Business
MJardin Provides Corporate Update and Next Phase of Strategic Plan
MJardin Provides Corporate Update and Next Phase of Strategic Plan.
About this update from Mjardin Group Inc
[{"type":"text","content":"\n TORONTO and DENVER, March 31, 2020 (GLOBE NEWSWIRE) -- MJardin Group, Inc. (“MJardin” or “the Company”) (CSE: MJAR) (OTCQX: MJARF), a leader in premium cannabis production, announced today that as part of its ongoing review, evaluation and turnaround process, it has actioned amendments to the Managed Services Agreements (“MSAs”) which were negotiated and put in place by previous management.  As part of the same review process, MJardin is also terminating its previously announced joint venture partnership with Rama First Nation that included prospective plans for a cultivation facility. The Company continues to work with its MSA partners and Rama First Nation to finalize the updated agreements. MSAs The amended MSAs will provide a streamlined royalty fee structure which will allow for the monetization of the Company’s intellectual property and proprietary cultivation methodologies. In addition, the amendments will reduce ongoing management obligations, thus reducing costs and placing less cash flow demands on the Company. The Company has agreed to amend, terminate and extend its MSAs with Potco, LLC & Potco South, LLC, Next1 Labs, LLC, Next1 Labs South, LLC, and Gravitas Henderson, LLC dba F&L Warm Springs, LLC to December 31, 2020. In addition, the Company and Lightshade Labs, LLC, are in final stage discussions to extend their MSA for a period of 14-months. The Company is also finalizing its renegotiation of its MSA with AtlantiCann Medical Inc., pursuant to which the Company will earn a royalty for the balance of the existing 10-year agreement, but will no longer provide labour support to the operation.  RAMA Venture The decision to dissolve of the joint venture partnership with Rama First Nation, and its prospective 94,000 sq. ft. indoor greenhouse cultivation facility, was based on fiscal responsibility, preservation of the Company’s capital in today’s economic climate, and developments in the cannabis cultivation market in Canada. “I have nothing but great respect and admiration for our Rama First Nation partners, but I have to make these difficult business decisions in an effort to allocate capital where it makes most sense, while ensuring that we don’t take on more debt until we have successfully turned this business around,” said...