(TheNewswire)
V A N C O U V ER, B C – TheNewswire - December 16, 2021 – CannAmerica Brands Corp. (CSE:CANA) (CNSX:CANA.CN) (OTCQB:CNNXF)(" CannAmerica " or the " Company ”) is pleased to announce the Company has successfully executed a Purchase Agreement(the “ Agreement ”) of CannAmerica’s Colorado licensee, Arsenal Oils andExtracts (“ Arsenal ”), a Colorado licensed manufacturerof infused products and maker of Anointed andLo-Hi brands. Arsenal’s annual sales of its branded products hasreached USD$2,040,000 to date in the legal wholesale market inColorado .
The Agreement includes employment agreements for themanagement team of Arsenal, who will be joining the CannAmerica team. DAFF International, LLC, a wholly owned US subsidiary of CannAmericawill enter into a management agreement with Arsenal to manage thebusiness and operations of Arsenal during the required regulatoryreview and approval process prior to the closing of theacquisition.
The terms of the Agreement are as follows:
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$2 million USD purchase price for the entirety ofArsenal’s operating business and assets, including equipment, theManufacturer of Infused Products license issued by the ColoradoMarijuana Enforcement Division, and Arsenal’s brands andintellectual properties.
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$600,000 cash component post-closing.
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$1,400,000 in the Company’s common shares, issuedover a two-year structured period.
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Upon approval by all regulatory bodies in both theUnited States and Canada, the Company will own 100% of Arsenal’sbusiness and be the operator in the State of Colorado formanufacturing and wholesale distribution of all of Arnsenal’sbranded products.
Dan Anglin, CannAmerica’s founder and Chief ExecutiveOfficer stated “The Company is pleased to announce this acquisitionof Arsenal. This will represent a significant increase in theCompany’s revenues and add the expertise of Arsenal’s managementteam, long-time cannabis pioneers, to the Company’s already expertmanagement team.” Mr. Anglin continued, “The Company has beenworking towards this acquisition for some time, all the while planningthe expansion of the Company’s assets and footprint in multiplemarkets. The new management team look forward to increasing theCompany’s brands, expanding the choices of cannabis products inColorado and bringing Arsenals’s Anointed and Lo-Hi branded productsinto other markets across the country. The Company looks forward toexpanding production space, providing the Colorado cannabis marketwith new and unique products, while also creating more opportunitiesfor social equity and veterans through this acquisition. Arsenal is ablack-owned cannabis business and the founder, Rainbow Coleman, is aUnited States Air Force veteran who has built a team of professionalsand military veterans that will enhance the CannAmerica’s team. Mineand Mr. Coleman’s goals of bringing equity into the cannabisindustry while creating meaningful opportunities for veterans is aperfect combination for success in Colorado and beyond.”
The closing will occur as mutually agreed upon by theCompany and Arsenal, subject to the receipt of all necessaryregulatory approvals in both the United States and Canada, includingthe approval of the Canadian Securities Exchange. The CanadianSecurities Exchange may determine the acquisition to be a“fundamental change” under Policy 8 of the Canadian SecuritiesExchange Policies. All securities issued pursuant to the acquisitionwill be subject to a four-month hold period in accordance withapplicable Canadian securities laws.
A bou t CannAmerica Brands Corp.
CannAmerica is a U.S. marine veteran founded andoperated portfolio of cannabis brands with licensing agreements in thestates of Colorado, Nevada, Oklahoma, Massachusetts and the Country ofCanada. The Company aims to maximize the value of its brands byemploying strong brand management teams, marketing and licensing thebrands through various distribution channels, including dispensaries,wholesalers, and distributors, in the United States andinternationally. The Company's core strategy is to enhance andmonetize the global reach of its existing brands, and to pursueadditional strategic acquisitions to grow the scope and diversity ofits brand portfolio.
For more information, please visit: www.cannamericabrands.com .
Contact: Dan Anglin,Chief Executive Officer and Director of CannAmerica BrandsCorp.
E m a il : info@cannamericabrands.com
Cautionary Note RegardingForward-Looking Statements: This release includes certain statementsand information that may constitute forward-looking information withinthe meaning of applicable Canadian securities laws. Forward-lookingstatements relate to future events or future performance and reflectthe expectations or beliefs of management of the Company regardingfuture events. Generally, forward-looking statements and informationcan be identified by the use of forward-looking terminology such as"intends" or "anticipates", or variations of suchwords and phrases or statements that certain actions, events orresults "may", "could", "should","would" or "occur". This information and thesestatements, referred to herein as "forward?lookingstatements", are not historical facts, are made as of the date ofthis news release and include without limitation, statements regardingdiscussions of future plans, estimates and forecasts and statements asto management's expectations and intentions with respect to, amongother things, the ability of the Company to file the Annual Filingswithin the time period described herein.
These forward?looking statementsinvolve numerous risks and uncertainties and actual results mightdiffer materially from results suggested in any forward-lookingstatements. These risks and uncertainties include, among other things:the Company being unable to file the Annual Filings in the proposedtimeframe.
In making the forward lookingstatements in this news release, the Company has applied severalmaterial assumptions, including without limitation, that: the Companywill be able to file the Annual Filings in the proposed time frame.
Although management of the Companyhas attempted to identify important factors that could cause actualresults to differ materially from those contained in forward-lookingstatements or forward-looking information, there may be other factorsthat cause results not to be as anticipated, estimated or intended.There can be no assurance that such statements will prove to beaccurate, as actual results and future events could differ materiallyfrom those anticipated in such statements. Accordingly, readers shouldnot place undue reliance on forward-looking statements andforward-looking information. Readers are cautioned that reliance onsuch information may not be appropriate for other purposes. TheCompany does not undertake to update any forward-looking statement,forward-looking information or financial out-look that areincorporated by reference herein, except in accordance with applicablesecurities laws. We seek safe harbor.
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