VANCOUVER, BC--(Marketwired - February 05, 2015) - Cavan Ventures Inc. (TSX VENTURE: CVN) ("Cavan" or the "Company") has entered preliminary discussions with a private corporation to supply and manage 12,000 acres or approximately 18,000,000 lbs. annually of conventional hemp grain production. The hemp grain production will be contracted with farmers located in Alberta, Saskatchewan and Manitoba.
As previously announced (see the Company's news release on March 25, 2014, and the clarifying news release on November 24, 2014), the Company intends to diversify its operations into the hemp and cannabinoid industry.
The Company and the private corporation have entered into a non-disclosure and standstill agreement with respect to these discussions. At this time, no further deal terms have been reached, nor has the Company entered into any letters of intent or definitive agreements with the private corporation. As the Company's discussions remain at a preliminary stage only, there can be no assurance or guarantee that the Company will enter into a binding agreement with respect to the acquisition of such agricultural lands. The Company will provide further updates as they are available.
As such, the Company further cautions investors that: (i) any transaction resulting in the Company's entry into the hemp/cannabinoid industry, or a "spin out" plan of arrangement of the Company's assets, will require various approvals, including that of the Company's board of directors, shareholders the TSX Venture Exchange, and, with respect to a plan of arrangement, court approval, and none of these approvals have been sought at present.
As previously announced (see the Company's news release on November 27, 2014), after completing its due diligence analysis regarding Agricultural lands in the Philippines, Cavan has concluded it is not in the best interest of the company and its shareholders.
The Canadian Hemp Market
Canadian farmers have been legally allowed to grow industrial hemp since 1998. The Canadian Hemp Trade Alliance says production in this country is forecast to almost double by 2015. This would equate to roughly 100,000 acres of grain production and about $100 million to the Canadian economy. The Canadian Hemp Trade Alliance says industrial hemp is one of the most profitable crops farmers can grow generating gross returns of about 700 dollars per acre. With China and Europe being the largest producers and consumers of industrial hemp this industry will only continue to expand especially into our southern counterparts.
Global Hemp Market
Hemp is one of the earliest domesticated plants known. It has been cultivated by many civilizations for over 12,000 years and currently over 30 countries are producing industrial hemp. Global hemp production increased from 250 million pounds in 1999 to more than 380 million pounds in 2011. In 2013 alone the U.S. retail hemp market was valued at 581 million with sales in US conventional retailers growing by 26.5%. There are currently over 50,000 different applications that hemp is used for on the market today including Industrial textiles, consumer textiles, paper, building materials, foods, industrial products and personal hygiene to name a few. Even various car manufacturers are integrating hemp into their vehicles including Audi, BMW, FORD, GM, Chrysler, Honda, Mercedes, Mitsubishi and Porsche and Volkswagen. For example, Mercedes C-Class contains up to 20kg in each car. With increased social acceptance of industrial hemp these numbers will only continue to grow.
For more information visit the website at www.cavanventuresinc.com.
ON BEHALF OF THE BOARD
Peter P. Swistak, President
Forward Looking Statements:
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's discussions regarding a potential acquisition of agricultural lands in Canada, the Company's plans to operate in the hemp/cannabinoid sphere, the hemp industry in the Canada, and the global hemp industry generally. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future and statements concerning the Company proceeding with any acquisitions or other transactions in the hemp/cannabinoid sphere. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. In particular, the Company cautions that any potential transactions cannot be predicted with certainty, and there can be no assurance at this time that all required or desirable approvals and consents to complete proposed transactions will be achieved, or that any proposed transactions will be completed at all. These forward-looking statements reflect management's current views and are based on certain expectations and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including factors beyond the Company's control. These forward-looking statements are made as of the date of this news release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.