CALGARY, Alberta, Aug. 26, 2019 — Maple Leaf Green World Inc. (“Maple Leaf” or the “Company”) (NEO: MGW, OTCQX: MGWFF) announces the following:
Maple Leaf Green World is pleased to announce that it has signed a letter of intent (LOI) to acquire of all of Tangible capital assets, including land, buildings, greenhouse equipment and goodwill of the business as a going concern (collectively the “Proposed Transaction”) owned by Woodmere Nursery Ltd. (“Woodmere”), at it’s Telkwa, BC location. The Proposed Transaction will not only enable Maple Leaf to obtain necessary funding for completion of its previously announced unfinished Telkwa facility and space for expansion, but also provide another source of income from Woodmere operations. Another positive factor in this endeavor is the fact that MGW will benefit from the invaluable growing experience from the Woodmere management team to assit in MGW’s goal of success in both Quality and Profitability in the first years of production.
Woodmere Nursey has about 80 acres of land with 52 greenhouses on it. It produced its first crop of reforestation seedlings in 1985. The management team has been with Woodmere since its inception. Today it grows 12.5 to 13 million seedlings per year in 7 acres of computer controlled greenhouses. Seedlings are grown in containers with single cell filled with sterilized growing media. It has also cold storage capacity of 9 million seedlings.
Woodmere Nursery’s production system is based on the Total Quality Management System where Quality related to clients’ needs is the corporate vision. Inhouse Quality Assurance Programs from growing media to shipping to the field sites (every phase in the production cycle) are key to its success.
Woodmere Nursery is known over its 35 years of operation as innovative and passionate about its seedlings produced. It provides seedlings from Mackenzie to Prince Rupert. Its clients are the Province, Federal Government and the Forest Industry. Woodmere also produces seedlings for the mining and the LNG Infrastructure industry. The demand for reforestation seedlings is on the rise due to fires and pests from Climate Change.
The Proposed Transaction is subject to completion of satisfactory due-diligence; approval of Aequitas Neo Exchange Inc. (“NEO”) and approval by the non-interested directors of the Company.
One of the directors of the Company is a minority shareholder of Woodmere, thereby making the Proposed Transaction, a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). The Proposed Transaction will require a formal valuation and minority shareholders approval pursuant to Sections 5.4 and 5.6 and Part 8 of MI 61-101.
Maple Leaf is in discussions with several lenders who have serious interest in providing the financing for completion of the Proposed Transaction.
About Maple Leaf Green World Inc.
Maple Leaf is a public Canadian company that focuses on the cannabis industry in North America. The Company currently has cannabis projects in British Columbia and California. With over 10 years of extensive greenhouse management experience, the Company applies its eco-agriculture knowledge and cultivation technology to produce contaminant-free cannabis products. Maple Leaf’s long-term objective is to produce cannabis oil and to export its products to approved countries. The Company’s common shares are listed for trading on the Aequitas NEO Exchange Inc. under the symbol “MGW” and on the OTCQX market under the symbol “MGWFF.”
Forward Looking and Cautionary Statements
This news release may include forward-looking statements including opinions, assumptions, estimates, the Company’s assessment of future plans and operations, and, more particularly, statements concerning: the Proposed Transaction and the timing thereof; When used in this document, the words “will,” “anticipate,” “believe,” “estimate,” “expect,” “intent,” “may,” “project,” “should,” and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by the Company that include, but are not limited to, the timely receipt of all required regulatory and third-party approvals, including approvals from NEO and from the shareholders of Maple Leaf. Forward-looking statements are subject to a wide range of risks and uncertainties, and although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to: regulatory and third party approvals, including approvals from NEO and from the shareholders of Maple Leaf, not being obtained in the manner or timing anticipated; the ability to implement corporate strategies; the state of domestic capital markets; the ability to obtain financing; changes in general market conditions; industry conditions and events; and other factors more fully described from time to time in the reports and filings made by the Company with securities regulatory authorities. Please refer to the Company’s annual information form (“AIF”) for the year ended December 31, 2018 and management’s discussion and analysis (“MD&A”) thereof for additional risk factors relating to the Company. The AIF and MD&A can be accessed under the Company’s profile on www.sedar.com.
Except as required by applicable laws, the Company does not undertake any obligation to publicly update or revise any forward-looking statements.
For further information, please contact:
Maple Leaf Green World Inc.
Raymond Lai, Chairman, President & CEO