MCCN signs landmark agreement with industry BEHEMOTH Industrial Hemp Farms
MCCN is pleased to announce the signing of a Letter of Interest (LOI) with Colorado Springs CO-based Industrial Hemp Farms (IHF), the world’s third-largest seller of bulk hemp-based products. This historic agreement promises to represent a significant milestone for both companies.
The proposal is for MCCN to supply IHF with it’s high-quality dried cannabis flower, to the tune of a minimum of $1M USD per month, according to the terms of the letter. There are also provisions for MCCN to supply IHF with other products for worldwide export and sales.
This will allow MCCN to expand into their currently available hectarage, which is ready to go in the anticipation of just such an agreement as this one.
IHF wants to invest heavily in MCCN
In addition, IHF has expressed the desire to invest in MCCN. The LOI details three strike prices for MCCN’s stock, $0.13, $0.17 and $0.19, respectively. Each strike price represents 8M stock options.
IHF will also have access to 5M performance shares, in tranches of 1M, 2M, and a further 2M, respectively. If all three tranches fully vest, IHF will wind up owning between 22 and 26 percent of MCCN’s total shares, and will give MCCN an additional $4M in liquid capital.
IHF will offer MCCN their expertise
IHF further has expressed its desire to provide expert help to MCCN in order to further strengthen MCCN’s R&D efforts, both on the ground in their two Colombian growing locations, and remotely. This will be a welcome exchange of valuable information between the two parties.
This will also take the form of expert participation in MCCN’s Board of Directors. Assuming the agreement goes through as planned, two people appointed by ICF will be added to MCCN’s Board of Directors, bringing the total number of board members to seven.
The breakthrough
This is very exciting news, and could be the Colombian cannabis breakthrough many of us are looking for.
MCCN is an excellent example of an undervalued stock, and I believe it’s time to take advantage of this.
