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.
Acquisition Summary
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.
SOURCE Tweed Marijuana Inc.