On Monday, MCOA announced that Northern Lights Distribution (NLD), a subsidiary of Natural Plant Extract of California (NPE), had signed a letter of intent with Alpha Private Equity & Capital LLC to form a joint venture called Magnolia Extracts LLC.
In April, MCOA acquired 20 percent ownership interest of NPE and signed a joint venture agreement to form a new cannabis delivery company under the name Viva Buds.
NLD has entered into the partnership and will provide $1.5 million in funding toward the costs of building out a new production facility.
“As our portfolio of legal cannabis and industrial hemp investments and joint ventures represent a significant portion of our growth strategy,” says MCOA CEO Don Steinberg. “We believe this step represents a strong move forward in establishing our foothold in the market.”
Steinberg says that the move will allow the company to advance to the next stage of their plan with NPE, securing access to more than 18,000 square feet of building space.
“We are confident this joint venture will serve very beneficial for us as well as our partner, NLD,” says Steinberg.
Further details on the letter of intent can be found at the U.S. Securities and Exchange Commission website.