NEWS RELEASE | Monday, August 27th, 2018
Cerus Energy Group (TSX-V:CEA) (“Cerus” or the “Company”) is pleased to announce that its subsidiary Camarico Group Ltd. (“Camarico”) and One Eleven Inc. (“One Eleven”), have executed a term sheet outlining a funding arrangement for the development of One Eleven’s marijuana development near Wynyard, Saskatchewan.
One Eleven is a late-stage licensee with Health Canada, under the Access to Cannabis for Medical Purposes Regulations (ACMPR). One Eleven is managed by a team of experienced commercial agricultural producers and professional technology developers with an extensive background in the United States licensed cannabis industry. One Eleven has based their initial operation’s plan on 20-acres of company-owned land and they are “permitted” to start construction immediately.
Cerus/Camarico’s subsidiary Lomac Canada Ltd. and One Eleven have agreed to enter into an arms length term sheet consisting of a Convertible Debenture of $5,000,000 CAD (0% interest for 24 months) to One Eleven. In return, Lomac Canada will receive 48% of the issued outstanding shares, upon receipt of One Eleven’s license to produce and sell marijuana from Health Canada. In addition, Lomac Canada will provide a Balloon Loan of $2,500,000 CAD on a 5-year term at a 10% interest rate with a 12-month interest holiday, to fund One Eleven’s start-up and initial operating expenses. No finders/referral fees are applicable.
Furthermore, One Eleven has agreed to provide “license extensions” through its primary license and facility management, to facilities owned and held within the Camarico Group and its subsidiaries, including the recently approved Georgetown Development located in Vulcan County, Alberta. In exchange for the licensing and management services, One Eleven will be paid a management fee and receive a 10% share of the Net Profits from the managed operation.
Camarico Chief Executive Officer R. Mackenzie Loree stated:
"We are extremely pleased and excited to work with One Eleven Inc. and their dedicated team of professionals. Their agricultural roots in crop production and management services, combined with the technological experience for advanced production and management systems, is a unique combination in this emerging market. We look forward to working with One Eleven through the development and production phases of our mutually beneficial relationship. This strategic relationship with One Eleven, will fast track our combined business objectives while sharing in the benefits of commercial success.”
For further information on Cerus and Camarico Group operations, please visit the Camarico website at: www.camarico.ca.