Cannabis Global Acquires Stake in Natural Plant Extract for $2
Million - Positions Company for Further Growth in Multi-Billion
Dollar California Marketplace
LOS ANGELES, CA -- September 1, 2020 -- InvestorsHub NewsWire --
Cannabis Global, Inc. (OTC:
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
IR@cannabisglobalinc.com
+1-(310)-986-4929
Public Relations:
Tiger Global Management
info@TigerGMP.com
www.TigerGMP.com
SOURCE Cannabis Global, Inc.
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Related
Links
https://hempyoucanfeel.com/