VANCOUVER, British Columbia--(BUSINESS WIRE)--Infinity Minerals Corp (CSE:IFN) announced today that it has signed a Non-Binding Letter of Intent (“LOI”) to acquire 100% of the outstanding shares of a private Medical Marihuana services company based in the Okanagan Valley of British Columbia.
The LOI is subject to the execution of a definitive agreement (“the Transaction”) between the two parties by July 1, 2014. The closing of the Transaction will be subject to a number of other conditions including completing due-diligence to the satisfaction of Infinity management, financing, completion of non-compete agreements and receipt of all necessary shareholder, regulatory and stock exchange approvals. It is anticipated that a closing of this transaction will represent a Fundamental Change as defined by the policies of the CSE.
The Kelowna, BC, based target company, The Herbal Clone Bank Inc. (THC Bank), will provide a full range of services to Licensed Producers (LPs) in the Medical Marihuana sector, with the goal of enhancing profit margins and the LP’s bottom line. Specific services provided include propagation, direct cultivation and sale of purebred cultivars; cloning; and marihuana strain storage. A wholly owned subsidiary of THC Bank, Advanced Greenhouse Technologies (AGT), has ongoing sales of an exclusive brand of greenhouses particularly designed for the industry.
It is contemplated that upon a successful conclusion of this transaction, the principals of the target company will join the board of Infinity.
THC Bank applied to Health Canada for its LP under the Medical Marihuana Purpose Regulations (MMPR) in November 2013.
“The THC Bank business model of growing and selling vegetative state plants will allow the company to work with all of the successful applicants of the MMPR (LPs). By providing a range of other services to LPs as well as selling greenhouses, THC Bank is in a unique position to assist companies producing Medical Marihuana. THC Bank is run by a 40 year veteran of the horticulture industry who, along with his team, provides a unique insight into the direction of the industry and its potential,” stated Ron Shenton, CEO of Infinity.
Infinity also announced a non-brokered private placement of up to 5.0 million units for gross proceeds of $1,000,000 at $0.20 per unit. Each unit will consist of one common share and one half of one, non-transferrable share purchase warrant. Each full warrant entitles the holder to purchase one common share at a price of $0.30 for a period of one year. Proceeds from the raise will be used for final due-diligence, anticipated transaction costs, filing and professional fees and general working capital. The proposed transaction has a purchase price of $4,312,500 and will be facilitated by the issuance of Infinity treasury stock at a deemed price of $0.15 per share and it is anticipated that additional funds may need to be raised upon a successful closing of the transaction.
On behalf of the Board of Directors,
“Ron Shenton”
Ron Shenton, President and CEO
Please contact:
Infinity Minerals Corp
604-685-6806
info@infinitymineralscorp.com
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