Cannabis branding company, CannAmerica, just announced a merger with SERICEA Labs S.A. de C.V. and CBDistribution Company to build a new facility in Mexico.
On March 12, 2019, CannaAmerica entered into a binding letter of intent with SERICEA Labs and CBDistribution Company, creating a joint venture brand to cultivate, extract, and import licensed CBD products, CBD oils, and CBD isolates. The CannAmerica Sericea deal, is subject to board approval from both companies and must be in compliance with Mexican laws.
Headquartered in Vancouver, Canada, CannAmerica provides opportunities for growth and development to licensed cannabis business around the world by allowing them to manufacture and distribute quality products under the CannAmerica brand. It’s a veteran owned and operated company whose initial goal was to craft a socially responsible cannabis gummy – with high standards for affordability, effectiveness, flavor, and reliability – one that can never be mistaken for a regular candy.
Each of the joint venture parties are expected to receive the following portions of shares:
- 40% to SERICEA Labs “in exchange for performing all necessary steps in obtaining the applicable licenses in Mexico represented in the joint venture for: (i) importing and warehousing licensed products (as well as CBD oils and tinctures) destined for refining; (ii) cultivation; and (iii) acquiring, importing and cultivating hemp biomass for extraction of CBD;”
- 40% to CannAmerica “in exchange for contributing operational expertise, sourcing the property, providing equipment for refining and extracting product, providing exclusive licenses for products destined to the Mexican market and establishing a written intellectual property licensing agreement of use exclusive to the JV (joint venture) for all current and future technology for oil extraction within the country of Mexico; and,”
- 20% to CBDistribution Company “in exchange for sourcing of hemp biomass, branding, marketing and the sale of the finished product, including but not limited to CBD isolate in bulk.”
Additionally, CannAmerica agrees to issue the shareholders of SERICEA equal shares at $2,000,000 a piece when the joint venture company’s cumulative gross sales of all products combined exceeds $5,000,000 USD. This contribution will be made on the exact date the merger receives its Single Cannabis Registry in Mexico.
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“We are very pleased to enter the Latin American region with our partners in Mexico. This marks an exciting step for our brand’s expansion in the international CBD marketplace,” said Dan Anglin, CEO and Co-Founder of CannAmerica. “Coupled with our partnership in Europe, global distribution of CannAmerica products is our key focus in 2019.”
“SERICEA Labs welcomes the opportunity to enter into this LOI (letter of intent) that will help pave the way for CannAmerica CBD licensed products to enter into the emerging Mexican cannabis market, with the same quality and processing standards expected by their customers”, stated SERICEA Labs’ Board of Directors.
For more information on this specific agreement, please visit www.cannamericabrands.com. To learn more about other cannabis industry deals and business developments, make sure to subscribe to our Weekly Newsletter, the top source for all cannabis-related news and information.