Maple Leaf Green World Inc. (OTC: MPEFF) (TSX-V: MGW), an aspiring licensed producer under Canada’s MMPR program, recently announced a letter of intent with a new collective entity to provide growing facilities in California and consulting services. With approximately 250 membership patients, the collective is a non-profit medical cannabis collective for qualified patients.
“We are excited to have this opportunity to serve this new collective with our expertise in the greenhouse and cannabis growing technology,” said Maple Leaf Green World Inc. President Raymond Lai in the press release announcing the new agreement with the California-based collecive. “It will definitely mark as a milestone for our first step into the U.S. medical marijuana industry.”
Under the terms of the agreement, Maple Leaf will build a growing facility consisting of six cold frames in Southern California with the capacity to house about 400 marijuana plants in two phases. The company will be responsible for financing about $500,000 to construct the facility and lease it to the collective after the first phase begins in 2015 while also providing consulting services.
The joint venture agreement will be in place for 10 years with the option to renew for another ten year. If demand increases due to higher membership rates, the company may also expand the facility or build another facility upon the collective’s request. The collective will be responsible for the daily operations of the facility, including supplying cannabis to its medical marijuana members.
Shares of Maple Leaf Green World Inc. traded flat on Wednesday, October 29, 2014 following the news release.
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