Business
Marijuana Company of America Acquires Interest in Licensed California Manufacturing & Distribution Company
Marijuana Company of America Acquires Interest in Licensed California Manufacturing & Distribution Company.
About this update from Marijuana Company Of America, Inc.
[{"type":"text","content":"\nESCONDIDO, Calif., March 20, 2019 (GLOBE NEWSWIRE) -- via NetworkWire -- MARIJUANA COMPANY OF AMERICA INC. (“MCOA” or the “Company”) (OTC: MCOA), an innovative hemp and cannabis corporation, is pleased to announce that MCOA has entered into a letter of intent (LOI) with Natural Plant Extract of California (NPE) and its subsidiary, Northern Lights Distribution, LLC (NLD), to acquire a 20% ownership interest in NPE, and to establish a Joint Venture (JV) to operate a California cannabis delivery service named Viva Buds.\n Under the terms of the LOI, MCOA has committed to contribute $2,000,000 in total cash to the project, as well as common shares of the Company with a value of $1,000,000. In exchange, MCOA will own a 20% equity position in NPE. In addition, both NPE and MCOA will form a JV to operate Viva Buds and will share in the profits on a 50/50 basis. NPE has obtained both state and city licenses for volatile manufacturing, distribution and retail delivery of cannabis products. NPE has a long-term lease with favorable terms for its location at 11116 Wright Road, Lynwood, CA. NPE will manage all operations pertaining to distribution, manufacturing, and delivery of cannabis products, and MCOA will provide capital, consulting and marketing services. NPE is currently generating revenue through its distribution business segment under NLD, which it launched in 2018 and is undergoing construction of its manufacturing lab since it recently obtained all of the necessary state and local permits. As part of the JV with NPE’s distribution company NLD, MCOA formed a wholly owned subsidiary called Viva Buds Inc. to serve as the marketing arm for NLD’s new retail delivery service in California. The Company will initially focus on delivering cannabis products to Southern California and then rollout to other cities statewide. NLD will contribute up to $300,000 in inventory of cannabis products to assist in the start-up of this venture and will oversee all delivery and fulfillment of orders. MCOA will provide a vast array of marketing services and technology to promote and build its Viva Buds brand.        The parties are in the process of conducting due diligence and completing a material definitive agreement. Donald Steinberg, CEO of MCOA stated, “This partne...