DENVER, CO / ACCESSWIRE / January 7, 2019 / International Cannabrands Inc. (CSE: JUJU) (the "Company") is pleased to announce that further to its press release dated December 7, 2018, it has completed the second closing event to acquire a 51% equity interest in La Vida Verde, Inc. ("LVV").
La Vida Verde is a highly respected branded cannabis product manufacturer and distributor based in Santa Cruz, CA. The business has powerful growth prospects due to its family of brands including Skunk Feather concentrates, organic LVV edibles and other cannabis products. La Vida Verde was founded and is run by Bryce Berryessa and Eric Hara, two of the most respected veterans of the cannabis industry in California.
Pursuant to the definitive agreement dated September 19, 2018 (the "Definitive Agreement"), as amended, the Company made an aggregate capital contribution of US$1.3 million to LVV, issued 25,225,161 Common Shares of the Company to the holders of LVV and promissory notes for an aggregate of US$2,000,000 due as to 50% on March 31, 2019 and 50% October 31, 2019. The notes bear interest at a rate of 5% per annum and are secured by a pledge of the portion of the securities represented by the amounts owing. The Common Shares are subject to a restriction in that the holders have agreed that without the express written consent of the Company, no more than 50% may be sold in the calendar year 2019 with the balance only saleable in 2020 or after
In addition, pursuant to the Definitive Agreement a subsequent US$700,000 capital investment is contemplated to be made in April 2019. In addition, under the Definitive Agreement, one of either Eric Hara, Bryce Berryessa (or their nominee) is expected to join the Board of Directors of the Company, and Steve Gormley will join the Board of LVV.
The capital investments in LVV supported an expansion of sales and operations staff, inventory required by rapid growth and to expand manufacturing capacity.
About International Cannabrands (ICI)
ICI acquired the exclusive rights to Julian Marley's JuJu Royal™ brand. ICI currently generates revenue from licensing brands to growers, edible manufacturers, oil extractors, producers of ancillary products and apparel in the United States where cannabis has been legalized at the state level, as well as products containing CBD in the US and internationally. ICI intends on acquiring micro brands with highly profitable operations in the cannabis space. The Company believes as the market becomes saturated with products varying in potency and quality, that the branded products will rise to the top and the Company intends to exploit all opportunities available to realize the full value of the Julian Marley brand and other brands.
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 using the best solventless technology. One percent of proceeds are distributed for the benefit of veterans using cannabis through the Weed for Warriors Project. More information about the brand and various products can be obtained at www.jujuroyal.net. International Cannabrands Ltd is continuing to work with Julian Marley to identify and develop future strains of marijuana that meet Julian's exacting standards. The Company is continuing to conduct research and development with certain origin genetics to produce additional signature Julian Marley strains for the JuJu Royal Premium Marijuana collection. The intent is to make these strains available to dispensaries and caregivers on a worldwide basis where it is legal.
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Forward Looking Statements
This news release contains forward-looking statements. There is no assurance that International Cannabrands will be able to realize all the expected benefits from its acquisition of 51% of LVV. These forward looking statements involve risks and uncertainties. Events or circumstances may cause actual results to differ materially from those anticipated as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company or the parties to the agreement. These include legal and regulatory changes, the impact of general economic, industry and market conditions; expectations regarding market demand for particular products and the dependence on new product development; the impact of product competition. As a result, the Company cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and Management of the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
SOURCE: International Cannabrands Inc.