Easton Pharmaceuticals Inc. Suspends All Potentially Dilutive Financing as a Direct Result of Negotiations With a Major California Based Medical Marijuana Grow-Op
TORONTO, ON–(Marketwired – Dec 22, 2014) – Easton Pharmaceuticals Inc. (OTC PINK: EAPH) announces it has suspended all types of financings considered more dilutionary compared to other financing options currently available.
This decision was made primarily as a result of negotiations Easton is having with a large medical marijuana grower who own multiple existing licenses and medical marijuana grow operations located in the state of California. Easton Management has requested that more transparency be provided to shareholders and investors than was previously the case with other previously announced medical marijuana initiatives. The California company has made certain demands of Easton including the recently announced audit of its financial statements, re-evaluation of its contractors, more detailed information regarding its Canadian medical marijuana initiative within the country of Canada, and to provide details and access to its joint venture relationship with AMFIL Technologies and their groZone system. The grower has implied availability of financing for the transactions at a premium to current market rates and that it be more in line with the 200 day moving average for the stock. The California Grower has also disclosed a high level of interest in becoming an equity stakeholder in Easton.
Easton anticipates making a formal announcement once some remaining minor details are sorted out. An exact timeline is subject to negotiations with another company.
The company has in the past year been conservative with how much cash it has expended into projects and has retained the majority of the $1,000,000 in financing obtained in 2014. The only circumstance where immediate additional cash would be required would be to execute on the Canadian medical marijuana grow operation. Easton has received a previous financing commitment exclusively towards this venture from a private accredited investor.
Market conditions and sentiment in the Medical Marijuana Sector are currently at a more depressed state compared to earlier in the spring of 2014. Easton’s current stock price is reflective of this market sentiment. Easton management has the responsibility to act in the best interests of the company and shareholders. Current market conditions do not necessitate a need to accept dilutive forms of financing at this point in time.
About Easton Pharmaceuticals
Easton Pharmaceuticals is a specialty pharmaceutical company involved in various pharmaceutical sectors and others industries including medical marijuana. The Company previously owned an FDA approved wound healing drug and currently owns topically-delivered drugs and therapeutic / cosmetic healthcare products focused on cancer and other health issues geared towards female sexual dysfunction, wound healing, pain, motion sickness and other conditions that are all in various stages of development. The company has ventured into the potentially lucrative medical marijuana industry through an investment into AMFIL Technologies and their groZONE anti-bacterial system and the exclusive option to purchase up to 49% in a medical marijuana grow-op business / facility which has received a letter to build from Health Canada for the country of Canada. The company’s gel formulation is thought to be an innovative and unique transdermal delivery system that can in the future be adaptable in the delivery of Cannabidiol extracts.
This news release may contain forward-looking statements or expressions within the meaning of the Private Securities Litigation Reform Act of 1995 (The “Act”). In particular, when certain words or phrases such as “hope,” “positive,” “anticipate,” “pleased,” “plan,” “confident that,” “believe,” “expect,” “possible,” or “intent to,” and similar conditional expressions are expressed, they are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Any investment made into Easton Pharmaceuticals would be classified as speculative and may contain risks. Such risks and uncertainties include, but are not limited to, market conditions, general acceptance of the company’s products and technologies, competitive factors, the ability to successfully complete additional or adequate financing, government approvals or changes to proposed laws and other risks and uncertainties further stated in the company’s financial reports and filings.
Tel: +1(416) 619-0291
Tel: +1(347) 284-0192
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | firstname.lastname@example.org