Cannamerica Signs LOI to Distribute Licensed Products in Oklahoma
VANCOUVER, March 22, 2019 - CANNAMERICA BRANDS CORP. ("CANA" or the "Company") (CSE: CANA) (OTCQB: CNNXF) is pleased to announce that on March 14, 2019 it had entered into a binding letter of intent ("LOI") with THC, Inc. ("THC") under which THC will have an exclusive license to manufacture and distribute CannAmerica branded cannabis infused gummy products, other edible products, vape products, droppers, capsules, beverages, shatter and wax concentrate product the "Licensed Products") in Oklahoma.
Terms of the LOI are as follows:
- -The initial term of the license agreement will be for a period of 1 year and, upon mutual agreement, will be renewable for successive one year periods.
-Net price payable from THC to Company will be determined by a per package/unit fee relating to CannAmerica products that THC decides to produce.
-THC also agrees to pay the Company a license fee to manufacture and distribute the Company's products;
-THC will purchase all un-infused consumable ingredients, packaging supplies, and branded hardware exclusively from the Company;
-THC will follow formulations and processes provided by the Company;
-During the first 180 days of the Initial Term, THC is expected to employ two full-time sales people 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 May 1, 2019.
The Company looks forward to the opportunities an agreement with THC Inc offer to introduce the brand into Oklahoma and the Southern United States
said Dan Anglin, CEO and Co-Founder of CannAmerica.
The prospect of expanding our products into Oklahoma's newly created cannabis marketplace and increasing awareness of our brand and product lines in the Southern United States is a step forward to reaching the Company's growth goals for 2019 and providing more legal-age Americans in the Southern United States access to our quality products
For more information, please visit www.cannamericabrands.com.
On Behalf of the Board,
CEO and Director
Grasslands: A Journalism-Minded Agency
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.
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 THC by May 1, 2019, the terms of the LOI are expected to be as anticipated by management and THC is expected to manufacture and distribute CannAmerica branded CBD infused products in Oklahoma 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 THC by May 1, 2019, the terms of the LOI will be as anticipated by management and the THC will manufacture and distribute CannAmerica branded CBD infused products in Oklahoma. 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 THC by May 1, 2019 or at all, the terms of the LOI will not be as anticipated by management and THC will not manufacture and distribute CannAmerica branded CBD infused products in Oklahoma. 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.