LOS ANGELES, CA / ACCESSWIRE / November 9, 2020 / Cannabis Global, Inc. (OTC PINK:CBGL), a cannabinoid and hemp extract science-forward company developing infusion and delivery technologies and investing in fast-growing cannabis markets, today announces an acceleration of its plans to expand operations in the cannabis sector in reaction to the significantly improved prospects for nationwide legalization of cannabis.
The strategic expansion will be conducted with Natural Plant Extract of California, Inc ("NPE"). The Company recently acquired an 18.8% strategic investment stake in NPE, which operates a licensed cannabis manufacturing and distribution business in Lynwood, California. NPE holds a special Type 7 California cannabis manufacturing license, allowing for volatile extraction methodologies, as well as cannabis product distribution anywhere in the state.
"We are already seeing rapid expansion of cannabis legalization across the United States, with last week multiple states voting to legalize. With a new Biden Administration, we believe the winds of change toward probable federal de-scheduling and legalization are accelerating," commented Arman Tabatabaei, CEO. "With a combination of our growing intellectual property portfolio and the continued expansion of our relationship in the licensed cannabis segment with NPE, nationwide cannabis legalization creates expanding opportunities for our Company."
NPE plans to finish the build-out of a full scale, state-of-the-art cannabis extraction and product manufacturing facility at the Lynwood facility during Q1 2021 under the consulting direction of Irvine based industry leader,Abstrax Tech, pursuant to the Contract Manufacturing agreement between the two companies. These products and products manufactured by other companies will then be distributed to retailers throughout California via Northern Lights Distribution. Besides extracted product inputs and finished products to be sold to consumers, the Cannabis Global team will also have access to a state-of-the-art portfolio of botanically derived and cannabis-inspired terpenes. NPE recently sold its non-store front retail delivery license to Amuse, a California cannabis delivery company, and is currently subleasing part of the Lynwood facility to the delivery business.
Cannabis Global also expects cost synergies from its strategic relationship with NPE, which is currently in the final stages of building a state-of-the-art cannabis volatile extraction lab that will focus on making premium concentrates. The buildout has been 95% completed and they are in the final stage of completing some minor cosmetic improvements externally and power upgrades. This crucial strategic relationship will allow for mutual vertical integration for the Company and potentially for NPE and Northern Lights Distribution. Each of these partners will have a strong incentive to provide the best products and services to each other, allowing for reduced costs and better products to be designed, manufactured, and distributed to California Cannabis consumers.
Mr. Tabatabaei continued, "We believe the opinion expressed by voters in New Jersey, Arizona, Montana and South Dakota, who overwhelmingly voted for recreational legalization, reflect the general mood of the entire country. The signal has clearly been sent that most Americans want national legalization and this view has already been validated by the incoming administration. We feel this growing wave of legalization creates an outstanding opportunity for our Company, but also for NPE and our other strategic partner, Marijuana Company of America (OTC: MCOA). Additionally, we are excited about the expected positive impact this will have on our management contract with Whisper Weed cannabis delivery business that has already experienced an uptick in sales due to the COVID pandemic and new buying patterns of Los Angeles based cannabis consumers."
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 (THC-V) and to develop products based on this cannabinoid.
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
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SOURCE: Cannabis Global, Inc.