Q-Gold Announces Letter of Intent

About this update from Q-gold Resources Ltd

[{"type":"text","content":"\n\n\nVANCOUVER, July 10, 2014 /CNW/ - Q-Gold Resources Ltd. (the \"Company\")\n (TSX VENTURE: QGR) (http://www.qgoldresources.com) is pleased to announce that it has executed a Letter of Intent (the\n \"LOI\") to potentially acquire two private agricultural supply companies\n that specialize in sales of growing equipment to the international\n medicinal cannabis industry (the \"Target Companies\").  The vendor is a\n private British Columbia company, and is - along with the Target\n Companies, at arm's length to the Company.  Pursuant to the terms of\n the LOI, and subject to various closing conditions (including but not\n limited to the negotiation and execution of a formal purchase and sale\n agreement), Q-Gold can acquire 100% of the issued and outstanding\n shares of the Target Companies in consideration for $2.2 million, to be\n paid through the issuance of Q-Gold shares and cash payments to the\n vendor.\n\n\nThe Target Companies had combined gross sales of $6.6 million during\n their most recently completed year-ends and have established strong\n business relationships over the past 7 years with its suppliers and\n customers.  Although initially focused on retail sales in the Canadian\n market, the Target Companies have entered into the United States market\n in the past 2 years as more US states have legalized medicinal\n marijuana, increasing the market for growing equipment.  Currently 23\n US states, plus the District of Columbia, have legalized medicinal\n marijuana. \n\n\nAccording to \"The State of Legal Marijuana Markets\", published by\n ArcView Market Research, the United States national legal marijuana\n market value was assessed at $1.53 billion in 2013 and has the\n potential to reach $10.2 billion over the next five years.\n\n\nThe Company acknowledges that, at this time, there can be no assurance\n or guarantee that it will complete the acquisition of the Target\n Companies, which will also be subject to the approval of the TSX\n Venture Exchange.  The Company will provide further updates as they\n become available.\n\n\nAbout Q-Gold Resources Ltd.\nQ-Gold is a publicly traded Canadian-based mineral exploration company\n currently holds over 10,000 contiguous acres of mining and patented\n claims containing 5 historic gold mines in the Kenora Mining District\n of Ontario.&#xA0...

More updates from Q-gold Resources Ltd