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THC to explore Net Gram Royalties in Medical Marijuana
April 10, 2014
Thelon Capital Ltd. (the “Company”) (THC – TSX.V) is pleased to announce, as part of its ongoing evaluation of new opportunities, that it has entered into an arrangement with Net Gram Royalty Co. (“NGR”), a private consultant, to further explore and to help negotiate Net Gram Royalty agreements with various licensed producers. Mr. Scott Walters says “We are excited to work with NGR to further define the opportunity of supporting the growing network of licensed producers of marijuana for medically presecribed use in Canada . We feel the use of a net gram royalty model fits the needs of this industry by supporting the growers whose work benefits specific needs of patients."
About Net Gram Royalty Co. (“NGR”)
NGR provides non-equity funding to licensed producers (“LPs”) of medical marijuana. Its goal is to provide diversified risk mitigated exposure to the medical marijuana market for investors, and a robust supply of medical marijuana for patients. NGR will meet this rapidly growing demand for funding in the medical marijuana production sector using a commodity streaming model, rather than a direct equity investment. Thus NGR mitigates early stage venture risks.
NGR is in the process of due diligence with several producers to fund dried marijuana royalty agreements in its first twelve months of operation. NGR's business model is highly scalable, and will efficiently serve the needs of medical marijuana patients, LPs, and investors within the parameters of a rapidly expanding market.
NGR’s Net Gram Return royalty model is analogous to the method used by successful mineral commodities streaming companies such as Sandstorm Gold (SSL), Silver Wheaton Corp (SLW), Franco Nevada (FNV) and others.
Net Gram Return royalties are based on the value of production or net proceeds received from the legal sale of medical marijuana by a Licensed Producer (LP) from an indoor growing operation under Canada’s Federal “Marijuana for Medical Purposes Regulations”. These sales are made direct to registered patients from the LP. This type of marijuana royalty potentially provides for significant and tax advantaged cash flow that is free of any operating or capital costs and environmental liabilities and allows for capital risk reduction in gaining exposure to a developing marketplace.
The Company continues to evaluate new projects, including, but not limited to, opportunities in agriculture, finance, and resources. At this time, no transactions are in place, nor is there any assurance that a new project will be concluded in the future."
ON BEHALF OF THE BOARD OF DIRECTORS
Scott Walters
President & Chief Executive Officer
THELON CAPITAL LTD.
1500-888 Dunsmuir St
Vancouver, BC. V6C 3K4
Phone: (604) 682-1643 Fax: (604) 682-1666
Neither 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 of accuracy of this release.
This news release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company. The forward-looking statements or information contained in this news release are made as of the date hereof and the Company does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.