Marijuana Company of America Signs Letter of Intent to Cultivate Large Hemp Farm in California
ESCONDIDO, Calif., May 14, 2019 (GLOBE NEWSWIRE) -- via NetworkWire -- MARIJUANA COMPANY OF AMERICA, INC., (“MCOA” or the “Company”) (OTCQB: MCOA), an innovative hemp and cannabis corporation, announced today that the Company has signed a Letter of Intent (“LOI”) with Essence Farms, LLC, (“Essence”) to form a joint venture (“JV”) called Riverside Hemp Project to run farming operations in California for the purpose of growing, cultivating, manufacturing, extracting and selling legal hemp and hemp-derived CBD.
Through the agreement, Marijuana Company of America will provide hemp seeds, genetics, management of operations and standard operating procedures. Essence, a cultivator and land owner, will provide all necessary licenses for the legally compliant growth and sale of hemp in Riverside, California.
“MCOA strives to be a leader in producing and distributing hemp, and we believe this joint venture will allow the Company to further its vision by establishing itself as a premier company in the hemp sector,” said Don Steinberg, Chief Executive Officer of Marijuana Company of America. “With the ongoing return of net profits this project is expected to provide MCOA, we are confident that signing this Letter of Intent is another strategic step for the Company and we look forward to expanding further in both the cannabis and hemp markets in California. If all goes according to plan, this will by far be the most financially successful venture the Company has been involved in.”
Marijuana Company of America will receive an 80% return of net profits for the JV on an ongoing basis, as well as a long-term lease on the property with favorable lease terms. The project includes up to 500 usable acres of land in California’s Riverside County that has sufficient water and power and is specifically suited for large-scale cultivation. The Company is in the process of sourcing the highest quality seeds that will yield a high percentage of CBD with legally compliant low levels of THC. It is projected that each acre will produce 2,500 pounds of hemp biomass. Based on prevailing fair market rates at this time, the biomass can be sold for approximately $35 a pound. If the Company processes the biomass as it intends to do, at least in part, the biomass will produce a significantly higher financial return. Additionally, the property is equipped with several large structures that are suitable for the storage and drying of the hemp plants. A highly experienced cultivation team has been engaged to manage the operations and cultivation of the farm.
Consummation of the transaction remains contingent upon satisfactory completion of due diligence by both parties and completion and agreement on all final terms and conditions of the engagement. Further details on the terms of this LOI are available in the Company’s filing, which can be accessed at www.sec.gov.
About Marijuana Company of America, Inc.
MCOA is a corporation that participates in: (1) product research and development of legal hemp-based consumer products under the brand name hempSMART™, which 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 recreational 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.
About Our hempSMART Products Containing CBD
The United States Food and Drug Administration (FDA) has not recognized CBD as a safe and effective drug for any indication. Our products containing CBD derived from industrial hemp are not marketed or sold based upon claims that their use is safe and effective treatment for any medical condition as drugs or dietary supplements subject to the FDA’s jurisdiction.
This news release contains “forward-looking statements” that 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-K, 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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Released May 14, 2019