TORONTO, ON--(Marketwired - June 02, 2014) - Easton Pharmaceuticals Inc. (OTC: EAPH) announces it has signed an agreement to purchase an interest in a pending medical marijuana operation.
After several months of painstaking negotiations with several medical marijuana (MMJ) initiatives and companies in the lucrative MMJ industry in both the United States and Canada, Easton Pharmaceuticals is pleased to announce that it has entered into an agreement with Canadian based MDRM Group (Canada) Ltd., a wholly-owned subsidiary of Modern Mobility Aids, Inc., a Nevada corporation (OTCBB: MDRM). The agreement allows Easton to purchase up to 49% of a private Canadian medical marijuana company which has submitted an application for a federal growers license and has received a letter to build from Health Canada under Canada's new MMPR system.
The agreement provides Easton Pharmaceuticals with an exclusive option to purchase any amount between 10% and 49% of the private medical marijuana company with no funds being advanced until the license has been granted by Health Canada. The private MMJ company has been in receipt of the letter to build from Health Canada for the past several months, has already finalized its build-out of its growing facility and is awaiting a final inspection prior to receiving its growers license. The private medical marijuana company whose name is being kept confidential until its final inspection has been completed, is one of what is believed to be a limited number of companies who have received letters to build from Health Canada, with only 13 companies having thus far received MMPR licenses in Canada. The application and growing facility of the private medical marijuana company is currently for approximately 5,000 sq. ft. of growing space. The facility is situated on acreage already zoned for agriculture and allows for the expected and planned expansion to accommodate a maximum of 50,000 sq. ft. of growing space.
Presently, Easton Pharmaceuticals maintains cash on hand to purchase approximately one-half of its exclusive option with additional commitments from its finance partner for up to another $5 Million in additional financing which would allow Easton to purchase all of its option from MDRM Canada.
This agreement represents the first and potentially the most lucrative medical marijuana agreement that Easton has closed on with other anticipated closing agreements and announcements in the medical marijuana industry. Easton Pharmaceuticals additionally announces it has signed an LOI agreement and has entered into negotiations with UMED Health and Wellness Centers who currently own an operating medical marijuana dispensary in the State of Michigan who maintain approximately 1500 patients. Easton's discussions involve an investment into UMED as well as the opening of new additional dispensaries in the State of Michigan where Easton would potentially maintain a majority ownership in.
About Easton Pharmaceuticals
Easton Pharmaceuticals is a specialty pharmaceutical company involved in various pharmaceutical sectors including medical marijuana, that owns, designs, develops, and markets topically-delivered drugs and therapeutic / cosmetic healthcare products, focused on cancer and other health issues related towards male and female sexual dysfunction, wound healing, pain, motion sickness, scar and stretch marks, cellulite, varicose veins and other conditions. The company's gel formulation is thought to be an innovative and unique transdermal delivery system. Easton Pharmaceuticals' product "VIORRA" is an over-the-counter, topical daily use product and aid for the treatment to restore and improve vaginal moisture and elasticity which is believed to have a positive effect on women's sexual desire and arousal, FSAD (Female Sexual Arousal Disorder); the world market for these female conditions and the medical marijuana industry is conservatively estimated to be in the billions.
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