Vida Cannabis Corp.

March 03, 2014 08:30 ET

Vida Cannabis (Canada) Contracts to Purchase 315,000 Sq. Ft. Building; Secures Local Approval for the Production of Medical Marijuana in Canada

TORONTO, ONTARIO--(Marketwired - March 3, 2014) - Vida Cannabis Corp. ("Vida Cannabis") is pleased to announce the Company's wholly owned Canadian subsidiary, Vida Cannabis (Canada) Ltd. ("Vida Canada"), has signed a Purchase & Sale Agreement (the "Agreement") with the Town of Stellarton to purchase a 315,000-square-foot former production plant located at 114 Acadia Avenue, Stellarton, Nova Scotia.

Established by Peter Munk's Clairtone Sound Corporation in 1966, the production plant manufactured televisions and employed almost 1,100 employees. Unfortunately, Clairtone's fortunes were short-lived in the electronics manufacturing industry and the factory slid into a state of dormancy, only periodically utilized thereafter for other purposes by companies like department store giant Sears, which utilized the space as a shipping and receiving warehouse.

Vida Cannabis identified the facility as the perfect structure to house a large-scale medical marijuana production plant. Vida further determined the plant's location in Stellarton is ideal, with the modern infrastructure in place to run such a facility efficiently.

Stellarton Mayor Joe Gennoe welcomed Vida Cannabis, stating: "We are delighted to see the old Clairtone factory be put back into production, albeit in an industry I never could have imagined even five years ago. As things change we, too, must adapt. Health Canada has established policies and procedures that ensure the legal production of medical marijuana is secure. We welcome Vida Cannabis to bring much needed employment opportunities back to the Town of Stellarton and support their efforts."

The Town of Stellarton, settled in 1774 by five families from Scotland who arrived on board the Hector, is located in a water-rich agricultural area of Nova Scotia little more than an hour from the Halifax International Airport. Stellarton is also the home of Canada's second-largest food retailer, Sobeys Inc. and many of its subsidiaries. The greater region of more than 10,000 people offers modern communications, an abundance of power and an industrious local labour force available and ready to work.

The building itself is a virtual fortress. The 315,000-square-foot facility is contained entirely under one large, 7-acre steel roof erected on windowless 18-foot-high concrete walls supported by an engineered concrete floor that is in nearly perfect condition. As the interior of the facility is structured like an aircraft hangar, it is literally wide open with no restrictive points to developing a customized medical marijuana plant that optimizes the building's entire square footage.

Set 400 meters back from a transport highway, the 12-acre property has a single access point making security remarkably efficient for such a large building, which is already surrounded by a --meter high fence with barbed wire top. In keeping with Health Canada requirements for licensing of medical marijuana production facilities, intrusion detection systems, round-the-clock surveillance and other minor security-related alterations will be implemented by Vida.

Under the terms of the Agreement, Vida Canada will be granted by the Town of Stellarton a 50-year irrevocable license to produce medical marijuana at the facility, subject to Vida Canada obtaining a commercial license from Health Canada. Such local approval is a condition necessary to making a successful application to Health Canada. The deal is scheduled to close on or before April 15th for a total purchase price of $500,000.

Vida Cannabis CEO J. Gregory Wilson stated: "We are extremely pleased with the total package that accompanies this remarkable facility. The people of the Town of Stellarton are at the top of that list. The local support for our Canadian medicinal marijuana operations has been virtually 100%. When operating at full capacity we anticipate labour needs of 200-300 employees. We look forward to bringing quality employment opportunities to the area and will hire and train people from the region whenever possible."

About Vida Cannabis Corp.

Vida Cannabis Corp. ("Vida Cannabis") is focused on developing a dominant production footprint in the rapidly developing global marketplace for the legal use of medicinal and recreational marijuana.

Initial operations are focused on the Canadian market where Health Canada has established national guidelines enabling best-in-class producers to acquire commercial production licenses under the Marihuana for Medical Purposes Regulations.

Via its wholly owned subsidiary, Vida Cannabis (Canada) Ltd., Vida Cannabis has contracted to purchase a 315,000-square-foot production facility in the town of Stellarton, Nova Scotia and unanimously secured a 50-year irrevocable approval from the local municipality to operate a medical marijuana production plant at the facility.

The highly secure facility boasts a fully engineered concrete floor, 18-foot-high concrete walls and a steel roof making it an ideal location for the construction of a customized, state-of-the-art modern medical marijuana production plant.

Vida Cannabis is working with one of the most talented cannabis consulting teams in the world, which has extensive resources in the United States, Canada and Europe, to establish an optimized end-to-end production plan to help position Vida Cannabis with the largest, most advanced medical marijuana facility in Canada.

Vida Cannabis continues to evaluate additional potential markets as regulatory bodies around the world pass legislation enabling the production and distribution of medicinal or recreational marijuana.

On behalf of the board,

J. Gregory Wilson - Director & CEO

Vida Cannabis Corp.


This announcement does not constitute or form part of, and shall under no circumstances be considered as, an offer to sell, a solicitation to purchase, or advice on investments in any securities of Vida Cannabis Corp. ("Vida Cannabis"). Offers and solicitations shall be expressly identified as such and made in compliance with applicable securities laws. This announcement is for information purposes only. It should not be relied upon as a basis for investment decisions. You should consult with your own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of any investments you are considering. Whilst the information provided here is believed to be reliable, it cannot be guaranteed. It may contain forward-looking statements made by or on behalf of Vida Cannabis about its business or financial objectives, position, strategies or expectations. Such forward-looking statements may be identified by words such as, or similar to, "intends," "anticipates," "believes," "expects" and "hopes" and includes, without limitation, the development of production facilities, approval from regulatory authorities and the ability for Vida Cannabis to obtain adequate financing to meet its business objectives. These statements involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated. The statements in this announcement do not guarantee future performance. Vida Cannabis does not undertake any obligation to update any information provided in this announcement. In Canada, Vida Cannabis (Canada) Ltd., a wholly owned subsidiary of Vida Cannabis, must obtain approval from Health Canada in order to operate as a licensed commercial producer under the Marihuana for Medical Purposes Regulations. Vida Cannabis makes no representations or warranties that it will receive Health Canada approval.

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