LOS ANGELES, CA / ACCESSWIRE / September 1, 2020 / Cannabis Global, Inc. (OTC PINK:CBGL) ("Cannabis Global" or the "Company"), a cannabinoid and hemp extract science-forward company developing infusion and delivery technologies and investing in fast-growing cannabis markets, today announces it has acquired a stake in Natural Plant Extract of California, Inc. ("NPE"), which operates a licensed cannabis manufacturing and distribution business operation out of Lynwood, California. NPE owns a Type 7 California Manufacturing License as well as a California Distribution license. Under the terms of the agreement, which closed on August 31, 2020, the Company is purchasing (18.8%) of Natural Plant Extract's outstanding capital stock.
"This is a significant agreement for Cannabis Global, as it provides the Company with further penetration into the important California market, which is valued at billions of dollars per year," commented Chief Executive Officer, Arman Tabatabaei. "We believe we create significant added value for our shareholders and new synergies by combining our managerial talents and technologies with the licenses and marketplace opportunities of NPE. We have aspirations of becoming a major distributor and manufacture of our cannabis products in California. NPE is ahead of most of the competition in the state in terms of permitting, build-out and licensing."
Under the terms of the agreement, which will be further explained in an upcoming filing with the Securities & Exchange Commission ("SEC"), the Company will pay the seller 27 monthly payments of $20,000 and a long-term note for $1,500,000, which can be converted to common shares in the Company at a later date. The total purchase price is $2,040,000. As a result of the acquisition, Cannabis Global expects to book over $2 million of net tangible assets as of the end of the August 31, 2020 fiscal year, likely allowing the Company to become "penny stock exempt" based on the OTC Markets guidelines and to be eligible for the up-listing of its common stock trading venue.
The Company believes this investment will allow for faster expansion into important distribution channels for California and speed market penetration of several internally developed cannabis-related technologies, while meaningfully expanding the asset base of the Company. NPE is currently operating as a distributor and is completing the build-out of its manufacturing facility, which is expected to be completed and fully operational in the first quarter of 2021.
Mr. Tabatabaei continued, "We see many applications for our technologies within the regulated THC-oriented marketplace. Without access to partners with the proper licenses, we have been limited only to the hemp and CBD marketplaces. We expect this new relationship and equity stake in NPE to significantly change this dynamic allowing us more freedom in introducing our cannabis technological innovations to the very active California marketplace."
About Cannabis Global, Inc.
Cannabis Global, Inc., formerly known as MCTC Holdings, Inc., is a fully audited and reporting Company with the U.S. Securities & Exchange Commission, trading with the stock symbol CBGL. The Company is an emerging force in the area of cannabinoid sciences and highly bioavailable hemp and cannabis infusion technologies. The Company does not engage in the production, distribution, or sales of any controlled substances, including marijuana. The Company has an actively growing portfolio of intellectual property having filed six patents in the areas of cannabinoid delivery systems and cannabinoid polymeric nanoparticles. The Company markets its consumer products under the Hemp You Can Feel™ brand name. Cannabis Global launched its Project Varin early in 2020, to develop new delivery methods for rare cannabinoid Tetrahydrocannabivarin (THV-C) and to develop products based on this cannabinoid.
Forward-Looking Statements
This news release contains "forward-looking statements" which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as "anticipate", "seek", intend", "believe", "estimate", "expect", "project", "plan", or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.
For more information, please contact:
Arman Tabatabaei
[email protected]
+1-(310)-986-4929
Public Relations:
Tiger Global Management
[email protected]
www.TigerGMP.com
Related Links
https://hempyoucanfeel.com/
SOURCE: Cannabis Global, Inc.