- MCOA signed a letter of intent with Northern Lights Distribution and Alpha Private Equity & Capital to form Magnolia Extracts
- The joint venture aims to expand large-scale operations surrounding the delivery, distribution and manufacture of cannabis products
- MCOA earlier acquired a 20 percent equity interest in and signed a JV with Natural Plant Extract of California
Marijuana Company of America Inc. (OTCQB: MCOA), a hemp and cannabis corporation, has signed an LOI with Northern Lights Distribution (“NLD”) and Alpha Private Equity & Capital to form joint venture Magnolia Extracts LLC, with plans to debut delivery, distribution and manufacturing at its cannabis products location in Lynwood, California (http://cnw.fm/l5lXR). Notably, NLD is a subsidiary of Natural Plant Extract of California (“NPE”), of which MCOA became a 20 percent equity interest owner last April (http://cnw.fm/98pNC).
NLD has entered into the partnership and will pay up to $1.5 million to build out a new production facility and use the 18,000-square-foot building space to create greater efficiency and capacity for operations (http://cnw.fm/PcVC6).
When MCOA acquired an equity interest in NPE, the company entered a joint venture agreement with NPE to form Viva Buds, a premier cannabis retail delivery business. MCOA plans to begin a cannabis delivery service in California, starting in Los Angeles County and then rolling out to other major area within the state. Both MCOA and NPE agree to split the profits equally.
“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,” MCOA CEO Don Steinberg stated in a news release. “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.”
Completion of the transaction remains contingent upon satisfactory completion of due diligence by both parties.
MCOA is an Escondido, California-based corporation that conducts product research and development of legal, hemp-based consumer products containing CBD under the brand name hempSMART.
For more information, visit the company’s website at www.MarijuanaCompanyofAmerica.com
NOTE TO INVESTORS: The latest news and updates relating to MCOA are available in the company’s newsroom at http://cnw.fm/MCOA
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