TORONTO, Oct. 17, 2017 (GLOBE NEWSWIRE) -- IC Potash Corp. (TSX:ICP)(OTCQB:ICPTF) (“IC Potash” or the “Company”) is pleased to announce that the redemption of the Company’s shares in Intercontinental Potash Corp. (USA) (“ICPUSA”) has been completed. The redemption is described in the Management Information Circular for the Special Shareholder Meeting of the Company held on October 12, 2017 that was filed with the Canadian Securities Administrators. The Circular can be found at http://www.sedar.com/
The Company received an initial payment of USD $1.4 million on redemption of ICPUSA shares. The Company will receive an additional payment of USD $1.4 million on or before January 8, 2018. Additional proceeds of disposition on the redemption of the shares in ICPUSA include rights to seventy-five per-cent of water revenues that ICPUSA may earn by selling water to oil and gas companies which are fracking tight oil formations in the Permian Basin. The Ochoa Potash Project, previously held by the Company, is located in the Permian Basin and ICPUSA retained the water rights. Water is in high demand by the oil and gas companies and can be sold at high prices by ICPUSA. The revenues that the Company may earn will be up USD $12.2 million.
The Company is closely investigating various sectors and companies for potential JV or investment partnerships for deploying the funds.
Mehdi Azodi, President and CEO of IC Potash stated, ”We are pleased to see the completion of the redemption transaction. We anticipate a substantial return on the water rights since the water is in high demand by the oil and gas companies located in Lea County and the other counties of southeast New Mexico and West Texas.”
About IC Potash
IC Potash is establishing a diversified portfolio of investments and interests with initial focus on organic fertilizers and resource assets. ICP Organics, a wholly owned subsidiary of IC Potash Corp., is focused on research, development and investment in the fertilizer and medical cannabis sectors, with emphasis on organic fertilizers and pesticide free products. Organic products provide value-enhancing opportunities to medical cannabis and other agricultural growers allowing the producers to sell products at premium prices.
IC Potash intends to establish joint research and development partnerships with Canadian Licensed Producers operating under ACMPR regulations in Canada. The Company is also establishing commercial relationships with medical and recreational cannabis producers in the United States. IC Potash has made an equity investment in cannabis operations in South America. As IC Potash grows, it plans to build a diversified portfolio in commercial-scale cannabis cultivators and related downstream cannabis industry providers. The Company may invest in various private and public companies in diversified sectors on an opportunistic basis.
For more information, please visit www.icpotash.com.
Forward-Looking Statements
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties and other factors which may cause the actual results, performance or achievements of IC Potash to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements include statements that use forward-looking terminology such as “may”, “will”, “expect”, “anticipate”, “believe”, “continue”, “potential” or the negative thereof or other variations thereof or comparable terminology. Such forward-looking statements include, without limitation, statements regarding planned investment activities & related returns, trends in the markets for fertilizers and medicinal or recreational use of cannabis, the timing or assurance of the legalization of recreational cannabis, the timing for completion of research and development activities, the potential value of royalties from water and other resources, and other statements that are not historical facts. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of IC Potash, including, but not limited to, changes in market trends, the completion, results and timing of research undertaken by IC Potash, risks associated with resource assets, the impact of general economic conditions, commodity prices, industry conditions, dependence upon regulatory, environmental, and governmental approvals, the uncertainty of obtaining additional financing, and risks associated with cannabis use for medicinal or recreational purposes. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
For More Information, Please Contact:
Mehdi Azodi, IC Potash, President & CEO, 416 779 3268, mazodi@icpotash.org