Cavan Enters Into a Non-Disclosure and Standstill Agreement for Agricultural Lands in the Philippines
Published: Nov 27, 2014 1:36 p.m. ET on.mktw.net/1AWFrse
VANCOUVER, BC , Nov 27, 2014 (Marketwired via COMTEX) -- Cavan Ventures Inc. (CVN) ("Cavan" or the "Company") has entered preliminary discussions with a private arm's length vendor regarding 150 hectares of agricultural land in the Philippines. The agricultural land is located approximately 3.5 hours from Manila, the Philippines' largest port and capital city.
The Company intends to begin its due diligence analysis of the agricultural land immediately, particularly as to its suitability for the construction of a hemp cultivation and manufacturing plant for hemp and cannabinoid products. As previously announced (see the Company's news release on March 25, 2014, and the clarifying news release on November 24, 2014), the Company intends to diversify its operations into the hemp and cannabinoid industry.
The Company and the private vendor have entered into a non-disclosure and standstill agreement with respect to these discussions. At this time, no further deal terms have been reached, nor has the Company entered into any letters of intent or definitive agreements with respect to the agricultural lands. As the Company's discussions remain at a preliminary stage only, there can be no assurance or guarantee that the Company will enter into a binding agreement with respect to the acquisition of such agricultural lands. The Company will provide further updates as they are available.
As such, the Company further cautions investors that: (i) the Company does not presently have regulatory approvals to become a producer of hemp or cannabinoid products in the Philippines; and (ii) any transaction resulting in the Company's entry into the hemp/cannabinoid industry, or a "spin out" plan of arrangement of the Company's assets, will require various approvals, including that of the Company's board of directors, shareholders the TSX Venture Exchange, and, with respect to a plan of arrangement, court approval, and none of these approvals have been sought at present.
The Hemp Industry in the Philippines
The Philippines have optimal growing conditions for industrial hemp, which would allow for up to three hemp crop cycles a year, as opposed to only one or two cycles within Canada and other similar environments. Additionally, the proximity of the Philippines to Asian markets is attractive to the Company and its growth plans. Though the Company will conduct further analysis, there does not appear at present to be restrictions on processing hemp in the Philippines, nor clear regulation standards or restrictions on industrial hemp farming in the Philippines. If the Company proceeds with a hemp project in the Philippines, it will be required to comply with all local regulations, and there can be no assurance or guarantee that the Company will be able to do so.
The Global Hemp Market
Hemp is one of the earliest domesticated plants known. It has been cultivated by many civilizations for over 12,000 years and currently over 30 countries are producing industrial hemp. Global hemp production increased from 250 million pounds in 1999 to more than 380 million pounds in 2011. In 2013 alone the U.S. retail hemp market was valued at 581 million with sales in US conventional retailers growing by 26.5%. There are currently over 50,000 different applications that hemp is used for on the market today including Industrial textiles, consumer textiles, paper, building materials, foods, industrial products and personal hygiene to name a few. Even various car manufacturers are integrating hemp into their vehicles including Audi, BMW, FORD, GM, Chrysler, Honda, Mercedes, Mitsubishi and Porsche and Volkswagen. For example, Mercedes C-Class contains up to 20kg in each car. With increased social acceptance of industrial hemp these numbers will only continue to grow.
For more information visit the website at www.cavanventuresinc.com.
ON BEHALF OF THE BOARD
Peter P. Swistak, President
Forward Looking Statements:
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's discussions regarding a potential acquisition of agricultural lands in the Philippines, the Company's plans to operate in the hemp/cannabinoid sphere, the hemp industry in the Philippines, and the global hemp industry generally. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future and statements concerning the Company proceeding with any acquisitions or other transactions in the hemp/cannabinoid sphere. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. In particular, the Company cautions that any potential transactions cannot be predicted with certainty, and there can be no assurance at this time that all required or desirable approvals and consents to complete proposed transactions will be achieved, or that any proposed transactions will be completed at all. These forward-looking statements reflect management's current views and are based on certain expectations and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including factors beyond the Company's control. These forward-looking statements are made as of the date of this news release.
Neither the 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Cavan Ventures Inc. Peter P. Swistak President 604 683 3995 Toll Free: 888 945 4770 Fax: 604 683 3988 www.cavanventuresinc.com
SOURCE: Cavan Ventures Inc.
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