2014-04-02 17:47:58 -
Vancouver, British Columbia CANADA, April 02, 2014 /FSC/ - Chlormet Technologies Inc (CMT - TSX Venture), ("Chlormet" or the "Company") is pleased to announce that it has received a final copy of its independent economic analysis on the Company's entry into Canada's emerging medical marijuana industry.
The report provides the Company with an in depth look into the Canadian medical marijuana sector and an assessment of the market opportunity for the recently announced exclusive option to acquire 100% of AAA Heidelberg, a private Ontario company, previously referred to as PrivCo (see news release dated March 27, 2014).
About AAA Heidelberg:
AAA Heidelberg currently owns a secure 8,800 square foot commercial building and land located in London, Ontario. Since December 2013
AAA Heidelberg has had an application pending with Health Canada for a new MMPR (Marihuana for Medical Purposes Regulations) license for the production of up to 1,320 pounds of marijuana in the first year.
As a result of the early application, the licensing process is well under way. Upon completion of the interior of the building to the strict guidelines of Heath Canada, which will include four grow rooms, labs, offices and secure storage for the product, Health Canada will be asked to perform a final inspection to complete the licensing process.
AAA Heidelberg's personnel includes an experienced grow-master who is currently a 'designated grower' under current MMAR licensing. The current crops, that are being grown under the continuing MMAR licensing and are currently thriving due to the injunction against the Health Canada, include ten different strains of marijuana that range from high CBD content to high THC content and are anticipated to be sold for between $5 to $15 per gram depending on the strain.
As of April 1, 2014, new producers will be required to be licensed by Health Canada and to conform to strict new regulations. As per Chlormet's recently received economic analysis, "The new regulations suggest that the medical marijuana industry will be put on the same footing as the pharmaceutical manufacturing sector. The regulations are quite onerous in terms of production distribution and security standards. Health Canada will only issue licenses to producer/distributors that they deem capable of meeting these detailed regulatory standards. That suggests that Canada will very rapidly evolve from a market of thousands of informal producers to one of a much smaller number of sophisticated producers."
It is AAA Heidelberg's intent to become a growing player in the burgeoning medical marijuana industry to position themselves as a quality producer focusing on research and development to create unique patentable strains of cannabis as "The new regime requires a degree of supply chain and logistical sophistication well beyond the means of those who have, up to this point, grown for their personal use."
Timing and outcome:
The Company does not know nor can it predict the timeframe for AAA Heidelberg to complete the application process and receive a response from Health Canada. Accordingly, there is no certainty that AAA Heidelberg will be granted a licence under the MMPR, or that the Transaction will be completed. Investors should carefully consider the risk of investing in the shares of the Company prior to completion of the Transaction.
Should AAA Heidelberg be granted a licence, the Company intends to complete the Transaction by signing a Definitive Agreement. The completion of the Transaction will be considered a Change of Business and at that time the Company will make a filing with the TSX Venture Exchange, create a disclosure statement and convene a special meeting to seek shareholder approval.
About Chlormet Technologies
Chlormet Technologies Inc. has an experienced management team with a growth strategy to develop a diversified portfolio of projects. The Company's main objective is to add shareholder value through cost efficient acquisitions, joint ventures, and marketing while maintaining a lower risk profile through project diversification and sound financial management.
ON BEHALF OF THE BOARD OF DIRECTORS
Interim President and CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.
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Source: Chlormet Technologies Inc. (TSXV: CMT)
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