VANCOUVER, June 24, 2019 /CNW/ – CANNAMERICA BRANDS CORP. (“CANA” or the “Company”) (CSE: CANA) (OTCQB: CNNXF) is pleased to announce that on June 20, 2019 it had entered into a non-binding letter of intent (“LOI”) 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 disposable vape pens, and Live Labs branded cannabis concentrate products, including droppers, shatter and wax concentrate products, and gelatin based capsules (the “Licensed Products”) in the Commonwealth of 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.
CannAmerica Brands Corp. (CNW Group/CannAmerica Brands Corp.)
Terms of the LOI are as follows:
- The initial term of the license agreement will be for a period of 3 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 license fee to manufacture and distribute the Company’s products;
- The Licensee will purchase all un-infused 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, CEO 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, CEO of Canna Provisions Inc., 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.”
For more information, please visit www.cannamericabrands.com.
On Behalf of the Board,
CEO and Director
About CannAmerica Brands Corp.
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.
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, Instagram and Twitter.
SOURCE CannAmerica Brands Corp.
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