Thelon Capital Ltd THVDF

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[richardtrader]

News > Press Releases THC to Explore Net Gram Royalties in Medical Marijuana V.THC | 4 minutes ago TORONTO, ONTARIO--(Marketwired - April 10, 2014) - Thelon Capital Ltd. (the "Company") (TSX VENTURE:THC)(FRANKFURT:TFHC) 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 prescribed 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