VANCOUVER, March 22, 2019 – CANNAMERICA BRANDS CORP. (CANA” or the “Company”) (CSE: CANA) (OTCQB: CNNXF) is pleased to announce that on March 14, 2019 it had entered into a binding letter of intent (“LOI”) with THC, Inc. (“THC”) under which THC will have an exclusive license to manufacture and distribute CannAmerica branded cannabis infused gummy products, other edible products, vape products, droppers, capsules, beverages, shatter and wax concentrate product the “Licensed Products”) in Oklahoma.
Terms of the LOI are as follows:
The initial term of the license agreement will be for a period of 1 year and, upon mutual agreement, will be renewable for successive one year periods.
Net price payable from THC to Company will be determined by a per package/unit fee relating to CannAmerica products that THC decides to produce.
THC also agrees to pay the Company a license fee to manufacture and distribute the Company’s
THC will purchase all un-infused consumable ingredients, packaging supplies, and branded hardware exclusively from the Company;
THC will follow formulations and processes provided by the Company;
During the first 180 days of the Initial Term, THC is expected to employ two full-time sales people to exclusively promote, market, advertise and sell Licensed Products; Subject to Board approval from the Company and completion of satisfactory due diligence, the parties intend to enter into a Definitive Agreement on or before May 1, 2019. “The Company looks forward to the opportunities an agreement with THC Inc offer to introduce the brand into Oklahoma and the Southern United States,” said Dan Anglin, CEO and Co-Founder of CannAmerica.
“The prospect of expanding our products into Oklahoma’s newly created cannabis marketplace and increasing awareness of our brand and product lines in the Southern United States is a step forward to reaching the Company’s growth goals for 2019 and providing more legal-age Americans in the Southern United States access to our quality products.” For more information, please visit www.cannamericabrands.com.