"Times Have Changed So Have We" Enertopia Corp. (OTCBB: ENRT)
Enertopia Targets Canadian Medical Marijuana Business
The Canadian government predicts a $1.3 billion industry in 10 years, and industry experts believe estimates could be closer to $2.6 billion by 2016.
From our perspective, Enertopia is uniquely positioned by being a publically traded company in both the USA and Canada with our headquarters in British Columbia, Canada. We believe we are the only public company of our kind participating in this rapidly growing business opportunity," stated Robert McAllister, President and CEO for Enertopia Corp.
"We applaud the fact that Canada has embarked on a historic and ambitious move, giving rise to a new and emerging industry that could eventually top several billion dollars and count half a million patients within Canada. We believe the industry won't face most of the legal risks and hurdles associated with growing and selling marijuana in the United States, because of existing federal legislation that governs the cultivation of marijuana in Canada.
With the new rule changes in Canada likely to eliminate some 25,000 private home growers by March 31st 2014, patients will only be able to receive medical marijuana directly through approved and licensed producers. It is here where we see Enertopia capitalizing on the consolidation opportunity from the current system: small independent operators will be challenged to comply with the stricter new legislative requirements, while larger entities operating only the most trusted and secure systems have the ability to thrive," further stated McAllister.
Enertopia issued 10,000,000 shares on signing the LOI and will issue an additional 10,000,000 shares and $1,375,000 dollars to earn up to a 51% interest in the private operation over 4 years.
The Senior Qualified Person in charge of the private medical marijuana operation will join the Enertopia Board of Directors upon closing of the definitive agreement.
*The private company has applied for a new medical marihuana license under the new Medical for Marihuana Regulations Purposes (MMRP) program. The current operation already meets many of the new and rigorous security features that Health Canada has put in place to ensure the production, quality and security of any operation is of the highest standards.
Below: October Photo of One of the Production Rooms
Enertopia Updates Shareholders on Medical Marijuana Business
Vancouver, BC--Enertopia Corporation (TOP) (the "Company" or "Enertopia") is pleased to provide this update with respect to our news release of Monday Nov 4th.
After receiving many positive phone calls and emails about the Medical Marijuana opportunity we would like to provide an update to all stakeholders of Enertopia and an audio interview which is included with this press release.
As previously outlined, the current Canadian Medical Marijuana system is transitioning from small scale user grow system to a more robust quality control and secure system where every gram produced is tracked from producer to patient.
Using the Health Canada numbers for current and projected patients the sector is expected to see 50% plus growth per year over the next 10 years in the number of patients for the Canadian domestic market only. Approved Health Canada producers under the new Medical for Marihuana Regulations Purposes (MMRP) will also be allowed to export to other countries in the World.
Health Canada estimates that the selling price will be $7.60 Canadian per gram in 2014. This would put the Canadian domestic Medical Marihuana industry at over $100 million in sales in 2014, rising to over $1.3 Billion in sales by 2024.
*We selected this sector as providing the best opportunity to provide near term cash flow with a economical initial Capital expenditure that offers sustainable growth in production as outlined above.
Under the terms of the LOI Enertopia issued 10,000,000 common shares for a total of 41,164,414 issued and outstanding common shares. The private company now has an approximate 25% equity stake in Enertopia.
-Upon signing the Definitive Agreement Enertopia will issue 5,000,000 shares and $175,000 in cash. The money will be used for expanding as new patients are signed up. The Qualified Person in Charge will join the Enertopia Board of Directors.
-Six months 1,000,000 shares and $200,000 in cash used to expand the facilities.
-One year anniversary $200,000 and 1,000,000 shares
-Two year anniversary $200,000 and 1,000,000 shares
-Third year anniversary $300,000 and 1,000,000 shares
-Fourth year anniversary $300,000 and 1,000,000 shares
Enertopia will have a 30% ownership in the private company upon signing the Definitive Agreement which will increase to 51% by the fourth Anniversary. Net profits will be shared with Enertopia's proportionate share six months from signing the Definitive Agreement.
