Vancouver, BC, Canada – October 29, 2018, BOUGAINVILLE VENTURES INC.
(“Bougainville” or the “Company”) (CSE:BOG) is pleased to announce that it has signed a letter of intent (LOI) to enter into a funding and profit sharing agreement with Worm Castings Farms Inc. (“Worm Castings”), the sole owner of an Oregon State Hemp production and processing license, issued by the Oregon State Regulatory approval board.
The material terms of the LOI are summarized below.
- 1. The parties shall enter into a funding and profit sharing agreement with both companies receiving dividends. The profit sharing percentages will be stipulated in the definitive agreement.
- Bougainville will agree to issue to Worm Castings 600,000 shares of Bougainville Ventures Inc. for assets and goodwill of Worm Castings.
- Bougainville will also agree to raise $350,000 USD to be used to fund Worm Castings’ business plan. The funds are expected to be provided on the following schedule:
- $75,000 by November 7, 2018
- $75,000 by November 30, 2018 c. $200,000 by December 31, 2018
- Worm Castings will submit to Bougainville a complete list of assets to be included in the definitive agreement
About Worm Castings Farms Inc.
Worm Castings is a natural hemp company that currently has 10 acres of industrial hemp ready for harvest. They plant premium high quality cloned feminized hemp plants with 10-15% CBD and 0.3% THC resulting in maximized CBD oil content within each plant. In addition, they provide proven topsoil mix that improves plant growth by 20%. With this soil quality, they can expect to set standards in respective markets within the hemp industry.
CEO, Andy Jagpal Comments:
“The objective of this project is to extract CBD oil from Hemp stock by providing the initial capital for the continued development of the 10 acre farmland and is a step in the right direction in diversifying our portfolio of companies in the cannabis infrastructure space .”
Oroville Campus Tier -3 Tenant Update
The Company also reports that it has recently become aware that Marijuana Company of America, Inc. (“MCOA”) has purportedly terminated its joint venture agreement with the Company dated March 16, 2017 (“JV Agreement”), and that it may have commenced legal action against the Company relating to various claims. The Company has not been served with a claim and has not received a notice of default related to the JV agreement and will investigate this matter further.
If subject to a claim, the Company intends to defend vigorously and to pursue all legal actions available to it. The Company notes that the JV Agreement relating to the acre of the 4.33 acre parcel of land located at Oroville Campus will continue for occupancy for its tenant.
Oroville Campus Tier -2 Tenant Update
The Company notes that the new I-502 Tier-2 licensee tenant and lease agreement relating to the 3.33 acre parcel of land in the Oroville Campus announced in the Company’s news release dated October 23, 2018 is not subject to the JV Agreement with MCOA and indeed resides on a separate parcel of land. Operations relating to such tenant are proceeding as previously announced.