TORONTO - Alphala Corp. (OTCBB:ALPC) is pleased to announce that it has entered into a Letter of Intent with FV Pharma Inc., a private Ontario, Canada corporation ("FV Pharma"), and certain shareholders of FV Pharma, to purchase all the Class B non-voting shares of FV Pharma. FV Pharma is striving to establish a state of the art medical marijuana production facility located in Cobourg, Ontario, one (1) hour east of Toronto.
FV Pharma has applied to Health Canada to become a licensed commercial producer of marijuana under the Government of Canada's new Marijuana for Medical Purposes Regulations (the "MMPR"). The company's application is in the personal security checks stage of the process, and an in-depth review verification of the application must still occur before Health Canada conducts a pre-license inspection of its proposed facility. If successful, FV Pharma will receive a license to produce marijuana for medical purposes. FV Pharma is one of many companies seeking to start producing marijuana on a commercial scale under the MMPR, which became effective on April 1, 2014.
The Letter of Intent states that the Company will issue an aggregate of:
150,000,000 shares of its common stock to the holders of FV Pharma's Class B shares upon the closing of the transaction, which is expected to take the form of a share exchange. The completion of the transaction is subject to standard due diligence by both sides and the successful negotiation of a definitive agreement.
The company will release additional information regarding the status of FV Pharma's application under the MMPR promptly upon the receipt of any such information from Health Canada.