ESCONDIDO, Calif., June 10, 2019 (GLOBE NEWSWIRE) — via NetworkWire – PRESS RELEASE– Marijuana Company of America, Inc. (MCOA), a hemp and cannabis corporation, has announced the signing of a Letter of Intent (LOI) between Northern Lights Distribution LLC (NLD) with Alpha Private Equity & Capital LLC to form a joint venture called Magnolia Extracts LLC pursuant to large-scale expansion operations to begin distribution, delivery and manufacturing of its cannabis products in the city of Lynwood, Calif.
Marijuana Company of America announced in April 2019 that the company had officially acquired a 20-percent ownership interest and signed a joint venture agreement with Natural Plant Extract of California (NPE) to establish a premier cannabis delivery company called Viva Buds. NLD, a subsidiary of NPE, which has entered into this partnership and will cover costs up to $1.5 million in phased expenditures, allocated to significantly build out a new production facility and utilize the 18,000-square-foot building space to create greater efficiency and capacity for its operations.
“As our portfolio of legal cannabis and industrial hemp investments and joint ventures represent a significant portion of our growth strategy, we believe this step represents a strong move forward to establishing our foothold in the market,” said Don Steinberg, chief executive officer of Marijuana Company of America. “This allows us to advance into the next phase of our business plan through NPE, gaining access to over 18,000 square feet of building space. We are confident this joint venture will serve very beneficial for us as well as our investment partner, NLD.”
Consummation of the transaction remains contingent upon satisfactory completion of due diligence by both parties and completion of, and agreement on, all final terms and conditions of the engagement. Further details on these terms of this LOI are available in the Company’s filing, which can be accessed at www.sec.gov.