LOS ANGELES, CA / ACCESSWIRE / February 2, 2021 / Cannabis Global, Inc. (OTC PINK:CBGL), an innovation-oriented company investing in and growing operations in disruptive areas of the cannabis and hemp-related industries, today announces it has increased its ownership stake in Natural Plant Extract of California, Inc. (“NPE”), which operates a licensed cannabis manufacturing and distribution business operation in Lynwood, California. NPE owns a Type 7 California Manufacturing License as well as a California Distribution license. Under the terms of the agreement, which closed on January 27, 2021, the Company is purchasing an additional (18.8%) of Natural Plant Extract’s outstanding capital stock, bringing its full ownership position to approximately 37.6%. In exchange for the 18.8% ownership, the Company will issue approximately 11.4 million restricted shares to the seller, which cannot be sold for one year, unless a registration statement is filed and effective covering the shares. Cannabis Global plans to assist in the operations of NPE and work with the NPE team on synergistic cannabis distribution and product manufacturing opportunities.
“We have expanded our ownership position in NPE as we believe it has a potent mix of upcoming product offerings and an exceptional management team headed by cannabis industry veterans with extensive business leadership, marketing, and branding experience. We see strong synergies with this management team and business model moving forward,” commented Arman Tabatabaei, CEO of Cannabis Global.
NPE has also assembled capable advisors and investors, led by a highly successful high net worth California land developer, entrepreneur, and philanthropist who has recently acquired the Lynwood property and a substantial ownership stake in NPE. Marketing expert and business consultant Jim Riley also comes on-board to round out the experience of the team. Jim is also an independent Board member of Cannabis Global and will be taking the lead to help oversee the investment on behalf of the Company.
NPE and the Company plan to finish the build-out of a full-scale, state-of-the-art cannabis extraction and product manufacturing facility, scheduled to be completed during the first half of 2021. The products manufactured at the Lynwood site, and products manufactured by other companies, will then be distributed to retailers throughout California via Northern Lights Distribution, a subsidiary of NPE. Aside from the extracted product inputs and finished consumer products, the Cannabis Global team will also have access to a state-of-the-art portfolio of botanically derived and cannabis-inspired terpenes.
About Cannabis Global, Inc.
Cannabis Global, Inc., formerly known as MCTC Holdings, Inc., is a fully audited and reporting Company with the U.S. Securities & Exchange Commission, trading with the stock symbol CBGL. The Company is an emerging force in the area of cannabinoid sciences and highly bioavailable hemp and cannabis infusion technologies. The Company does not engage in the production, distribution, or sales of any controlled substances, including marijuana. The Company has an actively growing portfolio of intellectual property having filed six patents in the areas of cannabinoid delivery systems and cannabinoid polymeric nanoparticles. The Company markets its consumer products under the Hemp You Can Feel™ brand name. Cannabis Global launched its Project Varin early in 2020, to develop new delivery methods for rare cannabinoid Tetrahydrocannabivarin (THV-C) and to develop products based on this cannabinoid.
This news release contains “forward-looking statements” which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as “anticipate”, “seek”, intend”, “believe”, “estimate”, “expect”, “project”, “plan”, or similar phrases may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company’s reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-k, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission. For more information, please visit www.sec.gov
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SOURCE: Cannabis Global, Inc.
Originally published February 2, 2021, 2:00 PM