Worldwide Marijuana Provides Corporate Update
January 14th, 2016
News, Top News
Worldwide Marijuana Inc. has provided the following corporate and industry update.
The relationship with the parties under letters of intent referred to in the company’s listing statement that have applications to become licensed producers continues to be strong. MedCann and Monashee Medical entered into acquisition agreements with Worldwide almost a full year before the corporation went public after the reverse takeover with Inexco. The assessment by the chief executive officer of Worldwide Marijuana has always been that the process of obtaining a licence from Health Canada would be a long, painstaking event, and that has proven to be true. The following is a summary of data received from Health Canada in the context of the company’s efforts to progress with its various initiatives.
Delays in awarding licences
The company, along with most other applicants under Health Canada’s MMPR (Marihuana for Medical Purposes Regulations) program, has experienced unanticipated delays in having its application processed. According to the MMPR dashboard released on Aug. 31, 2015, which provides the actual data about applications submitted to Health Canada, Worldwide Marijuana has learned that there have been 1,408 applications received by the minister. Of those received, 1,012 applications were deemed either incomplete, refused or withdrawn, with only 351 remaining active under the heading of “total licensed producer applications in process.” The 351 applications in progress are in various stages: 138 in enhanced screening, 51 at the refusal review stage, 68 at the security screening stage and 113 at the review phase. These various steps in the multistep process currently in use by Health Canada accounts for the 1,408 applications received. The various projects that Worldwide Marijuana has contractually secured through third parties have taken a significantly longer period to be processed than was anticipated, with some delays attributable to both court cases involving claims made against Health Canada and the federal election.
New government; new mandates
Worldwide Marijuana and other applicants have been encouraged by the new direction and tone of Prime Minister Justin Trudeau. Worldwide Marijuana’s applicants received e-mail confirmation months before the election that they were in the review phase. Medcann Health Products Ltd.’s news from Health Canada indicated it would be contacted if corrective action was required to its application before approval. Monashee Medicinal MJ Inc. received a corrective action demand from Health Canada. The updated information to their applications was received and acknowledged just as the federal election activity started. Worldwide Marijuana assesses that this means that the requirements for the licence issue is close, and, by review of the MMPR dashboard, Worldwide Marijuana can report that these assets are in the final group of 113 to receive the last look or final review and anticipates the new Minister of Health and MMPR staff will issue a licence soon.
Prior to the recent federal election, Mr. Trudeau made certain promises relative to changing the marijuana laws, which have now, postelection, turned into a written mandate to three ministers that include health, justice, and public safety and emergency preparedness. Reference to impending changes to the marijuana laws were repeated in the throne speech as the new government commenced work on Dec. 4, 2015. This mandate is “to work with your colleagues and through established legislative, regulatory and cabinet processes to deliver on efforts that will lead to the legalization and regulation of marijuana” (prime minister mandate letter, November, 2015). While the mission focus of Worldwide Marijuana remains with the current MMPR, which makes marijuana legal for medical use, Worldwide Marijuana will act as a stakeholder at all levels of government referred to under the issued mandate. Worldwide Marijuana will provide access to clients that require the talents and qualifications of its board of directors where and when requested. Worldwide Marijuana’s clients include patients, doctors and those MMPR applicants needing information about legislation in order to operate. Inroads are being made to continue Health Canada stakeholder status granted to the chief executive officer of Worldwide Marijuana while changes to the MMAR (Marihuana Medical Access Regulations) were being considered in 2013. With the knowledge gained and the network established, Worldwide Marijuana will seek to assist local municipalities such as Victoria with its study and assessment of the coming project to legalize marijuana by the new government ministers.
Worldwide Marijuana projects and initiatives
With delays forecast in obtaining licences from Health Canada as Worldwide Marijuana was coming into the public market, a decision was made to create a three-pronged approach in the medical marijuana business sector. They include: the acquisition of MMPR licensed producers; the acquisition of infrastructure and acquisition or partnering with ancillary businesses supporting marijuana operations and capable of providing cash flow to Worldwide Marijuana in the marijuana industry sector that does not require a licence with Health Canada; and an inherent wait to commence operations as described as follows in the company’s ancillary business sector.
