01:30:45 EDT Wed 22 May 2024
Enter Symbol
or Name
USA
CA



Login ID:
Password:
Save
Global Cannabis Applications Corp
Symbol APP
Shares Issued 180,152,483
Close 2022-01-24 C$ 0.04
Market Cap C$ 7,206,099
Recent Sedar Documents

Global Cannabis signs LOI to buy 33% of S. African firm

2022-01-25 09:43 ET - News Release

An anonymous director reports

GCAC TO ACQUIRE INTEREST IN LEADING SOUTH AFRICAN CANNABIS INSURANCE FIRM

Global Cannabis Applications Corp. has signed a letter of intent to acquire 33 per cent of a South African cell captive (CC) insurance company focused on cannabis grow operations in Southern Africa from Blue Anchor Risk Solutions. As part of the transaction, Global will grant Blue Anchor exclusive sublicense rights for Efixii software in South Africa, Lesotho and Zimbabwawe, and Blue Anchor will pay Global royalties fees based on the usage. The LOI is expected to become a definitive agreement no later than Feb. 15, 2022. Cultivators using Efixii will be offered preferred insurance rates by Blue Anchor due to Efixii's superior compliance and transparency, which reduces certain underwriters' risks.

For purposes of the transaction, CC will be valued at $600,000 such that Global will purchase 33 per cent of CC by granting four million new common shares of Global shares to Blue Anchor at a deemed price of five cents. The four million common shares of APP will be used by CC as collateral for its insurance book. The collateral may only be sold if a valid claim is registered by the holder of the collateral. Blue Anchor will grant an option to Global to purchase four million common shares back of APP at a price of 0.1 cent per share, exerciseable by the company the sooner of when the collateral is replaced by cash flow of the cell captive and the second anniversary of the transaction. Upon replacement of the collateral, Global will still maintain its 33-per-cent interest in the cell captive.

A cell captive is a special purpose insurance vehicle licensed to underwrite a particular class of risk or industry segment. Blue Anchor's cell captive provides the capability to underwrite medicinal cannabis cultivators and growers. Currently no other South African insurer offers industry-specific solutions to a rapidly growing market. There are approximately 45 approved commercial licences in South Africa with a further 150 applications in process. The Lesotho market is more advanced with approximately 15 growers now coming online. In Zimbabwe there are 47 licences issued or in the process of being issued.

"As the first cell captive insurance offered exclusively to the cannabis sector, we require governance and quality assurance by our cultivators of which Efixii provides as a software system. With over 400 licences issued on the African continent, we believe as an insurance company and provider of the state-of-the-art track, trace and efficacy solution will provide the insight required for better quality and global compliance and governance for offering premium African grown product globally," states Blue Anchor Risk's founder, Ildiko Richardson.

About Global Cannabis Applications Corp.

Global is a global leader in designing, developing, software-as-a-service licensing and acquiring innovative data technologies for the medical cannabis industry. The Citizen Green and Efixii platforms are the world's first end-to-end -- from patient to regulator -- medical cannabis data solutions. They use six core technologies: mobile applications, artificial intelligence, RegTech, smart databases, Ethereum blockchain and Global smart rewards. These technologies transparently disclose cannabis chain-of-custody events, thereby enabling patients to provide crowd-sourced medical cannabis efficacy data. Driven by digital and cannabis industry experts, Global is focused on generating revenue from SaaS licensing its technology and acquiring high-quality cannabis datasets that improve patient outcomes and to become the world's-largest cannabis efficacy data provider.

We seek Safe Harbor.

© 2024 Canjex Publishing Ltd. All rights reserved.