Cannamerica Brands Corp CNNXF

The LOI dated June 6th 2019

[ETalien]

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.


https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aCANA-2776338&symbol=CANA&region=C

 

CannAmerica, Canna Provisions sign licence LOI in Mass.

 

2019-06-24 07:29 ET - News Release

 

Mr. Dan Anglin reports

CANNAMERICA SIGNS LOI TO DISTRIBUTE LICENSED PRODUCTS IN MASSACHUSETTS

On June 20, 2019, CannAmerica Brands Corp. entered into a non-binding letter of intent (LOI) with Canna Provisions Inc. under which the licensee will have an exclusive licence 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 in 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 licence agreement will be for a period of three 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 licence fee to manufacture and distribute the company's products.
• The licensee will purchase all uninfused 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, chief executive officer 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, chief executive officer of Canna Provisions, 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."

About CannAmerica Brands Corp.

CannAmerica is a United States-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.