CannAmerica Brands Corps. has entered into a long-term licensing agreement (the “Agreement”) and brand partnership with Swiss Lux Products, Inc., (“Swiss Lux” or the “Licensee”). Under the Agreement, Swiss Lux will have use of the Company’s renowned Intellectual Property, Branding, and Formulation processes in exchange for a royalty on all sales of the Company’s products within Canada.
“CannAmerica is looking forward to our entry into the Canadian recreational market, as this agreement marks our first opportunity to bring our branded products to an entire nation” said Dan Anglin, CEO and Co-Founder of CannAmerica. “With Canada allowing for a multitude of finished products in the cannabis marketplace, CannAmerica is ready to introduce the Canadian cannabis consumer to products that have thus far been unavailable; we anticipate a vibrant response to our menu of offerings, and anticipate a positive response to our company’s dedication to high quality products.” Anglin continued, “Because Swiss Lux is only interested in collaborating with premium brands, this agreement provides them with the opportunity to utilize our supply chains and expertise as they develop and commercialize high-quality cannabis products for the recreational, cosmeceutical, edible, beverage, and medical markets.”
The terms of the Agreement include the following:
- the initial term of the Agreement will be for a period of 3 years;
- the Agreement provides for a license of the use of the Company’s intellectual property, for which the Licensee will pay the Company a royalty percentage on gross sales;
- the Licensee will purchase all un-infused consumable ingredients, packaging supplies, and branded hardware as per the direction of the Company;
- the Licensee will follow formulations and processes provided by the Company;
- during the first 180 days of the initial term, the Licensee will employ one full-time salesperson in Canada to promote, market, advertise, and sell the products subject to the Agreement; and
- the Agreement may be terminated in certain circumstances, including:
- applicable regulatory authorities rejecting or canceling the Agreement, determining that the Agreement is illegal or impermissible, or determining that the Agreement would require the Company to be registered as an owner of the Licensee;
- applicable federal authorities requiring the parties to cease performing under the Agreement or threatening enforcement against the parties in relation to the Agreement or to either party’s violation of federal law regarding cannabis;
- upon 120 days’ written notice by either party to the other party; or
- by either party within five days’ written notice to the other party, if the other party files a petition of bankruptcy or is adjudicated bankrupt.
The Agreement aligns with the Company’s goals to become an international player in the cannabis space and to expand into additional markets during 2019.
Additionally, the Company announced today that it has resolved to issue 1,250,000 new shares to certain directors, officers, and employees at a deemed price of $0.17 per share. The issuance of common shares is subject to the prior approval of the Canadian Securities Exchange. All common shares issued in connection with this issuance will be subject to a four month hold period under applicable Canadian securities laws.
CannAmerica is a U.S. marine veteran founded and operated portfolio of cannabis brands with licensing agreements in the states of Colorado, Nevada and Maryland. The Company aims to maximize the value of its brands by employing strong brand management teams, marketing and licensing the brands through various distribution channels, including dispensaries, wholesalers and distributors, in the United States and internationally.
For more information, please visit www.cannamericabrands.com.