Affinor Resources Inc. (OTC: RSSFF), an aspiring licensed producer of medical marijuana under Canada’s new MMPR and producer of other cash crops like Romaine lettuce and strawberries, recently announced an agreement to acquire 100% of a private company in the final stages of obtaining their MMPR license to grow medical marijuana in British Columbia, Canada.
“This agreement is an important step in our commitment to championing the production of medical marijuana for value added projects in Canada,” said President and CEO Sebastien Plouffe. “The acquisition helps demonstrate the strength of our management team to execute the business plan and get closer to production for the good of all shareholders.”
Under the terms of the agreement, the company will pay 2.55 million shares to Nick Brusatore – owner of 51% of the private company – and 2.65 million shares to additional shareholders owning the remaining 49% of shares. An initial 10% of the total will be issued now with the remaining 90% issued when the MMPR license is officially granted to Affinor by the Health Canada.
The private company already owns a fully functional production facility in British Columbia, with plans to work over the next three years to develop premium strains and optimize the facility to mass produce ultra-high quality products at the lowest possible prices.
Canada’s new MMPRs are meant to replace its aging MMAR regulations that were not adequately regulated, were left open for abuse, and lacked safety and quality controls. MMPR provides faster and easier access to medical marijuana with fewer safety concerns. So far, Health Canada has approved 13 licensed producers, including publicly traded companies like Tweed Inc. (CVE: TWD).
Shares of Affinor Resources were trading even during the early session on Friday, May 9, 2014 and are trading up 20% since being listed on the OTC Markets.
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