Worlds Online Signs Definitive Agreement to Acquire Sigal Consulting, Enter Licensed Medical Marijuana Market
BOSTON, MA -- (Marketwired) -- 05/19/14 -- Worlds Online Inc. (OTCBB: WORX) ("WORX") has entered into a definitive agreement to have its subsidiary, MariMed Advisors, Inc., acquire Sigal Consulting LLC, a Massachusetts-based industry leader in the development of medical marijuana licenses and operations. It is anticipated that the closing will occur in three to four weeks. Upon closing, Sigal Consulting will operate through MariMed Advisors, Inc., as a majority-owned subsidiary of WORX. This acquisition will serve to diversify WORX's operational business into the growing licensed medical marijuana industry.
"Medical marijuana is a rapidly expanding market that is expected to double in the next five years," said Worlds Online CEO Thom Kidrin. "The combination of this large emerging market opportunity and Sigal Consulting team's years of successful experience and industry leadership will provide an opportunity for us to add significant value to our shareholders and a potentially great opportunity for growth."
An independent financial analysis firm (See Change Strategy) estimates there are 730,000 current medical marijuana patients, and 24.8 million eligible patients. ArcView Market Research projects the legal marijuana market will grow to $10.2 billion by 2018.
For many in the medical marijuana industry, knowledge, experience and access to capital have been major obstacles to growth. Federal regulations still restrict financial institutions from financing medical marijuana entities. "WORX's public company structure and experience in the capital markets provide access to the public markets that can provide expansion capital and a first-to-market advantage," noted Kidrin.
"Multiple states are changing their regulations to allow the sale of medical marijuana and there is a void of experience in how to obtain licenses, produce and deliver safe medical cannabis in compliance with the laws of the various states," stated Robert Fireman, founder and CEO of Sigal Consulting and a director of WORX. "This is creating a high demand for our experienced team to help potential entrants into the industry navigate the complex regulations, licensing, tracking, security, cultivation and operating practices as the product moves from seed to sale."
Sigal Consulting has extensive experience and knowledge of licensing, development, cultivation, operations, security, healthcare, and financing for the licensed medical marijuana industry. This is demonstrated in the state of the art Thomas C. Slater Compassion Center, a regulatory-compliant and fully operational cultivation and medical marijuana dispensary in Providence, Rhode Island. The Sigal Consulting team designed this facility as a replicable model of excellence for other medical marijuana centers to be developed as additional states approve the use of medical cannabis. Sigal Consulting currently serves clients in Rhode Island, Massachusetts and California. It is currently expanding and/or planning to expand its services to applicants and license holders in additional states, including New Mexico, Illinois, Nevada and Florida.
The Sigal Consulting transaction is subject to regulatory approvals and customary closing conditions. Until all the closing conditions are satisfied or waived, there can be no assurances that this transaction will be completed. If all closing conditions are satisfied, the transaction is expected to close within 30 days.
About Worlds Online Inc.:
Worlds Online is a 3D social network technology platform focusing on the development of virtual worlds, establishing strategic partnerships and pursuing synergistic next gen social network technology acquisitions related to online virtual world properties, technology platforms or development of mobile content, casual games, virtual currency/ micro transactions, online advertising and e-learning. For more information visit www.worldsonline.com.
About Sigal Consulting LLC:
Sigal Consulting LLC was formed to capitalize on the opportunities available in the emerging medical marijuana Industry across America. The developing array of legislative legalization of medical marijuana and the regulatory environment overseeing the growing and dispensing process is creating a potentially major opportunity in an emerging industry in the United States. Sigal Consulting believes it can become one of the leading providers, as its established legal & regulatory compliance capabilities and its proven operating systems become a model for industry growth.
Forward Looking Statements:
This release contains certain forward-looking statements and information relating to Worlds Online Inc. that is based on the beliefs of Worlds Online management, as well as assumptions made by and information currently available to the Company. Such statements reflect the current views of the Company with respect to future events including estimates and projections about its business based on certain assumptions of its management, including those described in this Release. These statements are not guarantees of future performance and involve risk and uncertainties that are difficult to predict, including, among other factors, changes in demand for the Company's services and products, changes in the economic environment and changes in technology. Additional risk factors are included in the Company's public filings with the SEC. Should one or more of these underlying assumptions prove incorrect, actual results may vary materially from those described herein as "hoped," "anticipated," "believed," "planned, "estimated," "preparing," "potential," "expected" or words of a similar nature. The Company does not intend to update these forward-looking statements. None of the content of any of the websites of any other party referred to herein (even if a link is provided for your convenience) is incorporated into this release and the Company assumes no responsibility for any of such content.
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Source: Worlds Online Inc.
Released May 19, 2014