LOS ANGELES, May 5, 2020 /PRNewswire/ — Cannabis Global, Inc. (OTCMKTS: MCTC) (“Cannabis Global” or the “Company”), a cannabinoid and hemp extract science-forward company developing infusion and delivery technologies, is excited to announce the signing of a definitive, five-year agreement (the “Agreement”) for the production of cannabis edibles and beverages in conjunction with licensed California cannabis operator, Magnolia Extracts, LLC (“Magnolia”) of Lynwood, California.
Under the terms of the agreement, Cannabis Global will provide access to its trade secrets and patent pending technologies for chemical-free cannabis and hemp infusions in the production of tetrahydrocannabinol (THC) containing edibles and beverages.
“This deal represents an enormous escalation in terms of our positioning in the California cannabis edibles and beverages marketplace,” stated Arman Tabatabaei, CEO of Cannabis Global. “We will be working closely with Magnolia and look forward to a rapid path to market for these innovative products. We have strong reason to believe we will see a relatively quick expansion in distribution footprint given the prepotency of demand we are seeing among potential distribution partners already. The Magnolia site has recently been modified to our specifications and is now complete. We are looking forward to moving out of our initial stage of development and into full-scale production. This Agreement is a game-changing development with strong tangible implications for our performance this year.”
According to the leading cannabis research firm, ArcView, the market for cannabis edibles and beverages will hit $4.1 billion annually within the U.S. by next year, making the sub-sector the fastest growing area of the overall cannabis business sector. With the recent surge in cannabis sales related to the COVID-19 outbreak, cannabis marketers are seeing a significant increase in demand for edible products.
Management notes that this business expansion is separate and distinct from the Company’s other product initiatives already underway. The Company plans to continue with its hemp extract technologies and directly manufactured products in the areas of alcohol-replacement, hemp-extract coffee, exotic cannabinoid products, and hemp-extract natural and artificial sweeteners under the Hemp You Can Feel™ brand name.
Tabatabaei continued, “We are also seeing a significant number of avenues for deployment of our chemical-free infusion products within both the regulated THC portion of the business and within the market for hemp-based infusions. This includes what we believe are the industry’s first beverage products based on Tetrahydrocannabivarin (THC-V). In April, we announced the May launch of the first commercially available tea and coffee products based on THC-V. We are happy to report that interest has been exceptionally strong and that we are on target for May production for this potentially revolutionary product.”
About Cannabis Global, Inc.
Cannabis Global, Inc. (MCTC) is a Nevada registered, fully reporting and audited publicly-traded company. With the hemp and cannabis industries moving very quickly and with a growing number of market entrants, Cannabis Global plans to concentrate its efforts on the middle portions of the hemp and cannabis value chain. The Company plans to actively pursue R&D programs and productization for exotic cannabinoid isolation, bioenhancement of cannabinoids and polymeric solid nanoparticles and nanofibers for addition into consumer products and for dermal application. The Company was reorganized during June of 2019 and announced its intent to enter the fast-growing cannabis sector. The Company is headed and managed by a group of highly experienced cannabis industry pioneers and entrepreneurs.
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.