[Asia Economy Reporter Hyunseok Yoo] Midas AI announced on the 26th that it has signed a memorandum of understanding (MOU) with Mplant, Inc. (MPLANT) and Melrose Facility Management (MFM) in the United States to acquire equity stakes.
MFM is a company located in California, USA, equipped with marijuana cultivation and extraction facilities, owned by Mplant. According to this business agreement, Midas AI will acquire a 51% stake in MFM from Mplant. Mplant plans to sign a contract granting rights equivalent to 51% of the sales, distribution, or production of products manufactured by MFM.
The two companies plan to finalize the main contract within the year by discussing specific details such as the equity purchase price and product purchase price.
On the 5th, during the process of disposing of its assets, Midas AI opened the possibility of entering the marijuana business by receiving 16,800 shares (16.8%) of Blue Synergy Corp, a U.S. company, as collateral from the transferee. Blue Synergy’s subsidiary, Atlantic Goldwin Corporation, operates marijuana cultivation business within the United States.
Once the final agreement of this MOU, the main contract, is completed, Midas AI will effectively engage in the marijuana business.
A company official stated, “In the state-level referendums held alongside the U.S. presidential election, marijuana legalization was decided in four states including Arizona, Montana, and New Jersey, expanding the market from the existing 11 states to 15 states,” adding, “Since U.S. President-elect Joe Biden pledged marijuana legalization as a campaign promise during his election activities, the market within the United States is expected to expand further.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
