International Cannabrands Inc.
Friday, September 21, 2018 - 10:25 AM EDT

International Cannabrands Signs Definitive Purchase and Sale Agreement with La Vida Verde



Calgary, Alberta (FSCwire) - International Cannabrands Inc. (CSE:JUJU) (the “Company”) is pleased to announce that it has signed a definitive agreement for the acquisition of 51% of La Vida Verde (“LVV”).  The Company is acquiring its equity interest in LVV for US$6 million (comprised of US$3.0 million in common shares of the Company and US$3 million in cash) and investing an additional US$2 million of working capital into the business. The transaction is at arm’s length.  See press releases dated April 24, and July 9, 2018, for additional information.

 

The acquisition will be completed through two significant closing events – the first on November 1, 2018, where the Company will pay US$1 million to acquire an 8.5% equity interest and will have invested US$1.3 million into the business and a second closing on January 2, 2019, where the Company will acquire an additional 43% of LVV in exchange for the issuance of 25,225,161 Common Shares of the Company and schedule principal seller’s notes for an aggregate of US$2,000,000 due as to 50% on March 31, 2019 and October 31, 2019.  The notes bear interest at a rate of 5% per annum and are secured by a pledge of the securities purchased. An additional working capital investment in the business of US$700,000 will be made in April 2019. 

 

La Vida Verde is a highly respected branded cannabis product manufacturer and distributor based in Santa Cruz, CA.  The business has powerful growth prospects due to its family of brands including Skunk Feather concentrates, organic LVV edibles and other cannabis products.  La Vida Verde was founded and is run by Bryce Berryessa and Eric Hara, two of the most respected veterans of the cannabis industry in California. Selected financial information for LVV for the six months ended June 30, 2018 (all of which has been prepared by LVV’s management), includes the following:  Revenue of $8,980,022; Net Income of $545,653; Total Assets of $2,621,325 and Total Liabilities of $1,358,818 which includes $110,000 of long term liabilities.    

 

The working capital investment in LVV will support an expansion of sales and operations staff, inventory required by rapid growth and to expand manufacturing capacity. 

 

Steve Gormley, CEO of International Cannabrands Ltd., commented: “We are so very excited to have been able to complete the agreement to invest in La Vida Verde. LVV is an excellent example of the type of business we are seeking and the types of partners we wish to bring into our family. Obviously we are very focused in the near term on funding the acquisition per the agreement.”

 

About International Cannabrands (ICI)

 

ICI acquired the exclusive rights to Julian Marley's JuJu Royal™ brand. ICI currently generates revenue from licensing brands to growers, edible manufacturers, oil extractors, producers of ancillary products and apparel in the United States where cannabis has been legalized at the state level, as well as products containing CBD in the US and internationally. ICI intends on acquiring micro brands with highly profitable operations in the cannabis space.  The Company believes as the market becomes saturated with products varying in potency and quality, that the branded products will rise to the top and the Company intends to exploit all opportunities available to realize the full value of the Julian Marley brand and other brands.

 

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 using the best solventless technology. One percent of proceeds are distributed for the benefit of veterans using cannabis through the Weed for Warriors Project. More information about the brand and various products can be obtained at www.jujuroyal.net. International Cannabrands Ltd is continuing to work with Julian Marley to identify and develop future strains of marijuana that meet Julian’s exacting standards. The Company is continuing to conduct research and development with certain origin genetics to produce additional signature Julian Marley strains for the JuJu Royal Premium Marijuana collection. The intent is to make these strains available to dispensaries and caregivers on a worldwide basis where it is legal.

 

International Cannabrands Contact:

 

Steve Gormley

CFN Media Contact:

Chief Executive Officer

Frank Lane (206) 369-7050

1045 Lincoln Street, #106

flane@cannabisfn.com

Denver, Colorado 80203

 

Ph: (323) 828-4321 or steve.gormley@intlcannabrands.com

 

Media Inquiries:  media@jujuroyal.net

 

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 the proposed acquisition of LVV, including the timing and conditions thereto. There is no assurance that the Transaction will be completed in the time estimated or at all or whether 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







Source: International Cannabrands Inc. (CSE:JUJU, OTC Bulletin Board:GEATF)

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