LOS ANGELES, CA / ACCESSWIRE / May 13, 2021 / Cannabis Global, Inc. (OTC PINK:CBGL) and Marijuana Company of America (OTC PINK:MCOA) today announced the closing of a definitive agreement establishing a new manufacturing and research center for advanced cannabis concentrates, cannabinoid polymeric nanoparticles and nanofibers. The joint venture, operating under the name MCOA Lynwood Services, Inc, will be managed from Natural Plant Extracts of California (NPE) in its Lynwood, California location. Cannabis Global is majority owner of Natural Plant Extracts, holder of a Type 7 cannabis manufacturing permit.
The new venture will immediately focus on the production of cannabis concentrates, which will be processed at the licensed NPE facility and will continue the research and development of Cannabis Global polymeric nanoparticle technologies, for which patent applications were filed late last year. Cannabis concentrates will be sold into the regulated California market and will be used within the Company’s upcoming products.
“We see numerous benefits to the joint venture,” commented Arman Tabatabaei, CEO of Cannabis Global. “Cannabis concentrates are one of the fastest growing areas of the regulated cannabis market and the pursuit is natural considering our recently renewed Type 7 license for volatile extraction, the licensing of which is strictly limited by The State of California. We also see powerful vertical integration and cost savings by being able to produce our own inputs to be added to our own brands. These cost savings will be further amplified by sending our finished products through our own distribution company and license – Northern Lights Distribution.”
Under the terms of the joint venture, MCOA will contribute capital and leases on production equipment to be used as the means of production. Cannabis Global will own 60% of the joint venture, allowing full consolidation of the revenues of the JV, while MCOA will own 40%. The Companies will each appoint two individuals to the new JV board of directors.
Last year, according to data published by MJBizDaily, the cannabis concentrate product category was up by more than 40%, representing one of the fast growing cannabis sub-categories. Pricing of products in the category also rose last year by five percent, primarily driven by increased demand as consumers continued to move away from vape products due to health concerns and as consumers in mature markets, such as Los Angeles, are increasingly demanding more potent cannabis products.
Cannabis Global also plans to continue its research and development programs relating to cannabinoid polymeric nano technologies and to support its patent applications via the new joint venture operations. During 2019 and 2020, Cannabis Global filed six provisional patents and three non-provisional patent applications on various cannabis technology, including unique polymeric nanoparticles and fibers for use in oral and dermal cannabinoid delivery.
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 the area of cannabinoid sciences and highly bioavailable hemp and cannabis infusion technologies. The Company does not engage in the production, distribution, or sales of any controlled substances, including marijuana. The Company has an actively growing portfolio of intellectual property having filed six patents in 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 to develop products based on this cannabinoid.
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.
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SOURCE: Cannabis Global, Inc.
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