VANCOUVER, July 3, 2019 /PRNewswire/ - CANNAMERICA BRANDS CORP. ("CannAmerica" or the "Company") (CSE: CANA) (OTCQB: CNNXF) is pleased to announce that on June 28, 2019, it entered into a long-term licensing agreement (the "Agreement") and brand partnership with THC Total Herbal Care Corporation ("THC" or the "Licensee") under which THC will have an exclusive license to manufacture and distribute CannAmerica branded cannabis infused gummy products, disposable vape pens, distillate droppers and shatter and wax concentrate product (the "Licensed Products") in Oklahoma.
Terms of the Agreement include:
- the initial term will be for a period of 5 years;
- the Licensee will purchase all un-infused consumable ingredients, packaging supplies, and branded hardware exclusively from the Company;
- THC will follow formulations and processes provided by the Company;
- during the first 180 days of the initial term, THC will employ two full-time salespeople in Oklahoma to promote, market, advertise, and sell the Licensed Products; and
- the Agreement may be terminated in certain circumstances, including:
- applicable state or location regulatory authorities reject or cancel the Agreement, determine that the Agreement is illegal or impermissible, or determine that the Agreement would require the Company to be registered as an owner of the Licensee;
- applicable federal authorities require the parties to cease performing under the Agreement or threaten enforcement against the parties in relation to the Agreement or to either party's violation of federal law regarding cannabis;
- upon 120 days' written notice by either party to the other party; or
- by either party within five days' written notice to the other if the other party files a petition of bankruptcy or is adjudicated bankrupt.
"We are pleased to announce that we expect CannAmerica branded products to be available in the Oklahoma medical cannabis market in the coming months," said Dan Anglin, CEO and Co-Founder of CannAmerica. "By signing this Agreement, CannAmerica will be poised to bring its menu of cannabis infused edible products, concentrates, and other medicinal cannabis product lines to the great state of Oklahoma. We have long been ready to bring our product lines to patients in the southern United States and are proud to be working with THC and their extraordinary management team. We anticipate that our expertise and quality products, combined with THC management, will increase the quality and variety of products available to the Oklahoma medical cannabis patient community."
The Agreement aligns with the Company's established goals to expand into additional markets in the United States during 2019.
"We are very proud to be a part of the CannAmerica team so we may provide their edibles and other highly-rated products to our patients in Oklahoma," said Loretta Lever, CEO and President of THC.
Additionally, the Company is pleased to announce that it has entered into an extension agreement in respect of the previously announced binding letter of intent ("LOI") dated March 8, 2019 to create a joint venture ("JV") with Sericea Labs S.A. de C.V. and CBDistribution Company Ltd. with the intention of building a facility in Mexico for importing and warehousing licensed CBD products as well as CBD oils and tinctures destined for refining. The term of the LOI has been extended to January 1, 2020.
"The Company has learned that the Government of Mexico is making strides in the effort to legalize hemp-based products for manufacturing and distribution across Mexico," said Dan Anglin, CEO and Co-Founder of CannAmerica. "We understand that the legislative process to create a new industry sometimes takes more time than expected, and have decided to extend the LOI through to the end of the year to allow more time for legalization to pass through the legislative bodies. We look forward to executing the agreement upon successful passage of legislation to legalize hemp and cannabinoid products in Mexico."
For more information, please visit www.cannamericabrands.com.
On Behalf of the Board,
CEO and Director
About CannAmerica Brands Corp.
CannAmerica is a U.S. marine veteran founded and operated portfolio of cannabis brands with licensing agreements in the states of Colorado, Nevada and Maryland. The Company aims to maximize the value of its brands by employing strong brand management teams, marketing and licensing the brands through various distribution channels, including dispensaries, wholesalers and distributors, in the United States and internationally. The Company's core strategy is to enhance and monetize the global reach of its existing brands, and to pursue additional strategic acquisitions to grow the scope and diversity of its brand portfolio. For more information, please visit www.cannamericabrands.com.
About THC Total Herbal Care Corp.
THC Total Herbal Care (THC) is licensed to cultivate, process, and dispense cannabis in Oklahoma. THC provides "cannabis goodness" products to help patients improve their quality of life. THC aims to deliver only the finest premium cannabis solutions and medicine. THC believes that wisdom gained from all-natural solutions should not be forgotten or ignored, and aims to provide such proven solutions with industry-leading quality and trust. For more information, please visit www.totalherbalcarethc.com
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements: This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, including statements regarding future estimates, plans, objectives, timing, assumptions or expectations of future performance, including that CannAmerica branded products are expected to be available in Oklahoma in the coming months, that such products are anticipated to increase the quality and variety of products available to the Oklahoma medical cannabis patient community, that THC will manufacture and distribute CannAmerica branded products in Oklahoma, the anticipated legalization of hemp and cannabinoid products in Mexico, the intention of the Company and the other JV parties to build a facility in Mexico for importing and warehousing CBD products, and the intention of the Company to enter into a definitive agreement with the JV parties by the anticipated deadline, if at all, are forward-looking statements and contain forward-looking information. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release, including that CannAmerica branded products will be available in Oklahoma in the coming months, that such products will increase the quality and variety of products available to the Oklahoma medical cannabis patient community, the ability of THC to manufacture and distribute CannAmerica branded products in Oklahoma, that hemp and cannabinoid products will be legalized in Mexico, the ability of the Company and the other JV parties to build a facility in Mexico for importing and warehousing CBD products, and the ability of the Company and the JV parties to enter into a definitive agreement by the anticipated deadline, if at all. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Important factors that may cause actual results to vary, include, without limitation, that CannAmerica branded products will not be available in Oklahoma in the coming months, that such products will not increase the quality and variety of products available to the Oklahoma medical cannabis patient community, the inability of THC to manufacture and distribute CannAmerica branded products in Oklahoma, that hemp and cannabinoid products will not be legalized in Mexico, the inability of the Company and the other JV parties to build a facility in Mexico for importing and warehousing CBD products, and the inability of the Company and the JV parties to enter into a definitive agreement by the anticipated deadline, if at all. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws.
SOURCE CannAmerica Brands Corp.