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     157  0 Kommentare Medcolcanna Executes Definitive Agreement for Joint Venture and extends LOI for Investment into Extraction Subsidiary

    BOGOTÁ, Colombia, April 07, 2020 (GLOBE NEWSWIRE) -- Medcolcanna Organics Inc. (TSX-V: MCCN) (“Medcolcanna”, “MCCN” or the “Company”), a Canadian medical cannabis company with operations in Colombia, is pleased to announce that, further to its press release dated February 24, 2020, through its subsidiary Medcolcanna S.A.S. it has executed a definitive joint venture agreement with Dona Blanca Limited (“Dona Blanca”) and has amended and extended one of the two previously signed letters of intent (“LOI”) with Dona Blanca Limited (“Dona Blanca”), an Australian based cannabis company with operations in Colombia.

    Pursuant to the definitive agreement, Dona Blanca will invest up to $1,000,000 USD ($1,420,000 CAD), to build up to an additional two (2) hectares of greenhouses on Medcolcanna’s fully licensed cultivation property which would earn Dona Blanca a 70% working interest (“WI”) in the economic rights to the output from such greenhouses. Dona Blanca will earn into the project in 3 stages, stage 1 which has been fully funded by Dona Blanca with an investment of $517,000 USD ($734,000 CAD), to earn a 35% WI or 0.7 net hectares; stage 2 where Dona Blanca will invest $290,000 USD ($412,000 CAD) by May, 15, 2020 to earn an additional 20% WI or an aggregated 55% WI, or 1.1 net hectares in the aggregate; and stage 3 where Dona Blanca will invest an additional $193,000 USD ($275,000 CAD) to earn an additional 15% WI or net 1.4 hectares in the aggregate.  Pursuant to the revised LOI, Dona Blanca has amended the period to invest $1,500,000 USD ($2,130,000 CAD) for a 15% ownership stake in Extralia Labs S.A.S (“Extralia Labs”) to October 15, 2020 in consideration for an additional non-refundable deposit of $22,500 USD ($32,000 CAD). Pursuant to the LOI, Dona Blanca also has an additional option to invest an additional $1,000,000 USD (1,420,000 CAD) for a total equity ownership of 25% in Extralia Labs (Medcolcanna’s wholly-owned subsidiary), which is designed to have annualized extraction capacity of 300,000 kilograms of dried flower in Colombia with operations that include providing services for Medcolcanna, Dona Blanca and third parties.

    Management Commentary

    We are pleased to announce the execution of this Joint Venture Agreement with Dona Blanca, which is the culmination of hard work of many members of the MCCN team. The execution reflects more than the transaction value of this JV,  this demonstrates the professionalism of our operations, commitment of our employees and management team to execute on state of the art operations while also monitoring and tightly controlling all expenditures, in order to have a high quality and low cost product.  The climate and highly skilled, low cost labor in Colombia provide many cultivation advantages, we are pleased to have leveraged these advantages and executed on our operations,” commented Felipe de la Vega, CEO of MCCN.

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    Medcolcanna Executes Definitive Agreement for Joint Venture and extends LOI for Investment into Extraction Subsidiary BOGOTÁ, Colombia, April 07, 2020 (GLOBE NEWSWIRE) - Medcolcanna Organics Inc. (TSX-V: MCCN) (“Medcolcanna”, “MCCN” or the “Company”), a Canadian medical cannabis company with operations in Colombia, is pleased to announce that, further to its …