Cannabis Global, Active Health Foods, Inc., and Massachusetts Based The Hub Craft, LLC Enter Non-Binding Letter of Intent to Develop California Cannabis MSO
LOS ANGELES, CA / ACCESSWIRE / January 4, 2022 /Cannabis Global, Inc. (OTC PINK:CBGL) (the "Company"), today announced the signing of a non-binding letter of intent to create a joint venture, that also includes an option to acquire a controlling interest in The Hub Craft, a licensed and permitted Massachusetts cannabis business operator, who is in the process of building extensive cannabis cultivation, manufacturing, and retail capabilities.
Under the terms of the proposed joint venture, the Company, Hub Craft, and Active Health Foods, Inc. (OTC PINK:AHFD) will form a California corporation to enter the California cannabis marketplace. In addition to being granted exclusive licenses on all Hub Craft products, branding, and associated technologies for the State of California, the joint venture will be provided an option to purchase a 51% controlling position in Hub Craft anytime within nine months of the effective date of the joint venture for a price of $15 million.
Active Health and Cannabis Global are interested in The Hub Craft for additional reasons beyond its products and brands. While many states, such as California and Oregon, are seeing massive overproduction of cannabis, the Massachusetts market is only in its early stages. Generally speaking, while cannabis prices on the West Coast have dropped dramatically, prices in the Massachusetts markets have remained remarkably robust. Cultivation licenses in the State of Massachusetts are limited to a maximum of 100,000 square feet, which the Company believes will prevent the much larger cannabis industry players from dominating the Massachusetts marketplace. Additionally, all three companies see a massive population in the Massachusetts area that is primed to become avid legal cannabis consumers. While the population of Massachusetts is only approximately seven million, there are an additional approximately 25 million in the neighboring states of New York, Connecticut, and Vermont who have no or limited access to legal recreational cannabis. The Companies believe these approximately 32 million residents represent the second largest cannabis market in the United States outside of California.
"We are particularly impressed with the robust technologies The Hub Craft is introducing to the marketplace and we feel these will be well received in the mature California markets in the Los Angeles and San Francisco metro areas," commented Arman Tabatabaei, CEO of Cannabis Global. "We are looking forward to collaborating with both the management teams of Hub Craft and Active Health Foods to create a unique set of assets to serve the significantly sized California marketplace."
While the executives of all three companies have agreed to the proposed initial terms of the joint venture to address the California market as outlined in the non-binding letter of intent, no definitive agreement has been signed. Moreover, there are still a considerable number of details to be worked out before the companies would be able to finalize an agreement. Thus, there can be no assurance a transaction as contemplated will ultimately take place.
Mr. Glen Bonilla, CEO of Active Health Foods, commented, "The Hub Craft has a top-flight management team, and the Company is fully licensed and is launching operations in what we expect to be one the hottest North American cannabis markets. This joint venture will allow Active Health to enter the California marketplace with market-ready brands, formulations, and, most importantly, stellar management team members. Over the coming weeks, we plan to work diligently to finalize a definitive agreement for this joint venture for the benefit of all shareholders."
About Cannabis Global, Inc.
Cannabis Global, Inc. is a Los Angeles-based, fully audited, and reporting Company with the U.S. Securities & Exchange Commission, trading under the stock symbol CBGL. We are an emerging force in the cannabis marketplace with a growing product and proprietary intellectual property portfolio. We are marketing and producing Comply Bag™, an innovative solution for cannabis storage, transport, and tracking. Our subsidiary, Natural Plant Extract (NPE), is a Southern California licensed cannabis manufacturer and distributor which licenses our technologies to produce edibles for the cannabis marketplace. Cannabis Global has filed three non-provisional and multiple provisional patents for cannabis infusion and nanoparticle technologies and continues an active research & development program.
About Active Health Foods
Active Health Foods recently acquired CoinChamp, Inc., and the operations of CoinChamp now represent the operations of the entire Company. CoinChamp is developing a platform for the plug-and-play creation of non-fungible tokens. More details will be disclosed in the near future. Glen Bonilla, President, and CEO, is an experienced serial entrepreneur with an extensive banking background, years of managerial experience, and a fresh vision as a tech-savvy millennial CEO.
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SOURCE: Cannabis Global, Inc
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