Cannabis Global and Marijuana Company of America Announce Intention to Form Joint Venture to Open Cannabis Extraction Lab
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LOS ANGELES, CA / ACCESSWIRE / May 4, 2021 / Cannabis Global, Inc. (OTC PINK:CBGL) and Marijuana Company of America (OTC PINK:MCOA) today revealed plans to create, finance and operate a new cannabis laboratory in Lynwood, CA. The laboratory will be operated by Cannabis Global's subsidiary, Natural Plant Extract of California ("NPE"), under its Type 7 cannabis manufacturing permit.
Under the terms outlined in the recently signed letter of intent, MCOA will commit $250,000 to the project of which $135,000 will be utilized to purchase extraction and other production equipment. NPE will manage the laboratory and manufacturing operations with both MCOA and CBGL personnel providing consulting and business management services. The laboratory will concentrate on volatile extraction of cannabis concentrates for sale into the marketplace by CBGL, and for use in internally produced consumer products.
Cannabis Global CEO Arman Tabatabei commented, "This new venture is about using technical know-how to create corporate synergies. By producing cannabis concentrates in house we will not only be able to enter one of the hottest cannabis consumer markets, but also lower our costs by producing concentrates for our own brands, rather than purchasing from outside. We look forward to working even more closely with the team at MCOA."
The State of California limits the issuances of Type 7 permits for production of cannabis extracts utilizing volatile substances. NPE has invested heavily in the expensive building safety and environmental retrofits required for Type 7 permitting and recently renewed its permit for this type of cannabis extraction. This venture will allow both NPE and MCOA to take advantage of this opportunity.
Under the terms of the letter of intent, the parties agreed to work toward a final agreement, which will outline profit sharing between the Companies and timeframes for implementation.
Jesus Quintero, CEO of MCOA added, "MCOA welcomes the opportunity to work with CBGL to produce these cannabis concentrates, which are growing in popularity. While our role will be limited to investment and business consulting for the project, we are certainly excited about sharing in the potential profits from sales of cannabis concentrates and other products related. We look forward to organizing this venture with Cannabis Global and Natural Plant Extract."
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, and are the developer and marketer of the Hemp You Can Feel" brand. 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.
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.
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