Umbral Evaluating Medical Marijuana Industry
April 2, 2014 (Source: Accesswire) — UMBRAL ENERGY CORP. (TSX-V: UMB) (the “Company” or “Umbral”) herein provides a corporate update and advise to both its shareholders and the market as to the Company’s current state of affairs. The Company is currently listed as a junior resource issuer having a mineral exploration projects. The Company is considering other activities to increase shareholder value, including non-resource projects. The Company is conducting diligence in regards to the commercial cultivation of marijuana under the newly established Health Canada regulations pertaining to the cultivation of marijuana for medical purposes.
It is the Company’s intention to pursue, through identification and strategic alliances for opportunities to increase shareholder value in the medical marijuana field which management of the Company believes will present an opportunity for significant growth and cash flow. As a result, the company is actively researching the business opportunities in the medical marijuana industry. It is the Company’s belief that Health Canada’s new regulations pertaining to the medical marijuana industry will benefit companies that can obtain a license under the new marijuana for medical purposes regulations.
The Company has invested significant time in researching the industry and believes that there remain opportunities for entry into the sector. A steadily increasing percentage of the medical community believes that medical marijuana, and more specifically cannabinoids, has the potential to help patients who are suffering from a variety of ailments and illnesses. In addition, industrial hemp is an emerging industry in Canada, and hemp is one of the strongest natural fibres known to man. Hemp has a wide range of applications including medicine. Both sectors show the potential for exponential growth.
In the United States, medical marijuana is legal in 20 states, including Washington. Furthermore, Colorado and Washington have legalized recreational use, with additional states contemplating legalization.
Recent analysis on the American marijuana marketplace by ArcView Angel Investors forecast a 64-percent surge in the legal U.S. cannabis market to $2.34-billion in 2014. It also estimates that the five-year national market could grow to $10.2-billion amid rising demand and potentially new state markets.
While the Company has conducted diligence, had discussions and negotiations with respect to undertaking a transaction in the sector, no agreement in principle or otherwise has been entered into with any party and there is no assurance that the Company will acquire any agriculture-related assets, directly or indirectly. Until such time as a transaction is completed, management continues to evaluate all potential transactions across all sectors with a view to creating value for shareholders.
The Company has a mineral exploration project in Quebec, Canada as well as an oil and gas project in Alberta, Canada. The Company’s most recent activity has been the Little Bow oil project in Alberta, Canada, where, during 2013, the Company participated in drilling an exploration oil well with Aroway Energy Inc. The Company is currently evaluating the potential commercial viability of the well and will provide an update when a decision is made.
ON BEHALF OF THE BOARD OF DIRECTORS OF UMBRAL ENERGY CORP.
President and CEO
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.
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