Easton Pharmaceuticals Announces New Non-Dilutional Financing Source to Be Utilized Towards Its Medical Marijuana Initiative ...
04 Juni 2014 - 2:48PM
Marketwired
Easton Pharmaceuticals Announces New Non-Dilutional Financing
Source to Be Utilized Towards Its Medical Marijuana Initiative and
Acquisitions
TORONTO, ON--(Marketwired - Jun 4, 2014) - Easton
Pharmaceuticals Inc. (OTC: EAPH) announces it has located a new
source of non-dilutional financing.
As a result of Eastons non refundable deposit towards the
closing on its recently announced medical marijuana agreement where
Easton maintains an exclusive option to purchase up to 49% of a
private Canadian medical marijuana company who has submitted an
application for a federal growers license, Easton initiated
discussions and received a commitment with a private accredited
investor for additional financing to replace its existing source.
The new financing option is conditional upon funds being solely
used towards the purchase of its 49% option in the private Canadian
medical marijuana company once a growers license has been issued.
The new financing terms calls for funds being advanced as a
convertible debenture loan secured by assets purchased in its
exercised option in the medical marijuana company whose name is
being kept confidential until its final inspection has been
completed. Should Easton choose this financing option it would
greatly reduce its dependence on its REG. A financing which was
recently filed with the Securities and Exchange Commission and is
awaiting any comments. Easton was previously financed $1 Million
through regulation S 504 offerings.
Easton has been provided a status update and been notified that
the build out of the MMJ facility as per the MMPR application with
Health Canada is nearing completion and will soon be able to
schedule an inspection which is the last step prior to receiving a
federal growers license. The facility is situated on acreage
already zoned for agriculture and allows for the expected and
planned expansion to accommodate a maximum of 50,000 sq. ft. of
growing space. Only 13 growers licenses have thus far been issued
nationally from Health Canada. The private MMJ company is currently
in possession and is one of what is believed to be only 40 plus
companies who have received a letter to build from Health Canada.
Recent articles and health Canada estimates put the amount of MMPR
applications submitted with health Canada at 843 with 25 new
applications being submitted every week. It is believed that only a
small portion of these applications will have any real chance of
obtaining a letter to build, let alone a growers license. Before a
license is issued, producers must demonstrate how they meet
extensive personnel security requirements, physical security
requirements, record keeping equipment, and quality control
requirements.
As per statistics obtained from current producing companies who
have been growing and producing under the previous MMAR system,
medical users on average consume about 1 to 3 grams daily. The
costs to grow marijuana range on average $1.40 per gram which does
not include marketing and dispensary costs. These grows are then
turned around and on average are sold between $8 to $12 per gram.
Some compassion clubs do rarely sell the product as low as $4 per
gram, but on average there is a substantial profit margin if costs
are well maintained, which is why medical marijuana is being
classified and expected to become one of the most profitable and
fastest growing industries. In August the State Of California is
expected to vote on approving and legalizing medical marijuana to
possibly join or vote alongside other states such as Colorado,
Illinois, Washington, Arizona, Nevada, NY and several others. The
current liberal minority government in Canada has already stated
and indicated its willingness to possibly legalize marijuana for
recreational use and follow the lead from the State of Colorado
should it be voted into power.
About Easton Pharmaceuticals
Easton Pharmaceuticals is a specialty pharmaceutical company
involved in various pharmaceutical sectors including medical
marijuana, that owns, designs, develops, and markets
topically-delivered drugs and therapeutic / cosmetic healthcare
products, focused on cancer and other health issues related towards
male and female sexual dysfunction, wound healing, pain, motion
sickness, scar and stretch marks, cellulite, varicose veins and
other conditions. The company's gel formulation is thought to be an
innovative and unique transdermal delivery system. Easton
Pharmaceuticals' product "VIORRA" is an over-the-counter,
topical daily use product and aid for the treatment to restore and
improve vaginal moisture and elasticity which is believed to have a
positive effect on women's sexual desire and arousal, FSAD (Female
Sexual Arousal Disorder); the world market for these female
conditions and the medical marijuana industry is conservatively
estimated to be in the billions.
For More Information Visit:
http://www.eastonpharmaceuticalsinc.com
Safe Harbor
This news release may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
(The "Act"). In particular, when used in the preceding of
discussion, the words "anticipate," "pleased," "plan," "confident
that," "believe," "expect," "possible" or "intent to" and similar
conditional expressions are intended to identify forward-looking
statements within the meaning of the Act and are subject to the
safe harbor created by the Act. Such statements are subject to
certain risks and uncertainties and actual results could differ
materially from those expressed in any of the forward-looking
statements. There are no guarantees or assurances that any
proposals, initiatives or negotiations will result in what the
company had originally intended. Any investment made into Easton
Pharmaceuticals would be classified as speculative and risky. Such
risks and uncertainties include, but are not limited to, market
conditions, general acceptance of the company's products and
technologies, competitive factors, the ability to successfully
complete additional or adequate financing, government approvals or
changes to proposed laws and other risks and uncertainties further
stated in the company's financial reports and filings.
Contact: Carla Pepe Easton Pharmaceuticals Inc. Tel: +1(416)
619-0291 Tel: +1(347) 284-0192 Email:
info@eastonpharmaceuticalsinc.com
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