Looking forward to EAPH's next PR on JV developments with the Alliance Group.
TORONTO, ON--(Marketwired - Jun 12, 2017) - Easton Pharmaceuticals, Inc. ( OTC PINK : EAPH ), is pleased to announce, pursuant to its previously announced Letter of Intent with Canadian based -- Alliance Group -- final Terms have been mutually agreed to on a final agreement to acquire an interest in a 45 acre fully owned parcel of land for the cultivation, production and sale of medical marijuana to the cannabis industry and other revenue generating businesses.
Easton will invest up to $1.3 million cdn with Toronto based Alliance Group to acquire an interest in their 45 acres of agriculturally zoned land north of Toronto, Ontario, Canada to cultivate, produce and facilitate the sale of its production of medical marijuana on a co-managed basis. Until such time that revenues can be generated with cultivating and distributing medical marijuana, Easton will receive 50% of all revenues on Alliance's Aggregate businesses, which will start generating revenues within the next 60 days. The aggregate business is estimated to generate several millions of dollars in its first year with substantial profits. Easton's investment and guarantee on revenues are securitized by the 135 acre property which has an estimated value of $5,000,000.
This agreement would give Easton Pharmaceuticals a strong position into the pharmaceutical production of cannabis as well as have the option to retain 50% of the aggregate businesses, which include recycling, manufacturing of various industrial products and waste management. This is a very exciting time and opportunity for Easton with more details being released following a closed agreement. The agreement now resides with each sides respective attorneys for final closing. Easton and Alliance expect to have production in about 6 months from its first greenhouse with revenues in the tens of millions. This initiative not only demonstrates Easton's desire to enter the medical marijuana market, which will be federally and nationally legalized in Canada in the spring of 2018, but also demonstrates, along with previous acquisition announcements, Easton's desire to purchase strong revenue producing businesses.
"This acquisition will provide Easton with a significant revenue stream and substantial profits in a very short period, fully secured and we are excited to complete the transaction and begin production" stated Easton's CEO, Evan Karras.
