ESCONDIDO, Calif., April 17, 2019 -- PRESS RELEASE -- Marijuana Company of America, a hemp and cannabis corporation, has announced that the company has officially acquired a 20-percent ownership interest in Natural Plant Extract of California (NPE).
Under the terms of the agreement, Marijuana Company of America has committed to contribute $2,000,000 in total cash to the project, as well as common shares of the company with a value of $1,000,000. In exchange, the company will own a 20-percent equity position in NPE. In addition, MCOA and NPE have also officially signed a Joint Venture Agreement (JV) to establish Viva Buds as a premier cannabis delivery company. Both NPE and MCOA will share in the profits on a 50/50 basis.
Viva Buds Inc. will serve as the marketing arm for NPE subsidiary Northern Lights Distribution’s (NLD) new retail cannabis delivery service in California, first starting with delivery services to Los Angeles County and then rolling out to other major cities throughout the state. NLD will contribute up to $300,000 in inventory of cannabis products to assist in the start-up of this venture, and MCOA will provide a vast array of marketing services and technology to promote and build its Viva Buds brand.
NPE owns both state and city licenses for volatile manufacturing, distribution and retail delivery of cannabis products. NPE will manage all operations pertaining to distribution, manufacturing and delivery of cannabis products, and MCOA will provide capital, consulting and marketing services. NPE is currently operating as a distributor and is completing the build-out of its manufacturing facility, which is expected to be completed and fully operational in August 2019.
Regarding the acquisition, Alan Tsai, CEO of NPE, stated, “We are excited to be one of the first California licensed cannabis companies to partner with a publicly traded company in the US. We believe that partnering with an established company such as Marijuana Company of America will help to build Viva Buds and establish our foothold early by securing manufacturing and distribution contracts with key players in the California cannabis market. We expect that this strategic partnership will be mutually beneficial to both companies.”
Don Steinberg, MCOA CEO, stated, “After a great deal of due diligence and strategic planning, we are happy to execute an agreement to purchase ownership in NPE. This is a major step in staying true to our name Marijuana Company of America and entering into the marijuana industry in California. We have aspirations of becoming a major distributor, delivery service and manufacture in California. NPE is ahead of most of the competition in the state in terms of permitting, build-out and licensing."
