Ms. Penny White reports
YIELD GROWTH SUBSIDIARY YIELD BOTANICALS SIGNS LOI TO ACQUIRE CANNIVA CAPITAL AND ENTER EUROPEAN CBD MARKET
On Dec. 2, 2019, The Yield Growth Corp.'s subsidiary Yield Botanicals Inc. entered into a non-binding letter of intent to acquire Canniva Capital Inc., which is developing cannabidiol assets in Europe.
Yield Growth's wholly owned subsidiary Yield Botanicals has a planned business to create a hemp extraction facility in Oregon to produce CBD from organically grown hemp. The proposed terms of the acquisition are that Yield Botanicals will acquire all the outstanding and issued shares of Canniva by issuing one share and one warrant in Yield Botanicals to acquire each share of Canniva. The proposed acquisition is subject to Canniva raising $1-million at 10 cents per share. Once the acquisition is complete, Yield Botanicals has an obligation to go public and obtain a stock exchange listing either by initial public offering or by reverse merger with a listed company within six months. Upon listing Yield Growth is expected to own 50 million shares and 70 per cent of the listed entity.
"This plan to acquire Canniva Capital and take the resulting issuer Canniva Botanicals public as a partially owned subsidiary is part of Yield Growth's intention to build long-term value for our shareholders by building our subsidiaries, financing them and taking them public with independent management teams," says Yield Growth chief executive officer Penny White. "Canniva Botanicals will provide a reliable source of high-quality organically sourced CBD for our CBD products."
The acquisition of Canniva Botanicals secures for Yield Growth a source of CBD which it will infuse in its Ayurvedic inspired wellness products. Yield Growth recently signed an agreement for distribution of its line of Wright & Well CBD therapeutic products in Greece and Cyprus and plans to continue to grow its distribution network throughout Europe, which the company sees as an important emerging CBD market.
According to a recent report by Brightfield Group, Europe's CBD market is expected to grow 400 per cent over four years and be worth an estimated $1.7-billion by 2023. The report suggests that, thus far, the European Union has experienced less explosive cannabis market growth than the United States due to the complex and widely varying cannabis regulations in each individual country. That is subject to change, however, due in part to recommendations from the World Health Organization to reschedule cannabis, and a vote in 2019 by European Parliament to increase EU nations' access to medical marijuana and conduct more research on its public health effects.
About The Yield Growth Corp.
Yield Growth is developing and selling hemp, marijuana and edible mushroom products in what the Global Wellness Institute reports is a $4.2-trillion global wellness market. It owns the cannabis wellness brands Urban Juve, Wright & Well, and Jack n Jane. The Yield Growth management team has deep experience with global brands including Johnson & Johnson, Procter & Gamble, M.A.C Cosmetics, Skechers and Aritzia. Its all-natural hemp skin care brand, Urban Juve, has signed distribution agreements in Canada, Colombia, Brazil, Costa Rica, Panama, Argentina, El Salvador, Ecuador, Peru, Greece, Cyprus, Bulgaria, Romania and Serbia.
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