VANCOUVER, Jan. 31, 2019 /PRNewswire/ - CANNAMERICA BRANDS CORP. ("CANA" or the "Company") (CSE: CANA) (OTCQB: CNNXF) announced that it has been requested by the OTC Markets Group, Inc. ("OTC Markets") to comment on recent trading and promotional activity concerning its common shares.
The Company became aware of certain promotional activities concerning the Company and its common shares on January 28, 2019, when OTC Markets informed the Company that it had become aware of promotional literature encouraging investors to purchase the Company's common shares. The Company has been informed that this promotional activity coincided with higher than average trading volume in the Company's shares.
The Company has engaged third party providers, Wallace Hill Partners Ltd. ("Wallace Hill") and Darwin Productions Inc. ("Darwin"), to provide public relations, marketing or other related services. The Company has paid Wallace Hill to provide digital marketing services for a period of three years commencing January 1, 2019 and paid Darwin for a direct mail marketing campaign and ongoing marketing and brand awareness as disclosed in the Company's press release dated January 4, 2019. The current Wallace Hill digital marketing campaign began on January 28, 2019 and was suspended on January 29, 2019.
While the Company engaged Wallace Hill to assist with public relations and marketing activities, the Company, its officers and directors did not review drafts or have editorial control of the material related to the Company's business and prospects and the Company's industry prior to publication or distribution. Furthermore, the Company did not have direct control over the creation or distribution of the materials. The Company has determined that certain statements included in these newsletters related to the Company and its business might be misleading and/or incomplete and readers should not place undue reliance on these newsletters. Specifically, the Company does not condone the use of sensational language to describe the Company's business prospects or the growth potential of the Company and its industry. Further, investors should disregard comparisons made between the Company and larger, more established companies and the Company does not condone any assumption that the Company's brand would resonate with Warren Buffett. The Company encourages investors to review the business and prospects of the Company on its own merits. The Company does not condone any statements made regarding the urgency of investing in the Company's common shares or any other similar statements. Finally, the Company notes that investing in the Company's securities involves certain risks and uncertainties which investors should review prior to making any investment decision. The Company encourages all investors to undertake proper due diligence and carefully consider all investment decisions. The Company directs potential investors to rely solely on its filings and disclosures made with Canadian securities regulators, available at www.sedar.com, the United States Securities and Exchange Commission, available at www.sec.gov and as posted on the filings and disclosure page for CNNXF on the OTC Markets website at www.otcmarkets.com.
The Company does not know the direct effect of the paid promotional activities, if any, on the trading activity of the Company's shares. Activity in the Company's shares did rise on January 28, 2019, which coincides with the start of the digital marketing campaign. The Company had previously issued press releases and reports regarding the Company's entry into the CBD market in the United States over the preceding several weeks, which the Company believes may have also influenced trading in the shares. The Company does not know the relative influence of these announcements on the trading activity of the Company's shares compared to the paid promotional campaign.
After direct and diligent inquiry the Company can state that the Company, its officers, directors and, to the Company's knowledge, its controlling shareholders (i.e., shareholders owning 10% or more of the Company's securities) and third-party service providers have not, directly or indirectly, authorized or been involved in any way (including payment to a third-party) with the creation or distribution of promotional materials regarding the Company or its securities outside of the Wallace Hill digital marketing campaign and the Company's direct mail campaign that has not yet commenced.
As part of the OTC Markets' inquiry, the Company has been asked to disclose all transactions by any officer, director, controlling shareholder (defined as owning 10% or more of the outstanding stock), and any third- party service providers within the last 90 days. No such transactions have occurred within the last 90 days.
As of January 31, 2018, Wallace Hill and Darwin are the only entities currently engaged by the Company to provide investor relations services, public relations services, marketing, or other related third-party services to the Company, including the promotion of the Company or its securities.
Since becoming a public company on October 15, 2018, the Company has not issued shares or convertible instruments allowing conversion to equity securities at prices constituting a discount to the current market rate at the time of the issuance.
For more information, please visit www.cannamericabrands.com.
On Behalf of the Board,
CEO and Director
About CannAmerica Brands Corp.
CannAmerica Brands 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.
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.
SOURCE CannAmerica Brands Corp.