On May 12, 2021, we issued a press release titled "Cann American Corp. Announces New Subsidiary." Following the acquisition of Hourglass Enterprises LLC, which was to focus on packaging and labeling under newly implemented Metrc track and trace systems, an announcement was released by Metrc on May 20, 2021, that an Oklahoma cannabis operator sued the state of Oklahoma over the implementation of Metrc's track and trace system and that operator was granted a temporary restraining order by the courts. Due to the pending litigation, the Company's belief that the suit may prevail, and Hourglass Enterprises LLC's reliance on Metrc as a standardized system, we rescinded the Agreement and unwound Hourglass as a subsidiary of the Company on May 24, 2021.
Since that time, Cann American brought on Brad Hanger, the owner of Hourglass and Hanger Consultations, as a Director of the Company and the parties have worked over several months to recalibrate the operations of Hourglass and bring the Company back under Cann American. With there no longer being a reliance on the Metrc track and trace system for the foreseeable future, Hourglass is now engaging in a broader but less restrictive packaging, labeling, and merchandising of products for the Oklahoma cannabis industry.
Hourglass is already assisting operators in medium to large scale labeling of extract jars, pre-roll packaging and other various branding needs to get quality products onto dispensary shelves throughout Oklahoma.
Cann American believes the acquisition of Hourglass will generate consistent revenue streams and provides the Company with a significant footprint in the Oklahoma cannabis market, in line with its long term expansion strategy into viable markets beyond California.
Stated Cann American Corp. CEO, Jason Black: "I'm excited that our board was able to reimagine our approach to the Hourglass subsidiary and begin operations quickly. Oklahoma is among the fastest growing and most dynamic cannabis markets in the US. This acquisition allows Cann American to network with an array of Oklahoma operators which will certainly create additional revenue generating opportunities going forward."
https://www.accesswire.com/668094/cann-american-corp-announces-restructured-acquisition