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
SOURCE: Tweed Marijuana Inc.
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