Matica Begins Legal Action Against THCD
Toronto, Ontario--(Newsfile Corp. - November 23, 2015) - Matica Enterprises Inc. (CSE: MMJ) (Frankfurt: 39N) (OTC PINK: MQPXF) ("Matica" or the "Company") announces that the Company has filed a Notice of Civil Claim in the Vancouver Registry of the Supreme Court of British Columbia naming THC Dispensaries Canada Inc. ("THCD"), Francis MacMaster, CEO of THCD and other related parties as Defendants in an effort to recoup funds and other damages suffered by Matica as a result of numerous breaches by the Defendants of the October 7th, 2014 Investment Agreement ("the Agreement").
In October, 2014 the Company signed the Agreement with THCD, a Nova Scotia company with "Ready to Build" status for a proposed free standing marijuana growing facility. The Company entered the Agreement with THCD on the basis of THCD's representations that it had nearly completed construction of the facility and that it was awaiting the pre-licence inspection by Health Canada to become the newest Licensed Producer ("LP") under the Marijuana for Medical Purposes Regulation ("MMPR") program. The Defendants stated that this inspection was expected to take place in late 2014.
The Agreement provided that, should a licence not be granted by Health Canada by October 31, 2015, the Agreement would terminate and Matica would return its 50% shareholding in THCD to the Defendants. The Company now contends that Francis MacMaster, CEO of THCD, knowingly and deliberately delayed the completion of the facility and created conditions by which the October 31, 2015 deadline would not be met. The Company has not surrendered its share of THCD and will not do so until the Court has ruled upon the merits of the claims.
Matica abided by all terms and conditions of the Agreement and forwarded funds as per the Agreement. THCD did not complete the facility and continually requested additional funds in addition to what was required by the Agreement. All of Matica's reasonable proposals were rejected by Francis MacMaster.
Currently, the facility is still not completed and is not prepared for inspection by Health Canada.
For more information on Matica Enterprises please visit the website at: www.maticaenterprises.com.
On behalf of the Board of Directors
MATICA ENTERPRISES INC.
Boris Ziger, CEO & Chairman
Disclaimer for Forward-Looking Information
Certain information in this press release may constitute forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Corporation assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Corporation. Additional information identifying risks and uncertainties is contained in the Corporation's filings with the Canadian securities regulators, which filings are available at www.sedar.com.
This news release contains statements about the Company's information that will be made available on the S&P Capital IQ Corporation Records Listing Program and the business of Matica, specifically any potential licensing under the MMPR, that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include failure to receive its Licensed Producer designation for any reason whatsoever. The forward-looking statements contained in this news release are made as of the date hereof, and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law.
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