BELGRAVIA CAPITAL signs Binding Letter of Intent with R&D Pharma Corp., a developer of a vertically integrated medicinal cannabis business in Jamaica, to invest Canadian $1,000,000
TORONTO, Feb. 28, 2018 — BELGRAVIA CAPITAL INTERNATIONAL INC. (CSE:BLGV) (OTCQB:BLGVF) (“Belgravia Capital”, “Belgravia”, or the “Company”) is pleased to announce the execution of a binding letter of intent with R&D Pharma Corp. (“RDP”) for the investment of one million Canadian dollars (Cdn$1,000,000) at a price of $0.25 per common share. RDP is a Canadian private corporation developing a vertically integrated medicinal cannabis business in Jamaica. The completion of the investment transaction is subject to the completion of due diligence.
Mr. Mehdi Azodi, President and Chief Executive Officer of Belgravia stated: “We are pleased to be expanding our investments in the legal international medicinal cannabis production and distribution industry. Today, Canadian publicly traded ACMPR-licensed producers arguably have mature valuations. On the other hand, jurisdictions outside Canada, such as Jamaica, Israel, Australia, South America and Germany, present attractively valued early opportunities in the international medicinal cannabis landscape. Belgravia has been studying developments in various jurisdictions and we believe that this early investment in Jamaica has the potential to realize substantial investment returns to our shareholders, given the early valuation levels. Recently, Canopy Growth Corp. announced a strategic partnership in Jamaica, thereby indicating the possibility for prudent investment in Jamaica where the right partners are selected.“
Mr. Azodi continued: “Belgravia has previously made a portfolio investment in a company developing medicinal cannabis operations in South America. Our entry into Jamaica involves a substantial partnering transaction in this well-known jurisdiction with strong medicinal cannabis branding potential. We look forward to working with RDP as we together develop and grow this business. RDP management includes persons resident in Jamaica and also persons with Jamaican heritage who have a full commitment to the industrial development of Jamaica. Executives of RDP include professionals experienced in legal cultivation and production of medicinal cannabis products in Canada, and also with experience in finance and retail distribution and entertainment. They also have an excellent knowledge of Jamaica. Jamaica provides uniquely attractive environmental conditions and cost structures that provide an excellent commercial environment for future exports as the international cannabis markets develop.”
Retail medicinal Cannabis licenses in Jamaica include pharmacies and dispensary licensing, therapeutic licensing, and herb house licensing. Licensed herb houses may sell products for medical, scientific and therapeutic purposes and may have space for immediate consumption by consumers. R&D Pharma intends to open two herb houses in Jamaica to provide products and services to both domestic residents and international tourists.
RDP is a Canadian corporation carrying out its medicinal cannabis development activities in Jamaica through a wholly owned subsidiary, Lewisbail and Rich Pharma Ltd. That company is resident in Jamaica and incorporated under the Companies Act of Jamaica. RDP has outstanding 20,860,000 shares and is completing a private placement of common shares of up to $2,500,000 at twenty-five cents ($0.25) per share. It is anticipated that RDP will issue additional shares as part of transaction, or in a series of transactions, whereby it may acquire a Jamaican cultivation license and related licenses. Upon the completion of the investment, Belgravia will be entitled to appoint a representative to the Board of Directors of RDP. In Jamaica, legislation was passed in 2015 to decriminalize possession of small amounts of Cannabis for personal use.
Currently, possession of up to 2 ounces is a petty offense and cultivation of 5 or fewer plants is legal. Cannabis use by adult Rastafarians is legal for religious purposes. The passing of the 2015 legislation followed an increasing level of public support for the legalization and use of medical cannabis. Medical Cannabis is currently legal in Jamaica. The Cannabis Licensing Authority (the “CLA”), an agency of the Ministry of Industry, Commerce, Agriculture and Fisheries (“MICAF”), was created for the purpose of enabling a lawful and regulated industry in cannabis for medical, therapeutic, and scientific purposes.
Under the CLA rules, there are 5 types of cannabis licenses that may be granted: a license for cultivation, for transportation, for processing, for retail, and for research and development. RDP is acquiring operating cultivation and processing licenses and is also applying for additional licenses.
The CLA Board is comprised of representatives from several government divisions including the Ministry of Health, Justice, Finance, National Security and the Attorney General’s Chambers, as well as Academia, Civil Society Groups and other nongovernment community-based and faith-based organizations. The Chairman of the National Council on Drug Abuse also sits as a member of the Board. Imports and export regulations are currently being drafted by the CLA. The Ministry of Health governs import and export of cannabis and its products. All import and export regulations will be consistent with international Single Convention on Narcotic Drugs, 1961, as amended by 1972 Protocol amending the Single Convention. Both Jamaica and Canada are signatories to the Convention and also subscribe to the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, 1988.
About Belgravia Capital
Belgravia Capital International is focused on the provision of clearly value-added services to the international legal Cannabis industry. This includes the production of specialized organic fertilizers for Cannabis Sativa plants, and the organization and development of blockchain technology software for seed-to-sale tracking and quality attestation of intermediate and consumer products. The wholly owned subsidiary of Belgravia, ICP Organics, is a research and development company incorporating agronomic and health perspectives in the Cannabis space. Belgravia is also developing a royalty-streaming subsidiary.
Belgravia Capital intends to establish joint research and development partnerships with Licensed Producers operating under ACMPR regulations in Canada and in other jurisdictions where medicinal cannabis is fully legal. Belgravia Capital may invest in various private and public companies in diversified sectors on an opportunistic basis. For more information, please visit www.belgraviacapital.ca.
For More Information, Please Contact:
Mehdi Azodi, President & CEO