LOS ANGELES, CA / ACCESSWIRE / July 7, 2021 / Marijuana Company of America, Inc. (OTC PINK:MCOA) ('the Company'), a diversified holding company with operations and investments throughout the cannabis industry, today announced it has completed a stock-for-stock merger acquisition of cDistro, Inc. ('cDistro'). cDistro is a rapidly-expanding hemp industry distribution company and is expected to deepen the Company's distribution presence in North America. The Company plans to operate cDistro as a wholly-owned subsidiary.
Pursuant to the terms and conditions of the merger transaction, all of the issued and outstanding shares of common stock of cDistro were exchanged for shares of common stock of MCOA, resulting in cDistro becoming a wholly owned subsidiary of MCOA. The former securityholders of cDistro now hold approximately 5.23% of the issued and outstanding common stock of the Company, and may earn additional Company common stock over the next twelve months if certain revenue targets are met by cDistro.
The acquisition of cDistro by the Company is an arm's length transaction and was completed subject to a number of conditions, including, but not limited to, the execution of definitive agreements, the completion of mutually satisfactory due diligence, and the receipt of all required regulatory, corporate and third-party approvals, including the approval of a majority of shareholders of cDistro, and the fulfillment of all applicable regulatory requirements and conditions necessary to complete the acquisition.
A Current Report on Form 8-K containing more detailed information regarding the merger transaction and the Company will be filed with the Securities and Exchange Commission
At its website www.cdistro.com, cDistro distributes a select list of quality CBD brands along with smoke and vape shop related products to wholesalers, c-stores, specialty retailers, and dispensaries in North America. cDistro has seen rapid growth since its inception in the second quarter of 2020 by distributing a select catalog of eight unique product lines currently being sold to over 250 customers. cDistro currently generates approximately $150,000 per-month in gross revenues with good margins, which will be included in MCOA's audited consolidated financial statements.
'cDistro is uniquely positioned to take advantage of the developing market opportunity generated by consumers' growing demand for quality hemp products. This acquisition is significant for MCOA, as it further positions us to take advantage of immediate revenue and a healthy opportunity to seize significant market share in the specialty distribution space', said Jesus M. Quintero, CEO of MCOA.
Ron Russo, the CEO of cDistro, stated, 'This acquisition is highly synergistic and intended to amplify cDistro's national distribution. We believe that with MCOA's operational support, cDistro has the opportunity to become a dominant distributor of products infused with CBD and hemp in the North American market. In its relatively short period of incubation, cDistro has built strong and actionable relationships with quality wholesalers, retailers, and dispensaries, and the cDistro team looks forward expanding our business exponentially with the backing of MCOA and our mutual goal of bringing innovative hemp products to consumers.'
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.
SOURCE: Marijuana Company of America, Inc.