Marijuana Company of America Portfolio Company Signs Letter of Intent to Significantly Build Out Cannabis Facility for Distribution, Delivery and Manufacture
Natural Plant Extract of California’s Subsidiary Joins Forces to Form Magnolia Extracts
ESCONDIDO, Calif., June 10, 2019 (GLOBE NEWSWIRE) -- via NetworkWire – MARIJUANA COMPANY OF AMERICA, INC., (“MCOA” or the “Company”) (OTCQB: MCOA), an innovative hemp and cannabis corporation, is pleased to announce the signing of a Letter of Intent (“LOI”) between Northern Lights Distribution LLC (“NLD”) with Alpha Private Equity & Capital LLC (“Alpha”) to form a joint venture (“JV”) called Magnolia Extracts LLC (“Magnolia”) pursuant to large-scale expansion operations to begin distribution, delivery and manufacturing of its cannabis products in the city of Lynwood, California.
Marijuana Company of America announced in April 2019 that the Company had officially acquired a 20% ownership interest and signed a joint venture agreement with Natural Plant Extract of California (NPE) to establish a premier cannabis delivery company called Viva Buds. NLD, a subsidiary of NPE, has entered into this partnership and will cover costs up to $1.5 million in phased expenditures, allocated to significantly build out a new production facility and utilize the 18,000 square foot building space to create greater efficiency and capacity for its operations.
“As our portfolio of legal cannabis and industrial hemp investments and joint ventures represent a significant portion of our growth strategy, we believe this step represents a strong move forward to establishing our foothold in the market,” said Don Steinberg, Chief Executive Officer of Marijuana Company of America. “This allows us to advance into the next phase of our business plan through NPE, gaining access to over 18,000 square feet of building space. We are confident this joint venture will serve very beneficial for us as well as our investment partner, NLD.”
Consummation of the transaction remains contingent upon satisfactory completion of due diligence by both parties and completion of, and agreement on, all final terms and conditions of the engagement. Further details on these terms of this LOI are available in the Company’s filing, which can be accessed at www.sec.gov.
About Natural Plant Extracts of California
NPE is a fully licensed cannabis manufacturing, distribution and non-storefront retail delivery. The Company has secured its licenses with the state of California and city of Lynwood, CA. For more information about the Company, please visit its website at https://nldistribution.com. The owners and founders of NPE are marijuana industry veterans with decades of experience in establishing retail, manufacturing and distribution of cannabis in California, including obtaining the first retail dispensary licenses in Los Angeles, CA.
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.
Corporate Communications Contact:
New York, New York
Released June 10, 2019