May 1, 2018 – Toronto, Ontario – Matica Enterprises Inc. (MMJ - CSE) (39N – Frankfurt) (MQPXF – OTC) (“Matica” or the “Company”) is very pleased to announce that the Company has SEDAR filed the Audited Financial Statements and corresponding Management Discussion and Analysis for the year ended December 31, 2017.
As At Dec. 31, 2017 Cash $3,813,666 Marketable Securities $1,050,000 Working Capital $4,672,392
Proceeds Received Subsequent to Dec 31, 2017: Exercise of stock options $2,884,000 Exercise of warrants $2,232,886 Private Placement $ 525,000
The Marketable Securities value of $1,050,000 represents the 525,000 shares received as a third party settlement of the $700,000 claimed from THC Dispensaries Canada Inc. This is based upon third party SEDAR filings of financings closed in December 2017 at $2.00 per share. The Marketable Securities value has increased to $1,575,000 at March 31, 2018 based upon SEDAR filings of a Q1 financing closed at $3.00 per share. We expect that this value will further increase as at June 30, 2018 based upon notification of a financing currently underway at $5.00 per share.
The Company also expects that most of the remaining 807,568 broker warrants exercisable at $0.05 and the 24,711,500 warrants exercisable at $0.10 will be exercised for proceeds of $2,511,528 prior to their January 10, 2019 expiry date.
George A. Brown, Director and Interim CFO states: “The Company has never been in a greater financial position. Our projected available working capital for the planned 2018 Phase 1 construction of a 200,000 square foot greenhouse is over $10 million without additional financing. We are actively seeking quotes for construction which is expected to commence in June 2018. These are exciting times of growth for Matica. This projected $10 million is in addition to the remaining $1,400,000 to be invested in Yunify , a line of credit secured by a mortgage being extended to purchase the 181 acre property, and the projected general and administrative expenses required to operate Matica through to the end of 2018. We are also very pleased that our settlement for the $695,000 invested by Matica into THC Dispensaries Canada Inc. is valued at $1,575,000 at March 31, 2018 and is expected to increase to $2,625,000 upon the close of a reported financing underway at $5.00 per share.”