VANCOUVER, British Columbia, April 15, 2019 — BOUGAINVILLE VENTURES INC. (“Bougainville” or the “Company”) (CSE:BOG) is pleased to announce that it has entered into a non-binding letter of intent (the “LOI”) dated April 12, 2019, to acquire a 25% ownership interest in five (5) Mountain Mellow Alberta locations in exchange for cash and common shares of Bougainville Ventures, Inc.
Mountain Mellow management is in their final stage of AGLC approval, has secured two (2) prime retail locations in the Province of Alberta and is in the process of securing a minimum of three (3) more. Mountain Mellow locations may be leased and/or owned and will have continuous daily traffic of no less than 5,000 drive by vehicles per day.
Andy Jagpal, President of Bougainville says, “Bougainville has gained a tremendous opportunity with Mountain Mellow to become the Premier Cannabis retailer in Alberta. Mountain Mellow and Bougainville Ventures are committed to providing the perfect consumer retail experience and Mountain Mellow will add to the Bougainville strategy in its retail expansion.”
Pursuant to the terms of the LOI, the Company will acquire 25% of the issued and outstanding common shares in the capital of Mountain Mellow in exchange for Two hundred and Fifty Thousand ($250,000.00) Canadian dollars plus Seven Hundred and Fifty thousand ($750,000.00) in common shares share’s at a deemed share value as set at close of market on the fifteenth (15) day after the opening of each AGLC approved and occupancy permitted location, for an aggregate consideration of $5,000,000. Bougainville has also secured the right of first refusal for any additional locations garnered by Mountain Mellow management, terms of which are to be determined in the Definitive Agreement.
The completion of the Definitive Agreement is limited to the following; (i) the negotiation and execution of a definitive agreement, (ii) completion of a satisfactory due diligence by Bougainville and Mountain Mellow; and (iii) receipt of all required regulatory, corporate, permits, Canadian Securities Exchange requirements and any other conditions necessary to complete the transaction.