TORONTO and DENVER, March 31, 2020 (GLOBE NEWSWIRE) — MJardin Group, Inc. (“MJardin” or “the Company”) (CSE: MJAR) (OTCQX: MJARF), a leader in premium cannabis production, announced today that as part of its ongoing review, evaluation and turnaround process, it has actioned amendments to the Managed Services Agreements (“MSAs”) which were negotiated and put in place by previous management. As part of the same review process, MJardin is also terminating its previously announced joint venture partnership with Rama First Nation that included prospective plans for a cultivation facility. The Company continues to work with its MSA partners and Rama First Nation to finalize the updated agreements.
The amended MSAs will provide a streamlined royalty fee structure which will allow for the monetization of the Company’s intellectual property and proprietary cultivation methodologies. In addition, the amendments will reduce ongoing management obligations, thus reducing costs and placing less cash flow demands on the Company.
The Company has agreed to amend, terminate and extend its MSAs with Potco, LLC & Potco South, LLC, Next1 Labs, LLC, Next1 Labs South, LLC, and Gravitas Henderson, LLC dba F&L Warm Springs, LLC to December 31, 2020. In addition, the Company and Lightshade Labs, LLC, are in final stage discussions to extend their MSA for a period of 14-months. The Company is also finalizing its renegotiation of its MSA with AtlantiCann Medical Inc., pursuant to which the Company will earn a royalty for the balance of the existing 10-year agreement, but will no longer provide labour support to the operation.
The decision to dissolve of the joint venture partnership with Rama First Nation, and its prospective 94,000 sq. ft. indoor greenhouse cultivation facility, was based on fiscal responsibility, preservation of the Company’s capital in today’s economic climate, and developments in the cannabis cultivation market in Canada.
“I have nothing but great respect and admiration for our Rama First Nation partners, but I have to make these difficult business decisions in an effort to allocate capital where it makes most sense, while ensuring that we don’t take on more debt until we have successfully turned this business around,” said Pat Witcher, CEO of MJardin Group. “This decision, along with restructuring our pre-existing MSAs to remove the burdensome management costs we were incurring is in the best interest of the Company and all of its stakeholders.”
About MJardin Group
MJardin Group’s mission is to set the standard for successful ownership and management of assets in the cannabis industry. Our Colorado founders spent a decade refining cultivation methodology, collecting and implementing data driven standards and designing state of the art facilities. Today, MJardin owns or manages multiple operations in two US states and three Canadian provinces, supplying the market with premium products. We are committed to our Canadian First Nation joint ventures and all our partnerships across the cannabis supply chain. MJardin is publicly listed on the CSE (MJAR) and the QXOTC (MJARF) with offices in Denver, Colorado and Toronto, Ontario. For more information, please visit www.mjardin.com
The CSE has not in any way passed upon the merits of and has neither approved nor disapproved the contents of this news release.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
This news release contains forward-looking information based on current expectations. Statements about, among other things, future developments and the business and operations of MJardin, our production capacity, our production results, trading of MJardin’s shares on the OTCQX Best Market, the closing of the Transaction, the receipt of any pending regulatory approvals or licenses, the growth of our global footprint and our intentions to leverage our scale for continued organic growth and to pursue strategic investments are all forward-looking information. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Such factors include, but are not limited to: our ability to identify and pursue growth, financing and other strategic objectives, and the regulatory and economic environments in the jurisdictions we operate or intend to operate or invest in. Although such statements are based on management’s reasonable assumptions at the date such statements are made, there can be no assurance that the proposed acquisition will occur and that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on the forward-looking information. MJardin assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by applicable law.
|Ali Mahdavi||Pat Witcher|
|Capital Markets & Investor Relations||Chief Executive Officer|