ESCONDIDO, CA / ACCESSWIRE / May 13, 2021 / Marijuana Company of America, Inc. (OTC PINK:MCOA) and Cannabis Global, Inc. (OTC PINK:CBGL) 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 an entity named, MCOA Lynwood Services, Inc, will be managed by Natural Plant Extracts of California (NPE) at 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.
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, while MCOA will own 40%. The Companies will each appoint two individuals to the new JV's board of directors.
Jesus M. Quintero, CEO of MCOA stated, "We firmly believe that with the capital resources that MCOA will be providing in order for the new venture to procure equipment and start up expenses, we will be able to recognize additional reoccurring revenue immediately prior to the upside potential that will come with shared profits. Both companies share a strong entrepreneurial spirit and we look forward to the opportunity in which this brings for our shareholders and the important role it plays in our overall strategy of empowering consumers to take health and wellness into their own hands."
"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."
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 this newly created joint venture operations. During 2019 and 2020, Cannabis Global filed six provisional patents and three non-provisional patent applications on various cannabis technologies, including unique polymeric nanoparticles and fibers for use in oral and dermal cannabinoid delivery.
About Marijuana Company of America Inc.
Marijuana Company of America Inc. is a diversified holding company with wholly owned subsidiaries and financial investments in various private and publicly traded companies across the Cannabis industry emerging company offering unique exposure to the global cannabis sector. Marijuana Company of America Inc. (MCOA) changed its strategy in 2020 and focused on acquisitions, as well as its sales & marketing efforts of MCOA's wholly owned hempsmart™ premium brand of hemp-based CBD (legal cannabidiol) products both domestically and internationally. Strategic decisions and long-range planning have also led the company to pivot away from farming and focus on supplying the cannabis industry across an ever-expanding market landscape.
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.
Legal Status of Cannabis
While legalized in California for recreational and medicinal use, cannabis remains a Schedule 1 drug under the Controlled Substances Act (21 U.S.C. § 811) and illegal under the federal law.
Forward-Looking Statements
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.marijuanacompanyofamerica.com or visit www.sec.gov.
Contact
info@marijuanacompanyofamerica.com
info@mcoainvestments.com
888-777-4362
SOURCE: Marijuana Company of America, Inc.
View source version on accesswire.com:
https://www.accesswire.com/647128/Marijuana-Company-of-America-and-Cannabis-Global-Reach-Definitive-Agreement-Establishing-Advanced-Cannabis-Concentrate-and-Nanoparticle-Manufacturing-Laboratory