Monashee Medicinal, a 17-acre property in Revelstoke, B.C., that applied for an MMPR licence
Health Canada confirmed by e-mail that this application required a corrective action report. Acknowledgment of this report by Health Canada in October, 2015, placed this application in final review. Worldwide Marijuana has had a letter of intent in place with the owner/operator for 100-per-cent ownership of this facility and licence since April, 2014. The acquisition cost of $3-million includes the land parcel, licensed producer once it is received and four staff assigned in the licensed producer application, and provides for the construction of the facility once the approval is issued by Health Canada. Funds required to become operational include the building costs of approximately $3-million, which will be raised once the licensed producer has been granted.
MedCann Health Products, a 9,500-square-foot facility with room to double capacity by expansion in Chemainus, B.C.
Health Canada confirmed by e-mail this application is in final committee review stages for approval and needs no corrective actions to the application. Worldwide Marijuana has had a letter of intent agreement for 100-per-cent ownership of this facility and licence since July, 2014. The acquisition cost is $3.2-million, and funds required to complete the acquisition is $2.8-million. A distribution contract is part of the acquisition. It will cash flow at $5.4-million (three-year term with an additional three-year option) to a fellow licensed producer.
Saskatchewan facility, a 65,000-square-foot facility on 21 acres
An MMPR licence application has been submitted for approval and is in the Health Canada progress phase. Worldwide Marijuana has a memorandum of understanding with the purchaser of this facility. The purchaser has a letter of intent for acquisition of this facility and the associated Health Canada licence granting licensed producer status, along with a distribution contract, to a sister facility on Vancouver Island with a well-developed network into the pharmaceutical market.
Ashland, Ore., United States
Worldwide Marijuana has a letter of intent with an owner/operator of a seven-acre farm that is in Oregon. Discussions between Worldwide Marijuana and Anna Ranch of Ashland started in May, 2015, as Oregon State organized a referendum for the legalization of marijuana to be approved in July, 2015. This letter of intent establishes a first for Worldwide Marijuana to become involved in the licensing process for legalized marijuana in one of the states that permits Canadian business involvement. Worldwide Marijuana is conducting due diligence on the possibility of acquisitions or mergers with companies in four other states involved in legalized marijuana businesses.
The Trail facility is 40,500 square feet on 17 acres. There is potential to develop an additional 28,000 square feet of production space in two additional buildings. Worldwide Marijuana has an option to purchase this property. The potential to turn this into an MMPR facility or a leasehold property is being evaluated. A purchase and sale agreement for $2.2-million is in place, providing the option for Worldwide Marijuana. Funds required to complete the purchase are $2-million.
Ancillary business (marijuana related)
Worldwide Marijuana has been approached and has opened discussions with companies that will provide services to licensed producers, patients and medical operations. These include services of transportation, recycling, licensed producer seed-to-sale data management; patient data management for licensed producers, doctors and medical outlets; and computer-driven environmental control technology. News will be provided when definitive agreements are finalized and financing is raised to either acquire or partner with these businesses.
A strong relationship exists between the company and those under letter of intent contracts with Worldwide Marijuana and its continuing interface with Health Canada. Notwithstanding the inordinate delays from Health Canada and the uncertain business environment that has been created, Worldwide Marijuana’s management has, for the past many months, made extraordinary efforts to ensure that facilities would be in place to allow for the completion of multiple transactions once a licensed producer has been approved by Health Canada. Given the current status recently announced by Health Canada, management has every reason to expect a positive resolution within the next 90 days. Worldwide Marijuana fully expects that two of three licences that have passed final reviews will be issued soon. The third is still in the screening phase and should be granted at a later date. There is great potential inherent in the Worldwide Marijuana operational plan, but the major issue remains the uncertainty of the timing for the acquisition of a licensed producer. With the arrival of the new government and the promises to legalize and regulate marijuana, Worldwide Marijuana believes that the delays experienced to date will dissipate and the applicants in the Worldwide Marijuana portfolio will be successful in order to enable Worldwide Marijuana to fully execute on its business plan.
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
Follow Us on Social Media
About CFN Media Group
CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.