VANCOUVER, Aug. 12, 2019 /CNW/ - CANNAMERICA BRANDS CORP. ("CannAmerica" or the "Company") (CSE: CANA) (OTCQB: CNNXF) is pleased to announce that on August 8, 2019, it entered into a long-term licensing agreement (the "Agreement") and brand partnership with Swiss Lux Products, Inc., ("Swiss Lux" or the "Licensee"). Under the Agreement, Swiss Lux will have use of the Company's renowned Intellectual Property, Branding, and Formulation processes in exchange for a royalty on all sales of the Company's products within Canada.
"CannAmerica is looking forward to our entry into the Canadian recreational market, as this agreement marks our first opportunity to bring our branded products to an entire nation" said Dan Anglin, CEO and Co-Founder of CannAmerica. "With Canada allowing for a multitude of finished products in the cannabis marketplace, CannAmerica is ready to introduce the Canadian cannabis consumer to products that have thus far been unavailable; we anticipate a vibrant response to our menu of offerings, and anticipate a positive response to our company's dedication to high quality products." Anglin continued, "Because Swiss Lux is only interested in collaborating with premium brands, this agreement provides them with the opportunity to utilize our supply chains and expertise as they develop and commercialize high-quality cannabis products for the recreational, cosmeceutical, edible, beverage, and medical markets."
The terms of the Agreement include the following:
- the initial term of the Agreement will be for a period of 3 years;
- the Agreement provides for a license of the use of the Company's intellectual property, for which the Licensee will pay the Company a royalty percentage on gross sales;
- the Licensee will purchase all un-infused consumable ingredients, packaging supplies, and branded hardware as per the direction of the Company;
- the Licensee will follow formulations and processes provided by the Company;
- during the first 180 days of the initial term, the Licensee will employ one full-time salesperson in Canada to promote, market, advertise, and sell the products subject to the Agreement; and
- the Agreement may be terminated in certain circumstances, including:
- applicable regulatory authorities rejecting or canceling the Agreement, determining that the Agreement is illegal or impermissible, or determining that the Agreement would require the Company to be registered as an owner of the Licensee;
- applicable federal authorities requiring the parties to cease performing under the Agreement or threatening enforcement against the parties in relation to the Agreement or to either party's violation of federal law regarding cannabis;
- upon 120 days' written notice by either party to the other party; or
- by either party within five days' written notice to the other party, if the other party files a petition of bankruptcy or is adjudicated bankrupt.
The Agreement aligns with the Company's goals to become an international player in the cannabis space and to expand into additional markets during 2019.
Additionally, the Company announced today that it has resolved to issue 1,250,000 new shares to certain directors, officers, and employees at a deemed price of $0.17 per share. The issuance of common shares is subject to the prior approval of the Canadian Securities Exchange. All common shares issued in connection with this issuance will be subject to a four month hold period under applicable Canadian securities laws.
For more information, please visit www.cannamericabrands.com.
On Behalf of the Board,
CEO and Director
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 and Maryland. 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.
About Swiss Lux Products, Inc.
Swiss Lux Products, Inc. is executing on a strategy to acquire distinct brands with proven formulations and to build a robust portfolio of cannabis value added products. The Company's house of brands currently included Blessed™, a brand establishing itself in the Canadian edibles market with a focus on products for athletes, and Swiss Lux is actively pursuing complimentary brands to add to its portfolio.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
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. All statements in this news release, other than statements of historical facts, including statements regarding future estimates, plans, objectives, timing, assumptions or expectations of future performance, including that the Company's products will be sold in the Canadian cannabis market, are forward-looking statements and contain forward-looking information. 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". Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release, including that the sale of the Company's products will be permitted in the Canadian cannabis market. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Important factors that may cause actual results to vary, include, without limitation, that the sale of the Company's products will not be permitted in the Canadian cannabis market. 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.
SOURCE CannAmerica Brands Corp.
For further information: Media Contact, Sarah Thorson, Grasslands: A Journalism-Minded Agency, [email protected], (609) 234-8531