WESTMINSTER, Colo.,
Oct. 17, 2014 /PRNewswire/
-- Cannabis Kinetics Corp. (OTCQB: CANK) ("Cannabis Kinetics"
or the "Company") an emerging fully integrated cannabis management
company, is pleased to announce that it has signed the definitive
agreement for the purchase of the operating assets of The Big
Tomato, an established Denver area
store, warehouse distribution facility, and online hydroponics and
indoor garden supplier.
As per terms of the binding Merger Agreement, Cannabis Kinetics
will acquire all the operating assets of The Big Tomato for a total
purchase price of $2,400,000 in cash
($400,000 payable at closing and the
balance payable over two years in eight (8) equal installments of
$250,000 commencing six months from
the closing), and 3,000,000 restricted common shares of Company
stock.
"The successful acquisition of the The Big Tomato and its
established operations will be a significant, positive milestone
event for all Cannabis Kinetics stakeholders. The acquisition
will mark the start of our strategy to build momentum for both The
Big Tomato and our proprietary Monarch brand on a national basis,"
commented Eric Hagen, CEO of
Cannabis Kinetics Corp. "In addition to providing an
immediate revenue stream of approximately $200,000 per month to the Company, this
acquisition provides access to The Big Tomato's incredibly
knowledgeable and experienced staff to build and leverage our
cannabis sector consulting business in each new market we plan to
expand into."
Hagen concluded, "To date, 23 states and Washington, D.C., having already enacted laws
to legalize medical and/or recreational cannabis, and more are
expected to follow suit very soon. The addition of The Big
Tomato's wholesale distribution and brick-and-mortar and online
stores, in conjunction with their extremely talented sales team to
the Cannabis Kinetics organization provides a significant market
advantage as we accelerate our growth strategy within the legal
cannabis sector across the country."
About The Big Tomato
The Big Tomato is leading supplier of hydroponics & indoor
gardening supplies for Denver,
Colorado and the surrounding communities since May of
2001. The Big Tomato provides thousands of indoor gardeners
and commercial growers with top quality hydroponic supplies at the
best prices. Every one of our sales staff members is an
experienced grower that is happy to help service your needs and
answer any questions that you might have. We sell various
types of products to include indoor gardening products, grow boxes,
grow lights, hydroponic systems, ballasts, bulbs, nutrients and
additives, and other high end hydroponic and gardening items.
The website storefront, TheBigTomato.com was created for the
discriminating indoor gardener who is looking for reliable
gardening help and customer service while at the same time enjoying
the great savings on the products they want to purchase. The
Big Tomato website is supported by a brick-and-mortar store and an
additional warehouse location for large commercial orders located
in Aurora, Colorado.
About Cannabis Kinetics Corp. (CANK)
Cannabis Kinetics is a fully integrated cannabis management
company with an office location in the Westminster suburb of Denver, Colorado. Founded and managed by
experienced marijuana industry professionals, the Company has
targeted various opportunities in the Colorado marijuana marketplace with a focus on
the management of recreational and medical marijuana retail
dispensaries, the management of licensed marijuana cultivation
facilities, production and distribution of hemp and marijuana
infused food & beverage and ancillary products. Additionally,
the Company will provide management of retail and wholesale
operations for grow stores and intends to pursue additional
business opportunities within manufacturing, equipment leasing,
real estate, product licensing and distribution, and other
strategic acquisitions. Cannabis Kinetics anticipates
expanding this business model into other select marijuana friendly
states.
Cannabis Kinetics files reports with the Securities &
Exchange Commission on EDGAR and anticipates continuing to file
such reports. The Company's filings can be viewed at
www.sec.gov.
Additional information regarding the Company can also be found
on its website at www.CannabisKinetics.com.
Contact:
Cannabis Kinetics Corp.
Toll-Free: (888) 668-2280
E-mail:
media@CannabisKinetics.com
Website: www.CannabisKinetics.com
Cautionary Language Concerning Forward-Looking
Statements
Statements in this press release may be "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Words such as "anticipate", "believe",
"estimate", "expect", "intend", and similar expressions, as they
relate to the company or its management, identify forward-looking
statements. These statements are based on current
expectations, estimates and projections about the company's
business based, in part, on assumptions made by management.
These statements are not guarantees of future performance and
involve risks, uncertainties and assumptions that are difficult to
predict, including whether Cannabis Kinetics Corp. will have the
necessary funds to close on the transaction described in this press
release, which it does not have as of the date of this press
release. Therefore, actual outcomes and results may, and
probably will, differ materially from what is expressed or
forecasted in such forward-looking statements due to numerous
factors, including those described above and those risks discussed
from time to time in Cannabis Kinetics Corp.'s filings with the
Securities & Exchange Commission. As a reporting issuer
with the Securities & Exchange Commission, Cannabis Kinetics
Corp. files Quarterly and Annual Reports and other documents on
EDGAR. We strongly urge all persons to read our filings at
www.sec.gov, which are publicly available, in conjunction with this
press release as we are in a highly regulated industry that
requires thorough research prior to making any decision regarding a
company, particularly an investment decision. In addition,
such statements could be affected by risks and uncertainties
related to Cannabis Kinetics Corp.'s (i) product demand, market and
customer acceptance of its equipment and other goods, (ii) ability
to obtain financing to expand its operations, (iii) ability to
attract qualified management representatives, (iv) competition,
pricing and development difficulties, (v) ability to fully
implement our business plan as a result of being a reporting issuer
with the Securities and Exchange Commission, and (vi) general
industry and market conditions and growth rates and general
economic conditions. Statements made herein are as of the
date of this press release and should not be relied upon as of any
subsequent date. The Company cautions readers not to place
undue reliance on such statements. Cannabis Kinetics Corp.
does not undertake, and specifically disclaims any obligation, to
update any forward-looking statements to reflect occurrences,
developments, unanticipated events or circumstances after the date
of such statement. Actual results may differ materially from
Cannabis Kinetics' expectations and estimates. Information on
Cannabis Kinetics Corp.'s website does not constitute a part of
this release.
SOURCE Cannabis Kinetics Corp.