Wildflower Closes King Extracts Purchase and Enters the California Cannabis Market
VANCOUVER, British Columbia, August 2, 2017: Wildflower Marijuana Inc. (CSE: SUN) (the "Company") has signed a formal agreement to acquire the King Extract brand (the “Agreement”), its trademarks, all proprietary formulations and certain equipment. King has been operating in California since 2016 and has established distribution channels. The King purchase gives Wildflower a platform to launch its products in the State of California through King’s existing distribution channels which includes one of the largest distributors in California with access to over 600 retail cannabis stores.
Wildflower is currently having its products tested in order to meet the California requirements for selling its products. Inventory has been ordered and a steady supply of quality, pesticide free oil has been sourced. Wildflower expects sales to commence in September. Agreements for the oil, production and distribution are currently being completed.
With a population of over 39 million, California has the 6th largest economy in the world and is the largest cannabis market. With the passing of proposition 64, California approved the legalization of recreational cannabis this past November. Wildflower’s expansion into California comes at an ideal time for the Company to gain brand awareness and market share prior to full legalization.
The Agreement provides that King will receive 500,000 common shares of Wildflower. Wildflower will also issue an additional 500,000 common shares if sales reach US$180,000 in any given month on or before April 30, 2018 and a further 500,000 common shares if sales increases at a minimum of 15% per month in the aggregate over the 6 months following the second share issuance. In addition, Wildflower will pay an amount equal to 50% of the net profits from the King business until the earlier of, (i) July 26, 2019; and (ii) Wildflower shares trading at price of CAN$1.25 or greater for 10 consecutive trading days. Any shares issued will be subject to a one year hold period from the date of issue provided King is still receiving its net profits, otherwise there will be a four month hold period from the date of issue. In addition, the Company has granted 250,000 stock options at a price of $0.50 per share for a period of five years. As part of the Agreement, Wildflower has entered into a consulting agreement with Eric Bava, King’s managing partner, to run all the California operations for Wildflower.
Wildflower CEO, William MacLean stated, “We are excited to launch into California. The size and depth of the market in California makes this a significant milestone for Wildflower. Gaining access prior to the legalization of recreational cannabis gives us a platform to build upon. Further, we are fortunate to have the vendors as partners in building out the King and Wildflower brands. As part of their commitment they have agreed to hold their stock for a year or until they have helped build the value of Wildflower as reflected in our stock price being at least CAN$1.25.”
About Wildflower Marijuana Inc.
Wildflower is a cannabis company focused on developing and designing branded cannabis products. Wildflower sells its CBD+ products online and to retailers throughout the US and also produces and markets its THC products in regulated cannabis jurisdictions.
On Behalf of the Board of Directors
Director and CEO
THIS NEWS RELEASE, PROVIDED PURSUANT TO APPLICABLE CANADIAN REQUIREMENTS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS ABSENT REGISTRATION OR APPLICABLE EXEMPTION FROM REGISTRATION REQUIREMENTS.
Cautionary and Forward-Looking Statements
This news release contains forward‐looking statements and forward‐looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward‐looking statements or information. Forward‐looking statements and information are often, but not always, identified by the use of words such as "appear", "seek", "anticipate", "plan", "continue", "estimate", "approximate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions.
Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward‐looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the marijuana industry in general such as operational risks in growing; competition; incorrect assessment of the value and potential benefits of various transactions; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals and changes in legislation, including but not limited to tax laws and government regulations. Accordingly, readers should not place undue reliance on the forward‐looking statements, timelines and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive.
The forward‐looking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forward‐looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws or the Canadian Securities Exchange. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.
The Canadian Securities Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this press release.