Calgary, Alberta (FSCwire) - International Cannabrands Inc. (CSE:JUJU.A) (the “Company”) is pleased to announce that it has signed a non-binding letter of intent to invest $1 million to acquire a minimum of 51% of Riotus SODO LLC, one of the operating units of Riotus LLC (“Riotus”). Riotus provides facility and operations finance and consulting to the cannabis industry. Riotus partners with some of the fastest growing and leading licensed operators in the cultivation, extraction, branding, manufacturing and distribution markets. Riotus targets core geographies including California, Nevada, Washington State and Michigan.
The investment continues the Company’s strategy of investing in accretive cannabis companies within distribution, branding and attractive “pinch points” in the cannabis value chain. If completed, the Riotus deal is expected to generate earnings and cash flow beginning in the second quarter of 2019, which would materially increase the Compnay’s earnings and cash flow. Riotus also has strong brand and distribution relationships which the Company intends to leverage going forward.
The terms of the investment by the Company would be approximately $1 million cash. The investment is expected to be funded 60% by September 7, 2018, 20% by October 1, 2018, and the remainder before November 15, 2018. In addition, the Company expects to sign a distribution agreement for its brands, specifically starting with JuJu Royal™, in Washington State through Riotus’ strategic relationships.
Steve Gormley, CEO shared “We are extremely pleased to have been able to come to this investment with Riotus. The combination of expected strong profits and cash flow with the added bonus of an extension of our brand distribution footprint should be a significant contributor to our earnings going forward.”
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 investment by the Company in Riotus. The letter of intent is non-binding and there is no assurance that the investment will be completed or that the Company will be able to realize all the expected benefits from the subsequent investments by Riotus. 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, the dependence on new product development; and 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.
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Source: International Cannabrands Inc. (CSE:JUJU.A, OTC Bulletin Board:GEATF)
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