VANCOUVER, June 24, 2019 /PRNewswire/ - CANNAMERICA BRANDS CORP. ("CANA" or the "Company") (CSE: CANA) (OTCQB: CNNXF) is pleased to announce that on June 20, 2019 it had entered into a non-binding letter of intent ("LOI") with Canna Provisions Inc. ("the Licensee") under which the Licensee will have an exclusive license to manufacture and distribute CannAmerica branded cannabis infused gummy products and disposable vape pens, and Live Labs branded cannabis concentrate products, including droppers, shatter and wax concentrate products, and gelatin based capsules (the "Licensed Products") in the Commonwealth of Massachusetts. Live Labs is a brand created by the founders of CannAmerica, wholly owned by the Company, and is being introduced in the Northeastern United States recreational cannabis marketplace.
Terms of the LOI are as follows:
- The initial term of the license agreement will be for a period of 3 years.
- Net price payable from Canna Provisions Inc. to the Company will be determined by a per package/unit fee relating to CannAmerica products that the Licensee decides to produce.
- Canna Provisions Inc. agrees to pay the Company a license fee to manufacture and distribute the Company's products;
- The Licensee will purchase all un-infused consumable ingredients, packaging supplies, and branded hardware exclusively from the Company;
- Canna Provisions Inc. will follow formulations and processes provided by the Company;
- During the first 180 days of the Initial Term, the Licensee is expected to employ one full-time sales representative to exclusively promote, market, advertise and sell Licensed Products;
Subject to Board approval from the Company and completion of satisfactory due diligence, the parties intend to enter into a Definitive Agreement on or before July 15, 2019.
"The Company is looking forward to the prospects of an agreement with Canna Provisions Inc. with the intent of introducing our growing brands into Massachusetts and the Northeastern market of the United States," said Dan Anglin, CEO and Co-Founder of CannAmerica. "The Massachusetts adult use marketplace is thriving and a perfect fit for CannAmerica Brands concept and products. Expanding into this marketplace was a fundamental goal for the brand and is an important milestone in reaching the Company's growth goals for 2019."
"My colleagues and I at Canna Provisions have known the CannAmerica Brands team for many years, and we are excited to work with these experienced cannabis industry professionals again—this time in the great state of Massachusetts," said Meg Sanders, CEO of Canna Provisions Inc., which will open its first of three Massachusetts dispensaries soon in Lee, Mass. "We are confident that CannAmerica's infused gummies and vape pens and Live Labs' concentrates and capsules will find receptive audiences among our customers, who expect and deserve thoughtfully formulated, efficacious cannabis products that deliver consistent and repeatable effects."
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.
About Canna Provisions Inc.
Canna Provisions is the next generation of cannabis dispensary focusing on a unique and thoughtful customer experience. We are here to guide you and towards the right provisions to fit your lifestyle and provide knowledgeable support every step of the way. Founded by established industry pioneers with extensive cultivation, regulation and consumer sales experience, Canna Provisions stores provide a broad range of top-grade craft cannabis products that are locally sourced and thoughtfully produced. Life is a journey. No matter the path, trust Canna Provisions to better your journey. To learn more, visit CannaProvisionsGroup.com. Join us on Facebook, Instagram and Twitter.
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 or forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. 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 the Company is anticipated to enter into a definitive agreement with CANNA PROVISIONS INC. by July 15, 2019, the terms of the LOI are expected to be as anticipated by management and CANNA PROVISIONS INC. is expected to manufacture and distribute CannAmerica branded CBD infused products in Massachusetts 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 the Company will enter into a definitive agreement with the CANNA PROVISIONS INC. by July 15, 2019, the terms of the LOI will be as anticipated by management and the CANNA PROVISIONS INC. will manufacture and distribute CannAmerica branded CBD infused products in Massachusetts. 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 the Company will not enter into a definitive agreement with CANNA PROVISIONS INC. by July 15, 2019 or at all, the terms of the LOI will not be as anticipated by management and CANNA PROVISIONS INC. will not manufacture and distribute CannAmerica branded CBD infused products in Massachusetts. 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.