LOS ANGELES, Sept. 22, 2020 /PRNewswire/ — InvestorsHub NewsWire — Cannabis Global, Inc. (OTC: CBGL) (“Cannabis Global” or the “Company”), a cannabinoid and hemp extract science-forward company developing infusion and delivery technologies, is pleased to provide shareholders with more details following the Company’s recent 18.8% strategic investment stake in Natural Plant Extract (NPE), which operates a licensed cannabis manufacturing and distribution business out of Lynwood, California, holding a Type 7 California Manufacturing and distribution license, allowing for cannabis product distribution anywhere in the state.
Through this newly formed strategic relationship, the management teams of NPE and Cannabis Global are already collaborating on multiple levels, including the integration of several of the Company’s technologies in products manufactured by NPE and distributed by NPE’s distribution division, Northern Lights Distribution. In addition, the Company anticipates additional synergies on production costs, IP, and logistics.
“Aside from the direct positive balance sheet impact, which we will outline in our upcoming fiscal year end filing with the SEC, we acquired the stake in NPE for the strategic importance to our future business,” commented Arman Tabatabaei, CEO of Cannabis Global. “There are multiple synergies between our internally developed technologies and the cannabis market sectors targeted by NPE and its business partners. We believe the recent acquisition and the growing relationship between the management teams will create opportunities to lower our manufacturing costs, provide important distribution channels for our unique product lines, and offer our Company multiple licensing opportunities.”
At the Lynwood property, NPE plans to finish the build-out of a full scale, state-of-the-art cannabis extraction and product manufacturing facility under the consulting direction of Irvine based industry leader, Abstrax Tech, which is expected to be completed in Q1 2021. These products and products manufactured by other companies will then be distributed to retailers throughout California via Northern Lights Distribution. Besides extracted product inputs and finished products to be sold to consumers, the Cannabis Global team will also have access to a state-of-the-art portfolio of botanically derived and cannabis-inspired terpenes.
Cannabis Global also expects cost synergies from its strategic relationship with NPE, which is currently building a state-of-the-art cannabis extraction lab that will focus on making premium concentrates. This relationship will allow for vertical integration for the Company, potentially for NPE and Northern Lights Distribution. Each of these partners will have a strong incentive to provide the best products and services to the others, allowing for reduced costs and better products to be designed, manufactured, and distributed to California Cannabis consumers.
Natural Plant Extract has assembled an impressive leadership team headed by cannabis industry veterans Jeff Dimon and Ryan Johnson.
Mr. Tabatabaei added, “As a growing company that’s relatively new to the cannabis marketplace, it is exciting for us to be working with this experienced management team. Jeff has extensive business leadership, marketing, and branding experience, while Ryan has one of the best sets of cannabis sales capabilities possible. NPE has also assembled equally capable advisors and investors, led by a highly successful California land developer, entrepreneur, and philanthropist who has recently acquired the Lynwood property and a 40% ownership stake in NPE. Marketing Expert and Business Consultant, Jim Riley also comes on-board to round out the experience of the team. We strongly believe this a near-optimal set of partners for Cannabis Global.”
For full details on the investment made by Cannabis Global., Inc. into Natural Plant Extract, please reference the Company’s recent filing with the U.S. Securities & Exchange Commission.
The filing can be accessed this the following link: https://www.sec.gov/Archives/edgar/data/1413488/000107997320000764/cbgl_8k.htm
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 cannabinoid sciences and highly bioavailable hemp and cannabis infusion technologies. The Company has an actively growing portfolio of cannabis investments and intellectual property, having filed six provisional patents relative to 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 develop products based on this and other rare cannabinoids.
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.