Marijuana Company of America and Global Hemp Group to Form Joint Venture With Space Cowboys' Colorado Farm
ESCONDIDO, CA -- (Marketwired) -- 10/10/17 -- MARIJUANA COMPANY OF AMERICA INC. ("MCOA" or the "Company") (OTC: MCOA), an innovative hemp and cannabis corporation, and Global Hemp Group (CSE: GHG) (FF: GHG) (OTC: GBHPF), (collectively the "Companies"), are pleased to announce that they have jointly entered into a letter of intent with Space Cowboys, Inc. ("Space Cowboys") for the purposes of forming a joint venture (the "Joint Venture"). Space Cowboys is an existing fully licensed and compliant hemp-derived cannabinoid producer in Colorado.
Pursuant to the terms of the letter of intent and subject to the Companies obtaining sufficient financing, the Companies will invest US$2.5 Million in exchange for a 25% equity interest in Space Cowboys. The investment funds will be used to expand Space Cowboys' cultivation operation.
Space Cowboys is in its fourth year of operation and is in full compliance with Colorado state law and the Colorado Department of Agriculture. The business consists of both indoor and outdoor cultivation of highly concentrated CBD hemp on properties located in Longmont and Loveland, Colorado. Space Cowboys' current hemp crops will be harvested in the latter part of October and prepared for extraction of the high-value cannabinoids.
In addition to the potential revenue streams generated from Space Cowboys' ongoing high cannabinoid hemp production, this Joint Venture will provide the opportunity to be a part of a legal operation with the extensive knowledge and experience required to cultivate and process industrial hemp into raw cannabinoids. For MCOA, it will also provide a consistent cannabinoid supply from a known source and trusted partner for its hempSMART™ product line. This will also enable Global Hemp Group to develop its Hemp Agro-Industrial Zone concept.
"MCOA has always been interested in developing hemp farms and processing here in the United States. By initiating this Joint Venture, the Company will accomplish this objective along with securing its supply chain of raw cannabinoids. It is an important step in the continued development of the hempSMART brand, which distributes a hemp-based Cannabinoid product line," said CEO, Donald Steinberg.
The transaction is subject to a number of conditions, including but not limited to, completion of satisfactory due diligence, entry into a definitive agreement and receipt of any necessary regulatory approvals. There is no assurance such conditions will be met or that the Companies will be able to secure the financing necessary to complete the transaction on acceptable terms or at all.
About Space Cowboys
Space Cowboys operates hemp farms in the state of Colorado for the primary purpose of Cannabinoid production. Space Cowboys' operations are in full compliance with Colorado state law and the Colorado Department of Agriculture.
About Global Hemp Group Inc.
Global Hemp Group ("GHG") is a publicly traded company founded in 2012, headquartered in British Columbia, Canada with base operations in Montreal and Southern California. The Company is focused on the production and processing of hemp and cannabis, and collaboration with companies that will enable GHG to develop and implement the Hemp Agro-Industrial Zone concept. Through partnerships, joint ventures and acquisitions, the Company will capture cash flow, revenues, and establish a greater collective valuation.
About Marijuana Company of America, Inc.
MCOA is a corporation which participates in: (1) product research and development of legal hemp-based consumer products containing CBD 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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Source: Marijuana Company of America, Inc.
Released October 10, 2017