Cannabis Global Closes on Definitive Agreement with Los Angeles-based Brand Whisper Weed Entering the Estimated $10B Regulated Cannabis Market
23 Jul, 2020, 07:30 ET
LOS ANGELES, July 23, 2020 /PRNewswire/ -- Cannabis Global, Inc. (OTC: MCTC) ("Cannabis Global" or the "Company"), a cannabinoid and hemp extract science-forward company developing infusion and delivery technologies, announces the closing of a definitive agreement to enter the fast-growing California cannabis delivery market. Via the executed agreement, Whisper Weed, Inc. and Cannabis Global, have created a new California Corporation to be named CGI Whisper W, Inc., which will provide management services for the delivery entity. CGI Whisper W, Inc, will receive 51% of the profits from the new entity, which will be recognized as income by Cannabis Global, Inc.
"The delivery sector is the hottest area of the California cannabis business and we are very pleased to have a seat at the table," commented Arman Tabatabaei. "We not only will be able to grow our revenue base relative to direct delivery, but we also see Whisper Weed as a perfect platform to launch our infusion technologies in the regulated marketplace. With the deal closing, we are already in the process of adding other delivery platforms and other businesses to our overall portfolio."
Cannabis Global views this agreement as an important step toward the verticalization of its IP-driven focus. Many of the technologies developed for CBD and non-THC marketplaces can be directly applied to the regulated California cannabis marketplace, including the Company's newly developed tetrahydrocannabivarin (THC-V) and Cannabinol( CBN) delivery technologies.
Whisper Weed Inc operates its website at www.WhisperWeedDelivery.com. Consumers are able to browse products in the flower, pre-roll, cartridge, edibles, and concentrate categories. Consumers simply sign up on the website and order products with a delivery typically within a few hours. The operation headquartered in Downtown Los Angeles delivers to the Los Angeles metro area. Cannabis Global believes the trend toward home delivery for cannabis is robust with further growth expected over the coming year.
As compensation for the Agreement, the owners of Whisper Weed, Inc. will receive $150,000 restricted common shares in the Company and shares of a newly created non-voting, participating preferred stock in Cannabis Global. With the signing of the definitive agreement, Cannabis Global expects to begin recognizing revenues from Whisper Weed immediately.
Mr. Tabatabaei continued, "We have recently shifted priorities from full product development to marketing the many innovative products we have put forth into the marketplace. This new deal with Whisper Weed is simply only one component of our overall growth programs - We have so much more planned for the Company."
About Cannabis Global, Inc.
Cannabis Global, Inc. (OTC:MCTC) is a Nevada registered, fully reporting and audited publicly-traded company. With the hemp and cannabis industries moving very quickly and with a growing number of market entrants, Cannabis Global plans to concentrate its efforts on the middle portions of the hemp and cannabis value chain. The Company plans to actively pursue R&D programs and productization for exotic cannabinoid isolation, bioenhancement of cannabinoids and polymeric solid nanoparticles and nanofibers for addition into consumer products and for dermal application. The Company was reorganized during June of 2019 and announced its intent to enter the fast-growing cannabis sector. The Company is headed and managed by a group of highly experienced cannabis industry pioneers and entrepreneurs.
This news release contains "forward-looking statements" which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as "anticipate", "seek", intend", "believe", "estimate", "expect", "project", "plan", or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-k, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.
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SOURCE Cannabis Global, Inc.
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