VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 13, 2014) -
NOT FOR DISSEMINATION IN THE UNITED STATES
Anexco Resources Ltd. (CSE:AXO) ("Anexco" or the "Company") -
Anexco Resources Ltd. is pleased to announce that BC Chronic Inc., its wholly-owned subsidiary, has signed a non-binding letter of intent ("LOI") with a medical Cannabis producer presently licensed under Health Canada's Marijuana Medical Access Regulations (MMAR) (the "Vendor").
Under the terms of this LOI, BC Chronic would acquire 100% of the Vendor's operations, located in the interior of British Columbia. The Vendor's facility has been built to Marijuana for Medical Purposes Regulations (MMPR) standards and encompasses 388 1000W lights of production capacity. The facility is capable of producing 2500 kgs. of biopharmaceutical grade medical Cannabis annually. All building permits including structural, electrical, and fire have been obtained from the local municipal authorities, and the facility includes fire suppression and sophisticated security systems. Furthermore, the facility is scalable to approximately 60,000 sq. ft.
Using this facility, BC Chronic will apply to Health Canada to obtain a Licensed Producer designation. Upon receiving the Licensed Producer approval, the Company will issue the Vendor 2,750,000 common shares of its capital stock and a signing bonus of $100,000.
The Vendor's team consists of seasoned industry personnel with a very high level of experience in all aspects of medical Cannabis production including cultivation, facility design and construction. Mr. Martinz, President of Anexco remarks, "This acquisition is a very important step for the Company and its shareholders. We welcome these operators of trusted and experienced leadership and quality forte to become part of our Cannabis 'dream-team'. Together, using our combined talents and this facility, we will be able to produce industry leading Cannabis for our clients at the most affordable prices possible." The Vendor's team will continue to operate the facility under a management agreement.
Upon closing this transaction, the negotiation of a Management and Operating Agreement will be completed to cover all costs associated with operating the facility including management and labour. The parties will work towards completing a definitive agreement as soon as possible.
BC Chronic recently participated in the highly successful Green Rush Financial Conference held in Vancouver BC on May 7th. This event had an outstanding number of attendees, and tangible excitement, leading Anexco CEO Mr. Rudy de Jonge to comment, smiling, that "in my 25 years of public market experience I have never witnessed such excitement at a trade show." Many strong contacts were made at this conference which will be explored in the weeks to come.
On behalf of the Board of Directors of Anexco Resources Ltd.
Michael Martinz, President, Director
Rudy de Jonge, CEO, Director
THE CSE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.
This news release includes certain statements that may be deemed "forward-looking statements". The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "would", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this News Release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents which can be found under the Company's profile on www.sedar.com.