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Catalina Gold Corp. Announces Letter of Intent with Thrive Cannabis
Not for Distribution in the United States or Through United States Wire Services VANCOUV...
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[{"type":"text","content":"Catalina Gold Corp. Announces Letter of Intent with Thrive CannabisNot for Distribution in the United States or Through United States Wire ServicesVANCOUVER, BC / ACCESSWIRE / October 26, 2018 / Catalina Gold Corp. (the \"Company\") (NEX: CA.H) announces it has entered into a non-binding letter of intent dated October 25, 2018 (the \"LOI\") with Thrive Cannabis Inc. (\"Thrive\"), a licensed producer of medical cannabis, with respect to the construction and operation of medical cannabis facilities in Canada (the \"Transaction\"). Pursuant to the LOI, the Company and Thrive intend to form a joint venture entity (\"JVCo\") to be owned 75% by the Company and 25% by Thrive and enter into a joint venture (the \"Joint Venture\"). Under the Joint Venture, JVCo will enter into a lease agreement with the Thrive for the purpose of leasing the property located at 41 Townline Rd, Simcoe, ON (the \"Property\") for the proposed construction of an up to 100,000 square foot facility (the \"Facility\") for the production of medical cannabis for 21 years less a day to comply with the Planning Act requirements and a post-closing covenant to use reasonable efforts to obtain Planning Act consent to grant a longer lease term of 99 years. Thrive is expected to design, build and manage construction of the Facility and the Company will arrange for funding of the construction of the Facility. Once the Facility is constructed by the JVCo, the parties will share in the payment of all expenses relating to equipment acquisition and installation and set-up of the production facilities on a pro-rata basis. Thrive will act as operator for JVCo and set up the quality assurance program to comply with the requirements of Health Canada under the Access to Cannabis for Medical Purposes Regulations. As consideration for Thrive's entry into the Joint Venture, the Company will issue 25,000,000 common shares (each a \"Share\" and together the \"Shares\") to nominees of Thrive at the per share closing price on the date of closing of the Transaction. In addition, Thrive will receive 25% of the net revenue generated by the Facility for so long as Thrive continues to manage and operate the Facility and 25% of the net revenue in any other facility constructed or obtained by the JVCo that is operated and/or managed by Thrive.As contemplated by the LOI, Thrive will purchase 100...