CEO of International Cannabrands Publishes Open Letter to Shareholders and Announces Acceleration of Warrant Expiry Dates
Calgary, Alberta (FSCwire) - International Cannabrands Inc. (CSE:JUJU) (the “Company”) is pleased to share CEO, Steve Gormley’s letter to shareholders.
It has been a little more than a month since my last update to shareholders and I wanted to reflect on the great progress the Company has made in the five weeks since my last letter. The senior management team at International Cannabrands has been hard at work turning the Company around and creating shareholder value through acquisition, strategic partnerships and the restructuring of the Company’s capital structure.
Below is a list of the highlights:
- August 29, 2018, the Company invested US$600,000 to acquire 25% of Riotus SODO LLC, a company that has partnered with Solstice Holdings Inc., a leading brand and distribution company in Washington State. The investment is expected to provide strong accretive near term cash flow being in Q2 2019, a valuable platform for expansion of cash flow going forward and access to a highly respected producer and distributor for our products with an impeccable reputation.
- September 14, 2018, we completed a substantial restructuring of our capital structure and cancelled Preferred Shares and Common Shares representing a total of 115,766,613 voting shares, a 40% reduction in the outstanding equity on a non-diluted basis at that point. The number of Common Shares, on a fully diluted basis, was decreased by 27.7%. As a result the Company’s stock symbol changed from JUJU.A to JUJU.
- September 21, 2018 we signed a definitive agreement for the acquisition of 51% of La Vida Verde (“LVV”) for an aggregate cost of US$8,000,000. See press releases dated April 24, and July 9, 2018, for additional information. LVV is a highly respected branded cannabis product manufacturer and distributor based in Santa Cruz, California. The investment in LVV will support an expansion of sales and operations staff, inventory required by rapid growth and to expand manufacturing capacity.
- September 25, 2018, we announced a distribution agreement with Solstice Holdings, Inc. (“Solstice”), a private company in Washington State, for the production, promotion and distribution of the Julian Marley JuJu Royal™ line and other products of the Company in the Washington State market. Washington State is one of the three largest cannabis markets in the US and had total sales of cannabis $1.37 billion in 2017.
Over the past several weeks the market has responded well to the significant changes executed by the Company. We are focused on earnings and growth. I look forward to sharing more in the days, weeks and months to come.
In addition, the Company wishes to advise holders of an aggregate of 25,617,442 share purchase warrants issued in July and August, 2018 (the “Warrants”) with exercise prices ranging between $0.10 and $0.1187 per share, that based on the 10-day trading price of the Common Shares, pursuant to the terms of the Warrants the expiry date has been accelerated from 24 months to 30 days, namely, to 5:00 p.m. (Calgary time) on October 29, 2018. Any Warrants not exercised prior to that time will be null and void. Notices will also be sent to the registered holders thereof by mail.
About International Cannabrands (ICI)
The Company’s business model is to generate revenue from cannabis cultivation, brands ranging from flower to edibles and from THC to CBD, oil extraction, ancillary products and apparel in the United States. ICI markets products with THC content where that practice has been legalized at the state level through either medicinal or full recreational use. ICI also markets products containing CBD in the US and internationally. ICI’s strategy centers on acquiring micro brands, distribution and specific manufacturing/cultivation companies in the cannabis space. ICI has acquired the exclusive rights to Julian Marley's JuJu Royal™ brand. The Company believes as the legal cannabis market evolves, high-quality, unique products will increasingly capture market share and provide a valuable platform for growth.
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. Our vision is to realize the opportunity to become one of the largest brands in the Marijuana industry. The synergy between the Rastafarian culture, music, natural products and an “Irie” experience is a powerful foundation for our business. JuJu’s strategy is to develop and grow a complete cannabis line based on an international appeal to a millennial lifestyle seeking a luxurious and premium experience. JuJu will capitalize on the unparalleled opportunity to position itself with unique, innovative, high quality brands that meet and exceed our customer’s expectations. More information about the brand and various products can be obtained at www.jujuroyal.net.
International Cannabrands Contact:
Steve Gormley CFN Media Contact:
Chief Executive Officer Frank Lane (206) 369-7050
1045 Lincoln Street, #106 email@example.com
Ph: (323) 828-4321 or firstname.lastname@example.org
Media Inquiries: email@example.com
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR THEIR REGULATION SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Forward Looking Statements
This news release contains forward-looking statements relating to business and strategy of the Company. There is no assurance that International Cannabrands will be able to realize all the expected benefits therefrom. 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. (CSE:JUJU, OTC Bulletin Board:GEATF)
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