Wildflower Marijuana Signs LOI to Enter US Market
Wildflower Marijuana Inc. (CSE:SUN) announced that it has entered into a letter of intent (LOI) to form a licensing joint venture with a licensed marijuana producer in the state of Washington. The deal will entail the development of Wildflower-branded products that will then be marketed and distributed by the marijuana producer.
As quoted in the press release:
Pursuant to the Joint Venture, Wildflower will grant an exclusive license to manufacture, market and sell certain products, recipes, retail merchandise and promotional materials under the Wildflower brand in the State of Washington. As part of the agreement, Wildflower will issue 1,303,800 shares and pay $250,000 to its Joint Venture partner and contribute $1,100,000 in working capital to develop the brand. In consideration, Wildflower will receive a licensing fee equal to 20% of the gross sales of Wildflower branded products. Wildflower’s joint venture partner has been in the marijuana business since 1998 and has operated a medical dispensary since 2012. The partner has agreed to negotiate in good faith combining these operations into the Joint Venture at such time as the law permits. Washington State is currently developing new rules regulating medical dispensaries. Further, Wildflower will work closely with its Joint Venture partner to implement Wildflower’s Quality Assurance Program, Standard Operating Procedures and Good Manufacturing Practices to ensure the highest quality is produced for the Wildflower brand. As part of the transaction, Wildflower has agreed to pay a commission in accordance with regulatory guidelines.
As Wildflower’s Joint Venture partner is currently producing and selling marijuana and related products, once the transaction closes Wildflower can immediately commence sales of Wildflower branded products. Work has already begun to identify new and unique product lines.
Wildflower President and CEO William MacLean commented:
After many years of hard work I am excited that we will finally get to see the Wildflower brand available on store shelves. I know consumers will embrace the Wildflower product line which will transcend many different demographics. This is the first step in realizing our goal of making Wildflower a global marijuana brand. I would like to thank the Wildflower team for their diligence and commitment to making this vision a reality. In particular, Scott Walker VP of Corporate Development, whose vast contacts and expertise within the industry has opened the door to this and many more markets for the Wildflower brand.