Spearmint Resources Inc. Signs LOI to Acquire a Payment Processing Technology Exclusive to Retail Marijuana Industry
May 07 2014 - 3:01AM
Marketwired
Spearmint Resources Inc. Signs LOI to Acquire a Payment Processing
Technology Exclusive to Retail Marijuana Industry
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 7, 2014) -
Spearmint Resources Inc. ("Spearmint" and the "Company")
(TSX-VENTURE:SRJ) has signed a letter of intent ("LOI") to acquire
a 50-per-cent interest in a payment processing technology for use
in the retail marijuana industry. The technology under development
includes a multi-user electronic wallet application for mobile
phones that enables consumers to securely and conveniently access
information, makes payments as well as receives payments to
facilitate marijuana commerce at the point of sale.
The potential acquisition is a foray into the field of companies
currently focused on participating in specific sectors of the North
American Medical Marijuana industry. This secure technology will be
available to users worldwide for use as a preloaded payment app on
either their mobile device or a prepaid loyalty card to purchase
their medicine.
"Banking is the most urgent issue facing the legal cannabis
industry today," said Aaron Smith, executive director of the
National Cannabis Industry Association in Washington, D.C. Saying
legal marijuana sales in North America could reach $3 billion this
year, Mr. Smith added: "So much money floating around outside the
banking system is not safe, and it is not in anyone's best
interest. Federal law needs to be harmonized with state laws."
Conrad Clemiss, CEO of SRJ stated, "This is an exciting sector
for the company to be investigating. While there is no guarantee of
success, based on our research, we are one of the first companies
potentially entering into this sector and in a unique position to
spearhead the movement into safe, secure and convenient point of
sale transactions."
There is no guarantee that the formal deal will get signed and
the LOI is subject to due diligence, execution of formal documents,
board approval and regulatory approval.
Regulatory regime
The possession, cultivation and distribution of marijuana remain
illegal at the federal level in the United States. While there has
been a federal policy to allow marijuana operations that are
compliant with state laws to remain in operation, state law
provides no protection against federal action. Should the U.S.
federal government take action, the potential for civil and
criminal consequences cannot be ignored. Due to the regulatory
regime in Colorado and other states, the structure of this
transaction must withstand state, federal and local scrutiny.
Further, the transaction may be subject to state and local
regulatory approval. Accordingly, the ability to consummate the
contemplated transaction may be beyond the company's control.
The company has no operating history and an evolving business
model. There can be no assurance that the company will achieve
profitability or obtain future financing. Demand for the company's
products is dependent on a number of social, political and economic
factors that are beyond its control. While the company believes
that demand for the products will continue to grow, there is no
assurance of such.
Neither the TSX Venture Exchange Inc. nor its Regulation Service
Provider (as that term is defined in the policies of the TSX
Venture Exchange Inc.) accepts responsibility for the adequacy or
accuracy of this press release.
If you would like to be added the SRJ email list please send an
email to info@spearmintresourcesinc.com.
Spearmint Resources Inc.Conrad ClemissDirector604 646
6903www.spearmintresourcesinc.com
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