Matica Announces Letter of Intent to Acquire a Marijuana Producer Application in Southwestern Ontario

September 27, 2017 – Toronto, Ontario – Matica Enterprises Inc. (MMJ–CSE) (39N – Frankfurt) (MQPXF – OTC PINK) (“Matica” or the “Company”) is pleased to report that on September 25, 2017 the Company signed a new non-binding letter of intent (“LOI”) for Matica to become a majority owner of a late stage application under the Access To Cannabis for Medical Purposes Regulation (“ACMPR”) in southwestern Ontario. Management began talks with owners of the ACMPR applicant situated just outside of Windsor Ontario almost one year ago.  We are please to have come to an agreement on terms and will proceed to a definitive agreement (the “Agreement”) to acquire the application.  

The facility is located on 14 acres of agricultural land.  The application is for a 13,000 square foot building which is immediately expandable to 24,000 square feet by extending it to an adjoining building. Matica has also negotiated a favourable purchase option for the entire 14 acres so that a much larger facility can be built on the property at a later date. 

Matica Enterprises CEO, Boris Ziger states, “This new project will give us the size we need to be competitive in the medical and recreational markets. Being in southwestern Ontario will keep our power costs low as the area abounds with natural gas.  We will have access to two huge markets, Ontario and Quebec, and we will be able to build a huge facility to meet demand.”    

After successful due diligence and signing of the definitive agreement, Matica will b required to spend $3,000,000 on construction to earn 100 percent on the application.  Matica has agreed to net profit royalty (“NPR”) of forty percent (40%) on earning from the initial building only.  Should Matica construct additional marijuana growing operations on the 14 acres property, no such NPR will be paid and Matica will retain 100% of earnings. 

Dorval Facility

Construction on the 10,000 square foot Dorval facility is progressing.  Preparations for the HVAC installation are continuing. Internal separations for grow rooms have begun.  We are very pleased with the pace of construction.

 

For more information on Matica please visit the website at: www.westislandbrands.com.

On behalf of the Board of Directors

MATICA ENTERPRISES INC.

/s/Boris Ziger

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

 

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.

The CSE has not reviewed, approved or disapproved the content of this press release.