Mr. Brian Kalish reports
MEDIACENTRAL SIGNS LETTER OF INTENT TO ACQUIRE BUDTREE.COM
Media Central Corporation Inc. has entered into a binding letter of intent to acquire Budtree Corp.
Established in 2016, Budtree is a dynamic on-line hub for vendors, merchants, customers and connoisseurs of cannabis. Budtree offers a safe and secure directory and marketplace for cannabis enthusiasts to uncover new products in both the medical and recreational market. Budtree has invested nearly $2-million in its proprietary Web platform. Through this acquisition, Media Central will be able to leverage this platform to expose its 6.5 million readers to the rapidly emerging on-line cannabis and cannabidiol market, and open new avenues of monetization for the company.
"Acquiring Budtree.com is a natural extension to our business model for Canncentral.com," said Brian Kalish, chief executive officer of Media Central. "This opens up an immediate revenue-generating opportunity to merge Canncentral's daily enthusiastic cannabis readers directly with an established e-commerce platform. With this acquisition, our loyal readers will be able to easily purchase the cannabis products they are learning about on our site."
The latest planned acquisition of Budtree follows Media Central's aggressive strategy to create and acquire a strong portfolio of brands with a like-minded audience to consolidate an audience of 100 million, unifying a powerful demographic through cutting-edge content, events, social media and programmatic advertising. Budtree will join Vancouver's Georgia Straight, Toronto's Now Magazine, Canncentral and ECentralSports as brands under the Media Central umbrella.
"We have always wanted to offer our consumers a safe and secure way to access cannabis products. Now, with Canncentral, we will be able to leverage award-winning writers and content producers to showcase and educate consumers on our diverse product. We are aligned with the vision Media Central sees for Budtree and are excited for the next phase of our company," said Ray Rasouli, CEO of Budtree.
Subject to completion of due diligence, audit and regulatory approvals, the company and Budtree will enter into a definitive agreement for the acquisition by way of a share exchange, which will result in Budtree becoming a wholly owned subsidiary of Media Central. On closing, Media Central will issue 85,451,521 shares to the shareholders of Budtree.
Additionally, the company will complete a $1-million private placement at a price of 3.3 cents, with Media Central responsible for 50 per cent of the private placement and Budtree responsible for the remaining 50 per cent portion of the private placement. A senior member of the Budtree team will join Media Central's board of directors following the closing of the transaction.
The LOI follows Media Central's recent announcement regarding its intent to enter the e-commerce market with a hemp-based CBD product shop connected to Canncentral as a strategic move to introduce new revenue streams to the company.
About Media Central Corporation Inc.
Media Central is an alternative media company situated to acquire and develop high-quality publishing assets starting with the recent acquisition of Vancouver Free Press Corp., the purchase of Now Communications Inc., and the launch of digital cannabis platform Canncentral and e-sports outlet ECentralSports.
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