BONSALL, CA--(Marketwired - Feb 15, 2017) - MARIJUANA COMPANY OF AMERICA ("MCOA" or the "Company") (OTC: MCOA), an innovative cannabis and hemp marketing and distribution Company, is pleased to announce that it has entered into a non-binding Letter of Intent ("LOI") while performing due diligence to finalize a joint venture agreement with Bougainville Ventures, Inc. ("BV") for the purpose of housing tenant growers engaging in the cultivation, processing and commercial availability of legal marijuana in the State of Washington.
Subject to the execution of a final definitive agreement, the terms of the LOI are that MCOA will invest up to $1 million in cash in a newly formed entity and receive 50% equity ownership and 50% share in net profits produced by the joint venture. Bougainville Ventures, Inc. will contribute its expertise in establishing facilities related to the production, processing and management for tenant growers utilizing an I-502 Tier 3 license, with leased property, established partnerships, licensing agreements and marketing relationships.
Donald Steinberg, MCOA President and CEO said, "We are looking forward to getting seed in the ground and ramping up this partnership with Andy Jagpal and Bougainville Ventures. This partnership further strengthens our supply chain and enables MCOA to produce the highest quality products at the lowest possible prices."
"We couldn't be happier than to have aligned ourselves with the outstanding team at MCOA," said Jagpal, President of Bougainville Ventures, Inc. "With the management expertise that the highly skilled professionals at MCOA bring, we have insured the certainty of expanding our Washington State Greenhouse Campuses while achieving our revenue and profitability goals."
This joint venture project is solely for the purpose of cultivation, processing and commercial availability of legal marijuana within the State of Washington only and not beyond its borders.
"As each new partnership is formed, synergistic benefits will develop organically," said Steinberg. "Our human, agricultural and technical resources will expand with the end result being the ability to cultivate superior products for the cannabis consumer in each state in accordance with their respective laws."
With more than half of the United States now allowing for some form of legal medicinal or recreational cannabis use, there is an urgent need to establish cutting edge cultivation facilities and programs to service the continually growing demand for cannabis and CBD products.
"Knowing how to manage the many individual cannabis markets effectively and simultaneously will be the key to success for MCOA's national rollout," said Steinberg. "By integrating and aggressively harnessing the collective resources of our companies, we are confident that we will be making a significant impact on sales and distribution in Washington State."
ABOUT BOUGAINILLE VENTURES, INC.
Bougainville Venture Inc. is in the core business of converting irrigated farmland that was traditionally used to grow marginally profitable feed crops, to greenhouse-equipped farmland used to grow luxury crops with a primary focus on marijuana. Bougainville is an agricultural services company that focuses on providing growers with state-of-the-art computer controlled greenhouses and processing facilities. Bougainville offers fully built out turnkey solutions to licensed I-502 tenant-growers and luxury crop growers who will lease the facilities for production and processing. Bougainville does not "touch the plant" and only provides growing infrastructure as a landlord for licensed marijuana growers in the state of Washington. Bougainville has a strong management team with relevant experience and education in place with a focus on build-out and occupancy of its planned greenhouses in Oroville, WA. Strategic plans to expand its land bank, greenhouse campus and I-502 tenant-grower clients are scheduled for expanding operations.
SAFE HARBOR STATEMENT
This release contains forward-looking statements that are based upon current expectations or beliefs, as well as a number of assumptions about future events. Although we believe that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, we can give no assurance or guarantee that such expectations and assumptions will prove to have been correct. Forward-looking statements are generally identifiable by the use of words like "may," "will," "should," "could," "expect," "anticipate," "estimate," "believe," "intend," or "project" or the negative of these words or other variations on these words or comparable terminology. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties, including but not limited to: adverse economic conditions, competition, adverse federal, state and local government regulation, international governmental regulation, inadequate capital, inability to carry out research, development and commercialization plans, loss or retirement of key executives and other specific risks. To the extent that statements in this press release are not strictly historical, including statements as to revenue projections, business strategy, outlook, objectives, future milestones, plans, intentions, goals, future financial conditions, events conditioned on stockholder or other approval, or otherwise as to future events, such statements are forward-looking, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this release are subject to certain risks and uncertainties that could cause actual results to differ materially from the statements made.
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