Toronto-based specialty pharmaceutical company Easton Pharmaceuticals (OTC: EAPH), paid Canadian-based Alliance Group $575,000 towards its agreed $1.3 million interest in 45 acres of a 135-acre agriculturally zoned parcel north of Toronto for the cultivation of cannabis.
These 45 acres are a very large parcel for the cannabis industry, comprising almost 2 million of. If Easton can cultivate a majority of these 45 acres in a reasonable time, the company could become a major producer. However, it is far behind other cultivators. It is not known yet how much money the companies will dedicate to developing the land.
Alliance has applied for licenses and expects approval within 30 to 60 days. Until revenues are generated, Easton will receive 50% of all revenues from Alliance’s businesses.
Alliance Partners are confident all hurdles to growing legalized medical/recreational marijuana will be cleared shortly, leading to production within 6 months from its first greenhouse facility. The cannabis business is estimated to generate several millions of dollars in its first year with good profit margins.
This would give Easton and Alliance a foothold in cannabis production for pharmaceutical and recreational uses where they would cultivate on a co-managed basis.
Easton’s investment and guarantee on revenues are securitized by the 135-acre property, appraised at over $8,000,000, much more than the estimate used for Easton’s investment. Easton retains the option to buy 50% of Alliance’s businesses, which include recycling, manufacturing of industrial products, and waste management with million dollar contracts in place.
Easton Pharmaceuticals is a diversified specialty pharmaceutical company involved in pharmaceutical sectors and other industries. It previously developed and owned an FDA-approved wound-healing medical drug, and currently owns topically delivered drugs to treat cancer and other therapeutic products to treat various conditions. These are in various stages of development.
Source Easton press release