Vancouver, British Columbia (FSCwire) – Alta Vista Ventures Ltd. (AVV-CSE, YRLLF-OTC) is pleased to announce that it has signed a Letter of Intent to purchase a 100% undivided interest in RedeCan Pharm, one of Canada’s 19 MMPR (Marijuana for Medical Purposes Regulations) cultivation and sales licenses.
“The completion of this transaction puts Alta Vista in a select group of public companies”, stated Ian Foreman, president of Alta Vista, “as there are only a handful of public companies with a license to cultivate and sell medical cannabis in Canada under the MMPR system. We are excited about this opportunity to continue to grow RedeCan Pharm into a leader in the industry.”
Redecan Pharm is located in the heart of the Niagara peninsula in Southern Ontario. RedeCan currently utilizes 15,000 square feet of greenhouse space on 30 acres of land located in the tender fruit belt. The size of the property allows for future expansion of the facility.
RedeCan Pharm received its cultivation license in June of 2014 and was then issued its license to sell dry cannabis to medical patients across the country in March of 2015. RedeCan’s ability to utilize their greenhouse facility along with their ability to keep operating expenses down have allowed them to be a profitable licensed producer.
RedeCan’s management has created a well-run, low cost medical marijuana producer and Alta Vista will work with RedeCan to help expand and grow RedeCan’s business. Alta Vista will be investing in RedeCan to enable this. Plans for 2016 include the following:
- Extracts: Adding extraction equipment immediately to produce high CBD oils for medical patients.
- Expansion – Alta Vista plans on expanding RedeCan’s operation, subject to Health Canada approvals, and overall total production space.
- Patients – Alta Vista, through its contacts in the industry, will work to increase RedeCan’s overall patient base.
RedeCan’s current management team will continue to run the day to day operations of the facility.
Under the terms of the LOI, Alta Vista Ventures shall pay RedeCan Pharm an aggregate consideration of $9,500,000 in cash and shares subject to the signing of a definitive agreement.$7,000,000 will be paid in cash and $2,500,000 will be paid by the issuance of shares of Alta Vista at a deemed price of $0.33 per share.
Upon signing the Letter of Intent Alta Vista has paid a non-refundable deposit of $100,000 and issued 2,000,000 shares to RedeCan.The remaining payments will be made in two stages as follows:
- Alta Vista will purchase a minority interest of 28.6% on, or before, February 15, 2016 by paying $1,900,000 and issuing 2,000,000 shares.
- Alta Vista will purchase the remaining 71.4% (for a 100% interest) on, or before, February 15, 2017 by paying $5,000,000 and issuing an additional 3,575,757 shares.
In addition to the purchase price Alta Vista will pay a 10% royalty of the gross revenues of RedeCan on a quarterly basis to be paid 50% in cash and 50% in shares of Alta Vista.
The Company has agreed to pay a 7% finder’s fee to Shaxon Enterprises upon successful completion of this transaction and would like to thank Don Shaxon and Jason Springett for their considerable efforts.
About Alta Vista Ventures:
Including shares issued for the recent acquisitions, Alta Vista Ventures has 23,732,107 shares issued and outstanding.
The purchase of Redecan Pharm, is the next step in Alta Vista’s goal of becoming a significant player in Canada’s medical marijuana marketplace.
In addition, Alta Vista has the right to purchase Thor Pharma, an early stage MMPR applicant that could add up to 75,000 square feet of growing space. Alta Vista cannot guarantee nor estimate the timing for the issuance of an MMPR license to Thor Pharma.
On behalf of the Board,
For information on Thor Pharma and RedeCan please contact Mr. Don Shaxon at 289-697-8625.
For additional information on Alta Vista Ventures please call the Company at 604-678-2531.
Neither Canadian Securities Exchange (CSE) nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
Statements in this press release, other than purely historical information, including statements relating to the Company’s future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in such statements. As a result, actual results may vary materially from those described in the forward-looking statements.