August 11th, 2015 – Toronto, Ontario – Matica Enterprises Inc. (MMJ – CSE) (39N – Frankfurt) (MQPXF – OTC) (“Matica” or the “Company”) is pleased to announce that it has contracted 5th Element Advisors Ltd. (“5th Element”) to offer consulting services concerning Matica’s current medical marijuana project and assist in the identifying and evaluating of additional marijuana related growth opportunities for Matica. Mr. Ryan Brown of 5thElement has been appointed to Matica’s Advisory Board to provide expertise and guidance to Matica management in all issues related to marijuana, medical marijuana, and marijuana by-products.
Collectively, Ryan Brown and the 5TH Element team have over 30 years of experience in medicinal cannabis cultivation, production facility design, and business development. Mr. Brown has a large international network of business contacts in the industry. Currently 5th Element is providing strategic consulting services to licensed producers in Canada and to U.S. applicant producers as well as marijuana related ancillary businesses.
Matica CEO, Boris Ziger states, “Ryan’s experience and expertise proved to be invaluable in a recent tour of the medical marijuana facility in Antigonish, Nova Scotia. We are optimistic that with the assistance and guidance of 5th Element, Matica will be in a stronger position to identify and advance marijuana projects”
Update on the Nova Scotia Facility
Matica has a signed Investment Agreement with THC Dispensaries Canada, Inc (“THCD”) and Mr. Francis MacMaster. Matica currently holds a fifty percent interest in THCD, a Nova Scotia applicant under the Marijuana for Medical Purposes Regulation (“MMPR”). THCD has a “Ready To Build” letter issued by Health Canada and requires a pre-license inspection by Health Canada before becoming a Licensed Producer under the MMPR. The facility is located in a rural setting near the town of Antigonish on a 20 acre property with sufficient room for potential future expansions.
Matica has provided all funds that are due under the signed agreement until a licence is issued by Health Canada. Matica has also provided an additional $240,000 in shareholder loans to THCD that was not required under the agreement. This advance was made by Matica in good faith to assist THCD to reach the completion of the pre-inspection phase. However, despite Matica’s support, THCD continues to be several months behind schedule and significantly over budget in completing the pre-inspection facilities. Under the terms of the current agreement, Matica is required to return its 50% share of THCD for cancellation if the MMPR a license is not received by October 31, 2015. The numerous delays make it unlikely that a license will be granted by that date. Matica has made numerous requests to extend or remove the cancellation date due to Matica not being responsible for the failure of THCD to complete the facilities. In addition, Matica has made numerous written proposals to THCD to attempt to move the project forward with additional funding. THCD has yet to accept any of the Matica proposals.
Boris Ziger further states “Months ago, THCD requested additional funds for an upgraded HVAC. For the good of the project Matica forwarded the funds requested but the HVAC has yet to be delivered and installed. The project now stands months behind schedule, over budget, and in need of assistance. Matica has made numerous offers to THCD to provide the needed funding, accounting and managerial support, and the much needed technical support to bring this project to successful conclusion. Mr. MacMaster, CEO of THCD has rejected all of our offers. We feel that this project can be brought back on track if all parties cooperate”
Matica will continue to evaluate the progress of the project and will evaluate taking any legal action deemed necessary to protect the interests of Matica and its shareholders against any and all parties considered to be responsible and liable.
For more information on Matica Enterprises please visit the website at: www.westislandbrands.com.
On behalf of the Board of Directors
MATICA ENTERPRISES INC.
Boris Ziger, CEO & Chairman
The Company’s filings are available for review at www.sedar.com and www.thecse.com.
For further information, please contact Boris Ziger, Chief Executive Officer, at:
Telephone: 416-304-9935
E-mail: info@westislandbrands.com
Website: www.westislandbrands.com
Disclaimer for Forward-Looking Information
Certain information in this press release may constitute forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Corporation assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Corporation. Additional information identifying risks and uncertainties is contained in the Corporation’s filings with the Canadian securities regulators, which filings are available at www.sedar.com.
This news release contains statements about the Company’s information that will be made available on the S&P Capital IQ Corporation Records Listing Program and the business of Matica, specifically any potential licensing under the MMPR, that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include failure to receive its Licensed Producer designation for any reason whatsoever. The forward-looking statements contained in this news release are made as of the date hereof, and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law.
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. We seek Safe Harbor.