Wildflower Targets U.S. Marijuana Market
Ryan Allway
March 26th, 2015
News
 Wildflower Marijuana Inc. (SUN:CNX 0.195 11.43%), an aspiring producer of medical marijuana under Canada’s MMPR program, recently announced a Letter of Intent to form a Licensing Joint Venture with a licensed marijuana producer in Washington State. Under the terms of the agreement, the company’s branded products will be marketed and distributed by its Washington-based partner.
“After many years of hard work I am excited that we will finally get to see the Wildflower brand available on store shelves,” said Wildflower Marijuana Inc. President and CEO William MacLean in a recent press release. “I know consumers will embrace the Wildflower product line … this is the first step in realizing our goal of making Wildflower a global marijuana brand.”
Wildflower Marijuana will grant an exclusive license to manufacture, market, and sell certain products, recipes, retail merchandise, and promotional materials under the Wildflower brand in the State of Washington. As a part of the agreement, Wildflower will issue 1,303,800 shares and pay $250,000 to its partner, as well as contribute $1,100,000 in working capital to develop the brand.
In consideration for these concessions, Wildflower will receive a licensing fee equal to 20% of the gross sales of Wildflower branded products. The joint venture partner has been in the marijuana business since 1998 and has operated a medical dispensary since 2012, which means that these licensing revenues could be substantial and grow over the coming years as the industry matures.
Shares of Wildflower Marijuana Inc. have jumped more than 50% in recent weeks to nearly $0.20 per share.
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