CannAmerica clarifies terms of acquisition of Arsenal Oils & Extracts in Colorado

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(TheNewswire)

CannAmerica Brands Corp.

 

VANCOUVER, BC – TheNewswire - December 22, 2021 – CannAmerica Brands Corp. (CSE:CANA) (CNSX:CANA.CN) (OTC:CNNXF) ("CannAmerica" or the "Company”) further to the Company’s news release dated December 16, 2021, wherein the Company announced the execution of the Purchase Agreement (the “Agreement”) of CannAmerica’s Colorado licensee, Arsenal Oils and Extracts, LLC (“Arsenal”) and the execution of a Management Agreement by the Company’s wholly owned US subsidiary DAFF International, LLC (“DAFF”), and Arsenal (the “Management Agreement”), the Company wishes to clarify the regulatory approvals necessary to complete this transaction.

 

The Company must obtain approval of the transfer of the Retail Marijuana Conditional License and the Retail Marijuana Products Manufacturer License by the State of Colorado Department of Revenue Marijuana Division and the associated City of Aurora Marijuana Enforcement Division, respectively (collectively, the “Approvals”).  The review process is lengthy and the timing of the receipt of these Approvals is beyond the control of the Company, the Company’s shareholders (the “Shareholders”) and the Canadian Securities Exchange (the “CSE”).

 

The transaction will result in a Fundamental Change of the Company under CSE Policies and is therefore subject to CSE review and Shareholder approval.  The transaction will not be submitted to the CSE and the Shareholders for review and approval until the Company has received the Approvals.

 

The Management Agreement provides for DAFF to manage the daily business operations of Arsenal beginning on January 1, 2022, throughout the required regulatory review and approval process and continuing until the closing of the acquisition.  The Management Agreement will renew automatically for an additional one year term if the acquisition has not closed by December 31, 2022, unless terminated by Arsenal for cause.

 

About CannAmerica Brands Corp.

 

CannAmerica is a U.S. marine veteran founded and operated portfolio of cannabis brands with licensing agreements in the states of Colorado, Nevada, Oklahoma, Massachusetts and the Country of Canada. The Company aims to maximize the value of its brands by employing strong brand management teams, marketing and licensing the brands through various distribution channels, including dispensaries, wholesalers, and distributors, in the United States and internationally. The Company's core strategy is to enhance and monetize the global reach of its existing brands, and to pursue additional strategic acquisitions to grow the scope and diversity of its brand portfolio.

 

For more information, please visit: www.cannamericabrands.com.

Contact:  Dan Anglin, Chief Executive Officer and Director of CannAmerica Brands Corp.

Email: [email protected]

Phone: 720.648.4044

Forward-Looking Statements

Cautionary Note Regarding Forward-Looking Statements: This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements regarding discussions of future plans, estimates and forecasts and statements as to management's expectations and intentions with respect to, among other things, the ability of the Company to obtain the Approvals.

These forward‐looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things: the Company being unable to obtain the Approvals.  

In making the forward looking statements in this news release, the Company has applied several material assumptions, including without limitation, that: the Company will be able to obtain the Approvals.

Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.

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