Marijuana Company of America Withdraws From JV With Global Hemp Group
The Escondido, California-based company opted for the move in order to switch the focus to its hempSMART CBD Consumer Products Division.
Under the dissolution terms, GHG agreed to make two cash payments to MCOA in the months to come and grant it $185,000 worth of common stock from its treasury to acquire the joint venture fully.
Jesus Quintero, MoM's CEO and CFO, stated that this was the "perfect time for us to exit our Joint Venture."
"We're committed to adapting to the changing cannabis market in order to maximize our Company's growth," continued Quintero.
Initially, the agreement was formed in May 2018, between MoM, GHG, and the Oregon-based TTO Enterprises Ltd., which sold its 15% interest in the joint venture for $30,000 to the other two parties.
Its purpose was to launch a project aimed to commercialize industrial hemp cultivation on the MoM's and GHG's parcel of real property.
"We have already begun our new phase of development, and expect to see an increase in revenue during the remainder of the year with added international expansion," added Quintero.
In June, the company shook up its board by welcoming Marco Guerrero to its ranks, tapping him to serve as a liaison for Brazil and bring it closer to the market in South America.
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