VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 8, 2015) - Medipure Holdings Inc. ("Medipure," or the "Company") (CSE:MDH) is pleased to announce that on December 16, 2014, its wholly-owned subsidiary, Medipure Pharmaceuticals Inc. ("Medipure Pharmaceuticals"), completed the purchase of lands and premises in Maple Ridge, British Columbia (the "Property") pursuant to a Contract of Purchase and Sale dated March 3, 2014, as amended (the "Purchase Contract"), with Penwick Resources Ltd. The total purchase price for the Property was $910,000.
The acquisition was financed in part by a loan (the "First Loan") from a private lender in the amount of $590,000, secured by a first ranking mortgage against the Property. The First Loan bears interest at a fixed rate of 12.00% compounded monthly for a term of 12 months.
The acquisition was also financed by a 6 month term loan (the "Second Loan") from a private lender in the amount of $350,000, secured by a promissory note. The Second Loan bears interest at a fixed rate of 6% over the 6 month term. The Company may grant additional security for the Second Loan.
Although the Company intends to build its agricultural facilities on the Property, including operational offices, a research and development centre, and medical marijuana production facility, the Company has not yet received Ready-To-Build approval or a license to produce and distribute medical marijuana under the Marihuana for Medical Purposes Regulations from Health Canada, and there is no guarantee that such approval or such a license will be granted. The Company's ability to successfully grow, store and distribute medical marijuana in Canada will depend on our success in acquiring a production license from Health Canada. The application process is highly competitive, and once a license is obtained, any failure to comply with the terms of the license, or failure to renew the license after its expiry date, would have a material adverse impact on the financial conditions and operations of the Company.
About Medipure Holdings Inc.
Medipure is developing an extensive network of strategic partnerships with extensive experience in developing cannabinoids, medicines containing controlled substances, as well as plant-based prescription pharmaceutical products. Medipure will attempt to bring novel prescription medicines to market, providing patients with serious conditions valuable solutions that make a real difference to quality of life. Medipure will also seek to maximize the value of our products through rapid cost- effective product development, addressing market needs, and establishing strategic partnerships.
Forward-Looking Statements
Information in this press release that is not current or historical factual information may constitute forward-looking information, including future-oriented financial information and financial outlooks, within the meaning of securities laws. This information is based on certain assumptions regarding expected growth, results of operations, performance, and business prospects and opportunities. Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the companies cannot provide any assurance that it will prove to be correct. These forward-looking statements are made as of the date of this press release and the companies disclaim any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
