16:28:33 EDT Thu 17 Jun 2021
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Maple Leaf Green World Inc
Symbol MGW
Shares Issued 161,355,398
Close 2021-02-24 C$ 0.085
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Maple Leaf Green hires Hempacco to make CBG cigarettes

2021-02-24 12:40 ET - News Release

Mr. Raymond Lai reports


Maple Leaf Green World Inc. has signed an agreement with Hempacco Co. Inc., a vertically integrated California-based hemp cannabidiol, cannabigerol research and development, marketing, and manufacturing company, to develop, manufacture and market its new brand of CBG hemp cigarettes.

The agreement aims to develop a new CBG hemp cigarette brand for Maple Leaf using its California-grown hemp. Hempacco will handle all of the research, development and manufacturing of a retail-ready 20-pack CBG-rich hemp cigarette brand.

"I'm excited to work with Hempacco to develop our brand of CBG hemp cigarettes; this is a pivot for our company after identifying the growing hemp cigarette space and the market opportunity not only in the U.S., but also in Canada and internationally," said Raymond Lai, chief executive officer of Maple Leaf. "Our CBG farm is minutes away from Hempacco's manufacturing location, which makes it an amazing opportunity to have our own seed-to-shelve product and deliver an incredible hemp smokable quality experience to the consumer," Mr. Lai concluded.

"It's been a pleasure working with Raymond and his team to launch Maple Leaf's new CBG brand in our quest to disrupt tobacco," said Sandro Piancone, CEO of Hempacco. "We're committed to a fast launch of the CBG hemp cigarette brand and following it up with an e-commerce portal that integrates picking, packing and shipping all from one location close to the Maple Leaf's farm," Mr. Piancone concluded.

The hemp cigarette private-label manufacturing agreement is for five years and consists of two phases. The first phase is hemp cigarette product development, including research and development, business modelling, and hemp cigarette white-label manufacturing subphases. Hempacco will undertake all the necessary work for the three subphases, including packaging and shipping, where Maple Leaf supplies raw hemp material. Maple Leaf and Hempacco will jointly develop branding and packaging artwork that Hempacco will manufacture. The second phase is to establish an e-commerce strategy, which will expand Maple Leaf's on-line and social media presence by developing a full e-commerce platform. Through the company's new hemp cigarette on-line store, CBG hemp cigarettes, packaged flower jars and subsequent product developments will be available for purchase, and shipped across the United States and overseas. Both phases will commence immediately.

Hempacco will invest in the brand by paying for all the initial start-up costs associated with both phases. Maple Leaf will contribute to the manufacturing and order processing cost when sales are made. As compensation for Hempacco's services, Maple Leaf will pay Hempacco two million common shares at 7.5 cents per share for phase 1 and one million common shares at 7.5 cents per share for phase 2, provided that both phases are completed within 45 days after the agreement date and accepted by Maple Leaf. The issuance of three million common shares is subject to Maple Leaf's broad of directors and NEO Stock Exchange's approval.

The agreement will leverage Hempacco's fully integrated supply chain to manufacture, package, market and distribute Maple Leaf's CBG hemp cigarettes as well as leveraging Maple Leaf's digital branding artwork, expertise in cultivating high-quality, organic CBG hemp, and its role as a gateway for penetrating international markets. By utilizing the resources from both Maple Leaf and Hempacco, the agreement will disrupt the cigarette industry by providing a naturally great-tasting alternative to traditional tobacco and nicotine cigarettes. Hemp cigarettes are also a great alternative to marijuana by offering the non-psychoactive effects caused by tetrahydrocannabinol with the added benefits of CBG.

Update of previous sales letter of intent

The company has cancelled the previously announced letter of intent from CannaTrading Co. and Emco/Hanover Group. CannaTrading has permanently closed and the special pricing offer to Emco/Hanover has expired.

The company believes that hemp cigarettes are one of the fastest-growing segments of the hemp industry and will generate higher sales volume and profit margins for the company; as such, it will allocate most of its inventory to capitalize on this trend.

About Maple Leaf Green World Inc.

Maple Leaf is a Canadian company that focuses on the cannabis and hemp industry in North America. The company currently has cannabis and hemp projects in British Columbia and California. With over 10 years of extensive greenhouse management experience, the company applies its eco-agriculture knowledge and cultivation technology to produce contaminant-free cannabis products. Maple Leaf's long-term objective is to produce cannabis oil and to export its products to approved countries.

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