IJJ Corporation (IJJP) Announces the Addition of Cannaworx, Inc. of California to Its Medical Marijuana Acquired Joint Venture – Contractual Rights of 50% Annual – Income Sharing Program, for Cannaworx, Inc.

SILVER SPRING, MD - February 12, 2015 - InvestorsHub NewsWire - IJJ Corporation (IJJP.PK) announces an agreement with Cannaworx Inc., of California, to provide funding for the expansion of Cannaworx medical marijuana operations to grow and provide various strains of medicinal marijuana (MMJ) to licensed cooperatives, collectives and dispensaries under California State MMJ guidelines. The agreement entitles IJJ Corporation, and other entities, collectively, up to 50% of the net income from the growing, processing and distribution of MMJ in the state of California. As a result of this transaction, IJJ Corporation’s share of MMJ income will increase from the previously announced $2,100,313, annually from other cannabis farming operations, in exchange for stock to be delivered over time. Among the other participants are Gear International (“GEAR”) and Texas Wyoming Drilling (“TWDL”).

Cannaworx plans include the building of multiple greenhouses, each configured with requisite adaptations for an efficient operation that includes the growing, processing, and distribution of medicinal marijuana products. Additionally, Cannaworx will extract and produce CBD extracts, edibles, and elixirs. Branded and private label product lines will be created based on the needs of the marketplace.

“The addition of Cannaworx to our Medical Marijuana expansion project is another step forward in our program to provide the funding to non-traditional businesses, enabling these operations to be more efficient and profitable. “, states IJJ Corporation’s Chairman and President, Clifford Pope. Mr. Pope continues “These improvements have a direct impact to their bottom lines which in turn yields greater revenue streams to IJJ Corporation. We will continue to pursue opportunities that add revenue streams to IJJ Corporation and value to our shareholders.”

Forward-looking statement

This press release contains statements which may constitute “forward-looking statements” within the meaning of the Securities Act of 1933 and the securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of the Company and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Investors are cautioned that due to the Company’s acquisition of the right to receive income from marijuana farming operations, an investment in this Company is extraordinarily risky, involving a multiplicity of extreme risks, that in some respects exceed that of any legal investment in the history of investing, particularly given the conflict of laws and the potential consequences of that conflict, including very substantial legal risk of federal prosecution, penalty and imprisonment, as marijuana is still classified federally as a Schedule 1 narcotic.

Despite recent federal legislation, it remains felony, in violation of the Controlled Substances Act, to distribute, cultivate or use marijuana; and the very comprehensive federal and international anti-money laundering statutes, including: Bank Secrecy Act (1970), Money Laundering Control Act (1986), Anti-Drug Abuse Act of 1988, Annunzio-Wylie Anti-Money Laundering Act (1992), Money Laundering Suppression Act (1994), Money Laundering and Financial Crimes Strategy Act (1998), Uniting and Strengthening America by Providing Appropriate Tools to Restrict, Intercept and Obstruct Terrorism Act of 2001 (USA Patriot Act [Title III of the USA Patriot Act is referred to as the International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001]), Intelligence Reform & Terrorism Prevention Act of 2004. At least a portion of these provisions expressly include restrictions upon the use of the banking system to transfer the proceeds of such investments, which could be viewed as money laundering.

Many take significant comfort in the recent federal spending bill, defunding the government’s enforcement of federal laws criminalizing marijuana, not permitting any of the funds available under the act for use by the Department of Justice to thwart the efforts of states to authorize the medical use of marijuana. However, such actions are still prohibited by federal law, irrespective of the laws of the jurisdiction in which the marijuana is produced. Indeed, despite its current position, the Department of Justice could choose to prosecute the Company and its officers, and all those who may be perceived to have aided and abetted in this process. Accordingly, there remains a substantial legal risk of federal prosecution, penalty, forfeiture and imprisonment, and for a multitude of potential violations. Additionally, the cost of assuring compliance and the costs associated with otherwise normal business transactions are substantially enhanced by these circumstances. Risks also include a very substantial strategic risk associated with lack of ownership and consequent lack of control over the subject property and operations, which lack of ownership and control is mandated by the laws and regulations of the jurisdiction in which the marijuana is grown.

The risks also include a very substantial economic risk, including as a consequence of the foregoing recitation of other risks. It is just such risks that that have prevented the growers from securing any financing from other sources, over a substantial period of time. Finally, given the extraordinary return on the investment, there is even a risk of the financial arrangement being construed as a “loan”, which may, at least arguably, not be exempt from applicable usury laws, even though this financial arrangement is not a loan, let alone a conventional loan, but is in the nature of risk capital financing/provision of services and real estate and that the contemplated compensation appears to be, and has been represented by the pay oars to be commensurate with the multiplicity and magnitude of the risks, including those as above identified”.

 

 

 

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