4.
Untimely processing of our license applications by Health Canada may cause our business to fail.
The success of our business plan relies in part on the timely processing by Health Canada of our application to become licensed producers under MMPR. According to Health Canada, as at August, 25, 2014, it had received 1,009 formal production licenses applications under the MMPR since its call for applications in 2013. Of those, 462 applications have been returned as incomplete, 201 have been rejected and 32 withdrawn. To date, 14 productions licenses have been granted to 13 different producers with only two licenses granted during the summer of 2014. Due to the slow progress, uncertain timing, and apparent backlog of production license application reviews by Health Canada, we are unable to determine with any accuracy when our application will be processed. Undue delays on the part of Health Canada in processing our application may result in our failure to generate any revenues in the foreseeable future which could cause our business to fail.
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http://www.sec.gov/Archives/edgar/data/1653821/000107878215001519/form10091815_ex99z1.htm