Source: menafn.com
LAVAL, CANADA, Apr 09, 2014 (Menafn - Marketwired via COMTEX) --Axe Exploration Inc. (the "Corporation" or"Axe") announces its intention to evaluate new business opportunitiesand eventually redirect its business to the medical marijuana orindustrial hemp industries. This approach is part of the ongoingefforts of the Corporation to increase shareholder value. Axeconsiders that it currently now an obligation towards itsshareholders to explore all possible avenues in order to make thebest possible use of its status as a public vehicle, including anypossible business opportunities in the new sector of medicalmarijuana that could be presented to it. Axe currently has over CDN2,000,000 in cash, allowing it greater flexibility and ability thanpeers to be a leader in the current market. In addition, these emerging industries are in the process of significant regulatory and legal reform that offers compelling growth opportunities.
Although no decision has been taken, Axe would like to consolidate fragmented growers and work with dispensaries to obtain a license under the new Marijuana for Medical Purposes Regulations (MMPR). Forexample, Axe could plan to partner with and provide financing tomedical marijuana and industrial hemp companies, thus providing Axewith an equity share in each business and/or royalty on sales.Management believes that this could allow Axe to share in the growthand cash flow from these explosive industries. Axe could also reviewopportunities in the United States where legislation permits, andwill look to expand operations throughout North America with theforward looking concept that more American States may adopt this newpro Marijuana legislation. The United States is undergoing Medical Marijuana reform - with 20 states now recognizing legal Medical Marijuana, including Colorado and Washington State that have legalized recreational use, with additional states contemplating legalization.
With marijuana now legal in Colorado and Washington, and tourism booming, several investors and financial pundits are wondering how fast the marijuana industry will grow and if it could become national. The ArcView Group, a San Francisco-based investing and market research firm, estimates the national legal market (including recreational and medical marijuana) at 1.53 billion in 2013 and expects it to grow to 2.57 billion by the end of 2014, with marijuana sales in Washington and Colorado pulling in 316 million and 802 million, respectively. Arc View says the national market could reach 10.2 billion in five years.(http://money.usnews.com/money/personal-finance/mutual-funds/articles/2014/03/14/the-economy-of-pot)
Upcoming changes in Medical Marijuana licencing will allow forlicensed producers to grow on a larger, commercial scale. HealthCanada states: "The Marijuana Medical Access Program (MMAP) has endedon March 31, 2014. This is also the date that all Authorizations toPossess, Personal-Use Production Licenses and Designated-PersonProduction Licenses expire. As of April 1, 2014, the only legal access to marijuana for medical purposes is through licensed producers under the Marijuana for Medical Purposes Regulations(MMPR), even if you have an authorization to possess or license to produce that has a later date."(http://www.hc-sc.gc.ca/dhp-mps/marihuana/index-eng.php)
The Industrial Hemp industry is also currently undergoing significant reform. "Hemp is a renewable, reusable and recyclable resource. Aswith many new crops, there has been considerable fluctuation ofproduction acreage. In 2003, over 2,700 hectares (6,700 acres) weregrown across Canada, mostly concentrated on the Prairies; by 2013,66,671 acres have been licensed for cultivation. Hemp has been grown with success from coast-to-coast." (www.hemptrade.ca)
Mr. David Mc Donald, President and CEO, notes that the medicalmarijuana and industrial hemp industries have become one of, if notthe most explosive growth industries in existence today. "We arecurrently in the process of evaluating our company in order toeventually benefit from this tremendous growth potential. Given that the Corporation has no experience in these areas, Management is focused on attracting some of the industry's top expertise".
IN THE EVENT WHERE AXE IDENTIFIES SOME OPPORTUNITIES OR THE ESTABLISHMENT OF BUSINESS RELATIONSHIPS IN THE FIELD OF MEDICAL MARIJUANA, ANY TRANSACTION WOULD BE SUBJECT TO THE POLICIES AND PRIOR APPROVAL OF THE TSX VENTURE EXCHANGE.
THE CORPORATION HAS NO EXPERIENCE IN THIS FIELD AND NO ASSURANCE CANBE GIVEN TO THE EFFECT THAT THE COMPANY WILL INTEGRATE THE FIELDS OFMEDICAL MARIJUANA OR INDUSTRIAL HEMP.
CURRENTLY, NO TRANSACTION IS IN PLACE AND THERE IS NO CERTAINTY THAT A NEW PROJECT WILL BE CONCLUDED IN THE FUTURE.
ABOUT AXE EXPLORATION INC.
Axe is a mining exploration company listed on the TSX VentureExchange under the symbol AXQ. Axe intends to evaluate all the opportunities that offer the medical marijuana industry within North America.
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.
For more information, visit the company's website atwww.axeexploration.com or SEDAR's website at www.sedar.com.
FORWARD LOOKING INFORMATION
This News Release contains forward-looking statements. The use of anyof the words "intention", "may", "evaluate" and similar expressionsare intended to identify forward-looking statements. Although theCompany believes that the expectations and assumptions on which theforward-looking statements are based are reasonable, undue relianceshould not be placed on the forward-looking statements because theCompany can give no assurance that they will prove to be correct.Since forward-looking statements address future events andconditions, by their very nature they involve inherent risks anduncertainties. These statements speak only as of the date of thisNews Release. Actual results could differ materially from thosecurrently anticipated due to a number of factors and risks.
Contacts:
Contact and Information
David Mc Donald
President and CEO
450.622.5785
info@axeexploration.com
www.axeexploration.com
Investor Relations
Patrick Wood
(416) 473-9133
pat.wood@tormontgroup.com
www.tormontgroup.com
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