CALGARY, AB / ACCESSWIRE / December 17, 2018 / International Cannabrands Inc. (CSE: JUJU) (the "Company") is pleased to announce that it has received an update on the business of Riotus SODO LLC ("Riotus SODO"). Further to its press releases dated August 16 and 29, 2018, the Company made an investment of $500,000 in Riotus SODO. The investment ultimately represented a 20.6% ownership position. Previous estimates indicated the Company received a 25% position in Riotus SODO, however as the manager of Riotus SODO raised additional equity, the overall percentage obtained was impacted accordingly.
Riotus LLC provides expansion capital and business/project consulting services to experienced operators in the state legalized cannabis industry in the United States. Each investment is distinct and is structured as a series LLC. Riotus SODO is focused on the expansion/development of an 8,000 ft2 (350+ light) cultivation facility in Seattle, WA (the "Expansion Project"). The operator of the facility is Solstice Holdings Inc. ("Solstice"), a leading brand and distribution company in Washington State. In connection with the investment, Riotus SODO is entitled to receive fixed payments from Solstice beginning in the fourth month after completion of the Expansion Project.
Important milestones were achieved in November 2018 for the Expansion Project, including completing full designs, obtaining permitting from the relevant authorities and commencing construction. The Expansion Project was originally forecast to begin operations in March 2019 and to generate returns for Riotus SODO four months later (the "Full Distribution Date") beginning in July 2019. Riotus SODO informed the Company that it expects the Expansion Project to begin generating cash flow earlier than initially projected and that the expansion is currently under budget. If Solstice is able to realize the expected benefits from the Expansion Project and the Company's investment in Riotus SODO performs to plan, starting on the Full Distribution Date the Company should receive cash distributions of approximately US$25,000 a month for 21 months, and then approximately US$10,000 a month thereafter for a number of years. There are no costs associated with the distributions or offsetting amounts expected to be deducted.
"We are extremely pleased that Riotus SODO is performing well. As we mentioned previously, Riotus' introduction to Solstice resulted in a WA distribution letter of intent between Solstice and our JuJu Royal business. The specifics of that agreement are being negotiated with an expectation for a Q1 launch," noted Steve Gormley, CEO of the Company.
"The expected cash flow from Riotus SODO will provide a valuable contribution to our financial performance and our overall goal to begin generating positive cash flow from operations," added Gormley.
About International Cannabrands (ICI)
The Company's business model is to generate revenue from cannabis cultivation, brands ranging from flower to edibles and from THC to CBD, oil extraction, ancillary products and apparel in the United States. ICI markets products with THC content where that practice has been legalized at the state level through either medicinal or full recreational use. ICI also markets products containing CBD in the US and internationally. ICI's strategy centers on acquiring micro brands, distribution and specific manufacturing/cultivation companies in the cannabis space. ICI has acquired the exclusive rights to Julian Marley's JuJu Royal™ brand. The Company believes as the legal cannabis market evolves, high-quality, unique products will increasingly capture market share and provide a valuable platform for growth.
About JuJu Royal
Julian Marley conveys his message of legalization, freedom, and love through the JuJu Royal brand, a line of naturally produced medicinal herbs. Our vision is to realize the opportunity to become one of the largest brands in the Marijuana industry. The synergy between the Rastafarian culture, music, natural products and an "Irie" experience is a powerful foundation for our business. JuJu's strategy is to develop and grow a complete cannabis line based on an international appeal to a millennial lifestyle seeking a luxurious and premium experience. JuJu will capitalize on the unparalleled opportunity to position itself with unique, innovative, high quality brands that meet and exceed our customer's expectations. More information about the brand and various products can be obtained at www.jujuroyal.net.
International Cannabrands Contact:
Steve Gormley
Chief Executive Officer
1045 Lincoln Street, #106
Denver, Colorado 80203
Ph: (323) 828-4321 or [email protected]
Media Inquiries: [email protected]
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAS REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Disclaimer concerning Forward-looking Statements
Certain statements included herein constitute "forward-looking statements" within the meaning of applicable securities laws. Such forward-looking statements include, without limitation, the expected performance of the investment in Riotus SODO. and the expected impact on the revenue of the Company. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward-looking statements. Additional risks and uncertainties regarding the Company are described in its publicly-available disclosure documents filed by the Company on SEDAR (www.sedar.com). The forward-looking statements contained in this news release represent the Company's expectations as of the date of this news release, or as of the date they are otherwise stated to be made, and subsequent events may cause these expectations to change. Except as required by law, the Company does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events.
SOURCE: International Cannabrands Inc