VANCOUVER, Oct. 30, 2019 /PRNewswire/ - CANNAMERICA BRANDS CORP. ("CannAmerica" or the "Company") (CSE: CANA) (OTCQB: CNNXF) is pleased to announce that on October 28, 2019, it entered into a long-term licensing agreement (the "Agreement") and brand partnership 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 Live Labs branded concentrate products (the "Licensed Products") in the Commonwealth of Massachusetts.
Terms of the Agreement include:
- the initial term will be for a period of 3 years;
- Canna Provisions Inc. will follow formulations and processes provided by the Company;
- If Licensor wishes to grant a license to a third-party licensee with respect to the marketing, sale, and distribution of Licensed Products in New York, Connecticut, Vermont, New Hampshire, Maine, or Rhode Island, Canna Provisions Inc. has the right of first refusal;
- during the first 180 days of the initial term, the licensee will employ one full-time salesperson in Massachusetts to promote, market, advertise, and sell the Licensed Products;
- In addition to the fees contained in the agreement, a licensee fee of US$500,000 due to the Company in installments, payable as follows:
- US$50,000 within two days after the mutual execution of the Agreement;
- US$200,000 in installment payments (US$50,000 per month for a period of four months) with the first installment due two days after the Licensee obtains a license for its production facility from the Commonwealth of Massachusetts;
- US$250,000 due 12 months after the Effective date of the Agreement
- Upon receipt of the final cash payment of each specific installment, CANA will issue the Licensee US$250,000 of the Licensor's common stock at a per share issue price equal to the closing price of CANA's common stock on the day the Licensor receives final payment of each installment.
- the Agreement may be terminated in certain circumstances, including:
- applicable state or location regulatory authorities reject or cancel the Agreement, determine that the Agreement is illegal or impermissible, or determine that the Agreement would require the Company to be registered as an owner of the Licensee;
- applicable federal authorities require the parties to cease performing under the Agreement or threaten enforcement against the parties in relation to the Agreement or to either party's violation of federal law regarding cannabis;
- upon 120 days' written notice by either party to the other party; or
- by either party within five days' written notice to the other if the other party files a petition of bankruptcy or is adjudicated bankrupt.
"We are thrilled to announce our agreement with Canna Provisions Inc. for manufacturing and distribution of CannAmerica branded edibles products in the great State of Massachusetts," said Dan Anglin, CEO and Co-Founder of CannAmerica. "Having the opportunity to work in concert with a knowledgeable team and operation that continues to expand its footprint across the state is an exciting beginning to the final quarter of 2019."
"By signing this Agreement, CannAmerica is poised to bring its lineup of products into a growing cannabis market and spread our brand into the Northeastern United States," said Anglin. "Partnering with a group that shares our vision will allows us to continue to achieve the organizational success we had envisioned for the year."
For more information, please visit www.cannamericabrands.com.
On Behalf of the Board,
Dan Anglin
CEO and Director
1(844) 484-3996
About CannAmerica Brands Corp.
CannAmerica is a U.S. marine veteran founded and operated portfolio of cannabis brands with licensing agreements in the states of Colorado, Nevada, Oklahoma, Maryland and the Country of Canada. 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 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. 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 CannAmerica branded products are expected to be available in Massachusetts in the coming months, that such products are anticipated to increase the quality and variety of products available to the Massachusetts medical cannabis patient community, that Canna Provisions, Inc. will manufacture and distribute CannAmerica branded 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 CannAmerica branded products will be available in Massachusetts in the coming months, that such products will increase the quality and variety of products available to the Massachusetts medical cannabis patient community, the ability of Canna Provisions Inc. to manufacture and distribute CannAmerica branded 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 CannAmerica branded products will not be available in Massachusetts in the coming months, that such products will not increase the quality and variety of products available to the Massachusetts medical cannabis patient community, the inability of Canna Provisions Inc. to manufacture and distribute CannAmerica branded products in Massachusetts, if at all. 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.
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SOURCE CannAmerica Brands Corp.