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Message: Marijuana Company of America Receives Financing for Joint Venture in Washington State
ESCONDIDO, CA--(Marketwired - Jul 19, 2017) - MARIJUANA COMPANY OF AMERICA INC. ("MCOA" or the "Company") (OTC: MCOA), an innovative cannabis and hemp marketing and distribution Company, is pleased to announce that it has contributed the first installment of capital to Bougainville Ventures, Inc. ("BV") in partial satisfaction of the joint venture agreement entered into earlier this year in Washington State.
MCOA received $375,000 in its first round of financing. This investment will contribute to funding the development of a state-of-the-art 30,000 sq. ft. greenhouse grow facility in Oroville, Washington. Once completed, the greenhouse facility will accommodate a cannabis production and processing tenant with a Tier 3, I-502 license with significant experience growing cannabis. The total principal amount of the convertible note that MCOA executed with its financing partner is $752,500, with a 16 month term and 10% annual interest rate. Additional rounds of financing will be received as part of this note, which MCOA intends to invest in BV in satisfaction of the terms of its JV agreement.
As turnkey landlords, MCOA and BV look to provide an ideal cultivation environment that their current tenant can move into in Q3, and be fully operational and revenue producing in early Q4. As more states legalize the cultivation and consumption of cannabis, MCOA intends to replicate this business model and build the Company's real estate portfolio and increase its revenue.
Donald Steinberg, MCOA President and CEO, said, "I am very pleased that we obtained the financing to start our operations in Washington. We are projecting that this joint venture will soon be profitable and be a model that we can replicate in other states and countries. We are also happy to establish a relationship with a financing partner that is interested in supporting joint venture projects for MCOA in the future."
The closing of its first round of financing is a significant step in completing the Company's JV partnership that was formed to construct two greenhouses, provide management services and a commercial lease to an I-502 licensed grower in Washington State.
Separately, the Company announced effective July 1, 2017, the establishment of a new corporate office located at 1320 West Valley Parkway, Escondido, California, 92029, that will include space for the Company's back office support team for its HempSMART brand, and provide office space for some Company executives.
ABOUT BOUGAINILLE VENTURES, INC.
Bougainville Venture Inc. is in the core business of converting irrigated farmland that was traditionally used to grow marginally profitable feed crops, to greenhouse-equipped farmland used to grow luxury crops with a primary focus on high-density and high-yielding crops. Bougainville is an agricultural services company that focuses on providing growers with state-of-the-art computer controlled greenhouses and processing facilities. Bougainville offers fully built out turnkey solutions to tenant-growers and provides growing infrastructure, as well as landlord services for licensed I-502 producers and processors in the state of Washington.
SAFE HARBOR STATEMENT
This release contains forward-looking statements that are based upon current expectations or beliefs, as well as a number of assumptions about future events. Although we believe that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, we can give no assurance or guarantee that such expectations and assumptions will prove to have been correct. Forward-looking statements are generally identifiable by the use of words like "may," "will," "should," "could," "expect," "anticipate," "estimate," "believe," "intend," or "project" or the negative of these words or other variations on these words or comparable terminology. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties, including but not limited to: adverse economic conditions, competition, adverse federal, state and local government regulation, international governmental regulation, inadequate capital, inability to carry out research, development and commercialization plans, loss or retirement of key executives and other specific risks. To the extent that statements in this press release are not strictly historical, including statements as to revenue projections, business strategy, outlook, objectives, future milestones, plans, intentions, goals, future financial conditions, events conditioned on stockholder or other approval, or otherwise as to future events, such statements are forward-looking, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this release are subject to certain risks and uncertainties that could cause actual results to differ materially from the statements made.
Marijuana Company of America, Inc.
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