”) license was renewed by Health Canada for a one year term.
Under the terms of the deal PharmaCan will receive $3,000,000 of cash upon closing and a further $2,000,000 as certain milestones are achieved. Additionally, the purchaser has committed to spend $20,000,000 on the development and construction of a world class production facility. PharmaCan’s ownership of In The Zone will transition to its partners based upon milestones that include the completion of construction and receiving all of the necessary regulatory approvals. Once the transaction is completed and all milestones are met PharmaCan will retain a 20% ownership interest of In The Zone. “This transaction is consistent with our strategy to build Canada’s foremost diversified portfolio of licensed medical marijuana producers across Canada” said Mr. Rosen. “Our intention has always been to seek and find a strategic operating partner that would provide In The Zone with the greatest opportunity to achieve success in the MMPR. This partnership accomplishes that and we are excited to once again be fueling the growth of the industry as we have previously done with the Peace Naturals Project, the Whistler Medical Marijuana Company and others in the industry.”
PharmaCan continues to be presented with numerous exciting investment opportunities in this rapidly growing industry. The proceeds from this transaction will allow PharmaCan to continue to identify and make investments that have the potential to generate high rates of return for our shareholders through the prudent and opportunistic deployment of capital to growth oriented companies.
The transaction is expected to close on or before May 30, 2015. Completion of the proposed transaction is subject to a number of conditions and regulatory approval including Health Canada and Exchange acceptance. There can be no assurance that the transaction will be completed as proposed or at all.
PharmaCan is a company in the business of investing in companies either licensed, or actively seeking a license, to produce medical marijuana pursuant to Canada’s Marihuana for Medical Purposes Regulations (“MMPR”). PharmaCan has a diversified portfolio of investments including investments in three of the seventeen companies that are listed on Heath Canada’s website as licensed to produce and sell medical marijuana as well as another two of the eight companies that are listed on Health Canada’s website as licensed to produce medical marijuana.
About In The Zone
In the Zone is a Licensed Producer of medical marihuana under Canada’s MMPR program. Its facility resides on a 14-acre parcel of land owned by PharmaCan Capital in the Okanagan Valley in British Columbia.
About NWC Inc.
NWC Inc. is a Canadian corporation with an experienced industry operating team supported by institutional capital.
Investor & Media Relations
Paul Rosen, PharmaCan Capital Corp.
Phone: (416) 504-0004
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