Tweed marks MMPR first year anniversary with acquisition
OTTAWA, June 19, 2014 /CNW/ - Tweed Marijuana Inc. (TSXV: TWD) ("Tweed" or the "Company"), is pleased to announce the acquisition of Prime1 Construction Services Corp. ("Park Lane"), an applicant currently proceeding through the Health Canada review process to become a Licensed Producer under the Canadian Marihuana for Medical Purposes Regulations ("MMPR"). As a result of this acquisition, Tweed seeks to become the first geographically diversified, multi-location, multi-licensed public operation in Canada.
The acquisition, which will add over 350,000 square feet of greenhouse facility located in Niagara-on-the-Lake, will complement Tweed's current 168,000 square foot indoor facility which is licensed to produce up to 15,000 kg of marijuana per year, while diversifying into a multi-platform producer with indoor and greenhouse production. Through this transaction, Tweed will bolster its ability to provide an industry leading selection of varieties and price points, and create license redundancy to provide investors and customers with enhanced security and reliability of production.
In consideration for the acquired shares in Park Lane, Tweed will pay $3,600,000 cash on closing and up to an additional $100,000 upon achieving certain milestones. Tweed will also issue up to 519,031 shares if and when specific milestones are achieved over the next 12 months. Tweed is optimistic that a portion of the purchase price will be eligible for traditional debt financing secured by the facilities and land owned by Park Lane.
"Tweed is pleased to announce the first material transaction that begins to consolidate the sector on the first anniversary of the issuance of the MMPR," commented Tweed co-founder and Chairman, Bruce Linton. "The opportunity for Tweed to become a geographically distributed and multi-Licensed Producer is extremely exciting and builds on Tweed's commitment to provide a reliable supply of the highest quality medicine in Canada. This acquisition, coupled with our medical education program and exceptional customer care team, positions Tweed to become a major force in an exciting and emerging market."
About Tweed Marijuana Inc.
Tweed Marijuana Inc. is a TSX Venture Exchange listed company. Its wholly owned subsidiary, Tweed Inc., is a licensed producer of medical marijuana in Canada. The principal activities of Tweed are the production and sale of marijuana out of its facility in Smiths Falls, Ontario as regulated by the Marihuana for Medical Purposes Regulations.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notice regarding Forward Looking Statements
This news release contains forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Tweed Marijuana Inc. or Tweed Inc. to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Examples of such statements include: (A) predictions of future demand; (B) plans to increase capital expenditure and construction related expenses; (C) anticipated production yields; (D) completion of construction and availability of new production rooms; and (E) forecasted available product selection. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Such forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to: the ability to obtain any necessary financing; the economy generally; the yield from Tweed's marijuana growing operations; consumer interest in products; competition; regulation and anticipated and unanticipated costs and delays. Although Tweed Marijuana Inc. has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Readers should not place undue reliance on forward-looking statements. The factors identified above are not intended to represent a complete list of the factors that could affect Tweed Marijuana Inc. or Tweed Inc. Additional factors are noted under "Part IV - Description of Risk Factors Associated with the Acquisition" in the Filing Statement of Tweed Marijuana Inc. dated as of March 25, 2014 and available at www.SEDAR.com. The forward-looking statements included in this news release are made as of the date of this news release and Tweed Marijuana Inc. does not undertake an obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.
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