VANCOUVER, July 10, 2014 /CNW/ - Q-Gold Resources Ltd. (the
"Company") (TSX VENTURE: QGR) (http://www.qgoldresources.com) is
pleased to announce that it has executed a Letter of Intent (the
"LOI") to potentially acquire two private agricultural supply
companies that specialize in sales of growing equipment to the
international medicinal cannabis industry (the "Target
Companies"). The vendor is a private British Columbia company, and is - along with
the Target Companies, at arm's length to the Company.
Pursuant to the terms of the LOI, and subject to various closing
conditions (including but not limited to the negotiation and
execution of a formal purchase and sale agreement), Q-Gold can
acquire 100% of the issued and outstanding shares of the Target
Companies in consideration for $2.2
million, to be paid through the issuance of Q-Gold shares
and cash payments to the vendor.
The Target Companies had combined gross sales of
$6.6 million during their most
recently completed year-ends and have established strong business
relationships over the past 7 years with its suppliers and
customers. Although initially focused on retail sales in the
Canadian market, the Target Companies have entered into
the United States market in the
past 2 years as more US states have legalized medicinal marijuana,
increasing the market for growing equipment. Currently 23 US
states, plus the District of
Columbia, have legalized medicinal marijuana.
According to "The State of Legal Marijuana
Markets", published by ArcView Market Research, the United States national legal marijuana
market value was assessed at $1.53
billion in 2013 and has the potential to reach $10.2 billion over the next five years.
The Company acknowledges that, at this time,
there can be no assurance or guarantee that it will complete the
acquisition of the Target Companies, which will also be subject to
the approval of the TSX Venture Exchange. The Company will
provide further updates as they become available.
About Q-Gold Resources Ltd.
Q-Gold is a publicly traded Canadian-based mineral exploration
company currently holds over 10,000 contiguous acres of mining and
patented claims containing 5 historic gold mines in the Kenora
Mining District of Ontario.
The Company also holds 13 U.S. Bureau of Land Management mining
claims near Crown King, Arizona,
which contain a number of geophysical anomalies under investigation
as potential drilling targets.
Forward-looking statements:
Certain statements in this release are
forward-looking statements, including with respect to the proposed
acquisition of the Target Companies, and with respect to the
legal/medical marijuana market in the
United States. Forward-looking statements consist of
statements that are not purely historical, including any statements
regarding beliefs, plans, expectations or intentions regarding the
future. Such statements are subject to risks and uncertainties that
may cause actual results, performance or developments to differ
materially from those contained in the statements. No assurance can
be given that any of the events anticipated by the forward-looking
statements will occur or, if they do occur, what benefits the
Company will obtain from them. In particular, the company
cautions that the completion of the proposed acquisitions cannot be
predicted with certainty, and that there can be no assurance at
this time that the proposed acquisitions will be completed in the
manner noted above or at all. These forward-looking
statements reflect management's current views and are based on
certain expectations, estimates and assumptions which may prove to
be incorrect. A number of risks and uncertainties could cause our
actual results to differ materially from those expressed or implied
by the forward-looking statements, as well as other factors beyond
the Company's control. In addition, the projected information
regarding the legal marijuana market in the United States has not been independently
verified by the Company, and the Company does not represent nor
warrant that the actual results achieved during the projected
period will be the same in whole or in part as that
projected.
The forward-looking statements made by the
Company are made as of the date of this news release.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE Q-Gold Resources Ltd.