CWNM CWNM
Crown Marketing Taps 100 Million Dollar Fund for Medical Marijuana
1 minutes ago - DJNF
Crown Marketing Taps 100 Million Dollar Fund for Medical Marijuana
CHAPEL HILL, NC--(Marketwired - May 9, 2013) - Crown Marketing Inc. (OTCQB: CWNM) is pleased to announce that Crown has signed an agreement with a 100 million dollar fund to provide medical marijuana producers with financing for their commercial real estate needs. Crown will conduct these operations through a wholly owned subsidiary, Joint Venture Solutions Inc. ("Company").
Company management sees tremendous growth potential in financial services which cater to medical marijuana operations, for two independent reasons.
Firstly, 18 states and the District of Columbia have recently ended the prohibition of medical marijuana. As a result of this policy reversal, the Company expects a forthcoming explosion in the consumption of medical marijuana in those States. Current inefficiencies in this previously untapped market are likely to yield enormous profit margins for the relatively small number of producers who are active in the industry.
Secondly, although several States have lifted the ban on marijuana, the federal prohibition remains in place. This fissure between state and federal regulation has created a complex conflict of law issue that most mainstream banks and other lenders wish to avoid, for fear that they may face civil or criminal penalties for conspiring to break federal law.
The Company has entered into a memorandum of understanding (MOU) with one lender who controls 100 million dollars. The MOU represents a shared willingness, by and between the Company and the lender, to provide these nascent corporations with much needed loans to finance their real estate needs.
Medical Marijuana related finance operations will likely be particularly profitable for Joint Venture Solutions because Medical Marijuana industry borrowers are unable to access the traditional avenues of purchase order, mortgage based, or other financing. Due to the constraints on the number of servicers willing to support these industry professionals, the principals operating medical marijuana growth houses and dispensaries are willing to pay markedly above the market rate for basic financial services.
Joint Venture Solutions Inc. and the handful of other lenders willing to service this burgeoning industry stand to make outsized profit margins as a result.
About the Subsidiary:
Joint Venture Solutions, Inc. ("JVS" or "Company") will focus on the emerging medical marijuana industry. Over the short term, the Company will deal exclusively in financing operations relating to commercial real estate in the medical marijuana industry. Once the Company has established a secure, low-maintenance cash flow through its financing operations, it will reinvest these monies into research and development pertaining to Crown's drug delivery technology and potential uses in the medical marijuana industry. Cannabinoids and cannabidiol, or CBD's function similarly to THC, but without a psychotropic effect.
The Company intends to research the effect of Crown's patented drug delivery technology on time released diffusion of CBD's on patients with a wide array of maladies.
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