STAYNER, ONTARIO--(Marketwired - Feb. 20, 2015) - The Peace Naturals Project Inc. ("Peace Naturals") is pleased to announce that it has signed a definitive agreement to acquire 8437726 Canada Inc. operating as MedCannAccess ("MedCannAccess").

Peace Naturals was the first non-incumbent company licensed and renewed under the Marihuana for Medical Purposes Regulations ("MMPR") and is currently one of the largest licensed producers of medical cannabis products in Canada.

The proposed acquisition further strengthens Peace Naturals' position as a market leader in the emerging medical cannabis industry. MedCannAccess offerings complement the Peace Naturals client care and product distribution strategy, extend its physician relationships, bring additional seasoned industry professionals to its management team, and enhance the research, development and innovation capabilities of the combined business in production optimization, as well as in the design of new delivery systems.

"Peace Naturals is expanding our production abilities and this acquisition will greatly expand our distribution network and provide access to new delivery mechanisms and treatments to our clients," said Mark Gobuty, CEO of Peace Naturals.

"MedCannAccess has a waitlist of over 1500 potential clients who are rostered to over 350 respective physicians and 20 new varieties of medical cannabis already held in trust at Peace Naturals," said Blaine Dowdle, CEO of MedCannAccess.

Additionally, Peace Naturals will now have a 33% equity stake in CannScience Innovations Inc., an R&D biopharmaceutical company established in Toronto, Canada to conduct research and product development for extracts and formulations related to medical cannabis and its derivatives. This equity stake positions Peace Naturals as a leader in research and development of non-smoked forms of cannabis. Peace Naturals also obtains a 30% equity stake in CannSoft Inc., a company providing customized ERP services to the medical cannabis industry.

"Through this acquisition Peace Naturals continues its position as a leader in medical cannabis production, building a strong platform for future growth, comprising strong business fundamentals, a differentiated client acquisition strategy, a national branding strategy, scalable production, and best in class R&D," said Mr. Gobuty. "This is the first acquisition in Peace Naturals' strategy of market consolidation and we look forward to continuing success in the years to come."

The transaction is scheduled for completion during Q2, 2015 and is subject to receipt of all required regulatory consents and approvals. Euro Pacific Canada Inc. advised Peace Naturals on the transaction.

About The Peace Naturals Project Inc.

Based in Stayner, Ontario, the Peace Naturals Project Inc. is a Tier 1 licensed producer of medical cannabis under Health Canada's federal Marihuana for Medical Purposes Regulations with strong business fundamentals and a focus on its multi-dimensional approach to market consolidation.

Contact Information:

The Peace Naturals Project Inc.
Mark Gobuty
Chief Executive Officer

Rade Kovacevic
VP Business Development