News Release Out Maple Leaf Green World Inc. Signs A Letter Of Intent To Supply Hemp Seeds To A South East Asian CBD Producer
2019-09-17 04:01:02 PM ET (GlobeNewswire)
Maple Leaf Green World Inc. ("Maple Leaf" or the "Company") (NEO: MGW, OTCQX: MGWFF) announces it has entered into a Letter of Intent (LOI) , with a Singapore based Lin International Trading PTE Ltd ("Lin International"), to supply feminized hemp seed for their expanding South East Asian hemp projects.
Lin International is in the process of obtaining hemp cultivation licenses on 500 hectare (1235 acres) of land in Lao People's Democratic Republic and pursuing more opportunities in other South East Asia countries. They are focused on cultivating hemp for the production of medical CBD extracts.
Lin International expects to purchase a minimum of 1,500 Kilograms of feminized hemp seed, from Maple Leaf Green World, at a proposed price of $10,000(CAD) per Kilogram, in the first year. Lin International also anticipates to purchase up to 10,000 Kilograms, annually, of feminized hemp seed, as their business develops in other parts of South East Asia.
Once Maple Leaf Green World's Hemp Seed cultivation is operational, Lin International and Maple Leaf Green World will sign a binding supply agreement to replace this LOI.
This Letter of Intent is a starting point for further negotiations and also operates as a framework under which further collaboration to exploit the hemp and CBD oil market in South East Asia between Maple Leaf Green World and Lin International can be developed. The whole Asian market is a large and untapped hemp and CBD market while the regulatory environment changes is being made in favor of developing such industry.