Enertopia has been able to structure a low cost entry point into an operation that is currently operating at a capacity of 900 plants and is placed in the top 10% in Canada.
The private company will be focused to grow and produce a high quality Medical product. The upfront capital infusion will allow current facilities to be upgraded and expanded to increase plant capacity and output as new patients are signed up.
Enertopia will focus on growing the business through market awareness and other programs across Canada to attract new patients.
We are at the early stages of a dynamic, growing industry that is poised to help hundreds of thousands of patients in the relief of their current pain and suffering.
Also, on November 5, 2013, Enertopia has granted 675,000 stock options to officers, directors and consultant as per the 2011 equity compensation plan. The exercise price of the options is US$0.06 vested immediately expiring on November 5, 2018.
Enertopia's shares are quoted in the USA with symbol ENRT and in Canada with symbol TOP. For additional information, please visit http://www.enertopia.com/ or call Robert McAllister, President, Enertopia Corporation at 1.250.765.6412
Enertopia Closes First Tranche Of Financing November 26, 2013 1:18 PM
Vancouver, BC--Enertopia Corporation (ENRT) on the OTCBB and (TOP) on the CNSX (the "Company" or "Enertopia") is very pleased to announce it has closed the first tranche of $136,000 for its Private Placement announced on November 12, 2013. Enertopia will be issuing 2,720,000 common shares at $0.05 and 2,720,000 warrants that expire on November 12, 2016 with an exercise price of $0.10.
One of the individuals is a director in the first tranche of the private placement who participated for $85,000. Enertopia has and is continuing to receive very strong market interest and response in the medical marijuana business. Additionally, the Company has also been receiving interest from third parties in its other business divisions as well. Enteropia continues to be very dedicated in trying to increase shareholder value.
The securities issued will be subject to a hold period in Canada of four months and one day, or for any resale into the USA under Rule 144, six months and one day. Proceeds of the Private Placement will be used for general working capital and for corporate opportunities. The Private Placement will be subject to normal regulatory approvals.
The securities referred to herein will not be or have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
ENRT HEALTH CANADA MARIHUANA REPORT
Conservatives launching billion-dollar free market in medical MARIHUANA
The Conservative government is launching a $1.3-billion free market in medical marijuana this Tuesday, eventually providing an expected 450,000 Canadians with quality weed.
Health Canada is phasing out an older system that mostly relied on small-scale, homegrown medical marijuana of varying quality, often diverted illegally to the black market.
In its place, large indoor marijuana farms certified by the RCMP and health inspectors will produce, package and distribute a range of standardized weed, all of it sold for whatever price the market will bear. The first sales are expected in the next few weeks, delivered directly by secure courier.
“We’re fairly confident that we’ll have a healthy commercial industry in time,” Sophie Galarneau, a senior official with the department, said in an interview.
“It’s a whole other ball game.”
The sanctioned birth of large-scale, free-market marijuana production comes as the Conservatives pillory Liberal Leader Justin Trudeau’s campaign to legalize recreational marijuana.
Health Canada is placing no limits on the number of these new capital-intensive facilities, which will have mandatory vaults and security systems. Private-dwelling production will be banned. Imports from places such as the Netherlands will be allowed.
Already 156 firms have applied for lucrative producer and distributor status since June, with the first two receiving licences just last week.
The old system fostered only a cottage industry, with 4,200 growers licensed to produce for a maximum of two patients each. The Mounties have complained repeatedly these grow-ops were often a front for criminal organizations.
*The next six months are a transition period, as Health Canada phases out the old system by March 31, 2014, while encouraging medical marijuana users to register under the replacement regime and to start buying from the new factory-farms.
There are currently 37,400 medical marijuana users recognized by the department, but officials project that number will swell more than 10-fold, to as many as 450,000 people, by 2024. Continue Reading
THE PROFIT POTENTIAL IS ENORMOUS.
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