- Acquisition of 100% of world-leading, automated pre-roll technology IP
- World-class, experienced team of automation experts joining Icanic
- Engineers have previously built technology for Tesla, Genentech and Johnson & Johnson, amongst others
- The technology offers unprecedented and industry leading scalability and immediate significant cost of goods (COGs) savings
- 100% of the Purchaser shares will be locked up until December 31st, 2021 followed by an escrow release schedule commencing with 25% of Purchaser Shares released on January 1st, 2022 and 25% Purchaser Shares released every 4 months thereafter.
VANCOUVER, British Columbia, Dec. 09, 2020 (GLOBE NEWSWIRE) — Icanic Brands Company, Inc. (CSE: ICAN, OTCQB: ICNAF) (“Icanic Brands” or the “Company”), a multi-state brand operator in California and Nevada, announced today that it has entered into a Letter of Intent (“LOI”) to acquire THC Engineering, LLC (“THC Engineering”), a company focused on building one of a kind automation technology in the rapidly expanding cannabis manufacturing industry.
“Technology has always been a key focus and one of the three pillars that allows Icanic to truly differentiate itself and target a superior gross margin profile,” said Brandon Kou, CEO of Icanic. “The opportunity to acquire THC Engineering and its world class team was something that we could simply not pass up. This agreement reinforces our commitment to technology by bringing on a team that has built one of a kind manufacturing equipment for the likes of Tesla, Genentech and Johnson & Johnson. The journey began when the Company set out to try and tackle a huge issue in the industry and with the successful creation and implementation of the automated pre roll technology, we are thrilled to welcome the THC Engineering team to the Icanic family. As we continue to build out our portfolio of technology that drives efficiency and increased margins, the THC Engineering team will be invaluable to our success.”
For over the past two years the Company has spent considerable time reviewing other existing pre-roll manufacturing technologies across the globe and visiting with several developers of systems currently under development and feel very confident that the IP being acquired as a result of this acquisition is in a class of its own in terms of its precision filling, manufacturing rate and ability to significantly immediately impact cost of goods.
“The partners at THC Engineering are excited about joining the Icanic team,” says THC Engineering CEO, Kenji Sytz. “Since the start of our relationship, Icanic has shown us their commitment to producing the highest quality products while being conscious of manufacturing costs. A couple of years ago, THC Engineering set out to revolutionize the way cannabis products are made by bringing advanced automation to the cannabis world. Icanic shares this vision and we look forward to our future with them.”
Under the terms of the LOI, in consideration for THC Engineering, Icanic will pay a consideration of $1,750,000 in Icanic Brands shares (“Purchaser Shares”). THC Engineering will also have the opportunity to earn additional Purchaser Shares through milestone earnouts as follows: (i) $500,000 of Purchaser Shares upon completion of milestone 1 (ii) $1.75M in Purchaser Shares upon completion of milestone 2 and (iii) $500,000 of Purchaser Shares upon completing of both milestones 1 and 2.
The Purchaser Shares will be locked up until December 31st, 2021 at which point the Company will receive 4 equal installments based on the following schedule:
- 25% on January 1st, 2022
- 25% on April 1st, 2022
- 25% on July 1st, 2022
- 25% on October 1st, 2022
About Icanic Brands Company, Inc.
Icanic Brands Company, Inc. is a leading cannabis branded products manufacturer based in California & Nevada, the largest and most competitive cannabis markets in the world. The company’s mission is to make cannabis safe and approachable – that starts with manufacturing high-quality products delivering consistent experiences.
For more information, please visit the company’s website at: www.icaninc.com.
About Ganja Gold
Ganja Gold, Inc., a wholly-owned subsidiary of Icanic Brands Company, Inc. (CSE: ICAN, OTCQB: ICNAF), is the premier brand of infused pre-rolls in the state. Ganja Gold focuses on using only the best available flower and concentrates with state of the art proprietary technology to create connoisseur level pre-rolls unseen in the marketplace. With our flagship Tarantula™, Ganja Gold continues to set the bar in quality and experience.
For more information about Ganja Gold, visit their website at www.ganjagold.com
ICANIC BRANDS COMPANY INC.
|Chief Executive Officer|
For further information about Icanic Brands, please contact the Company at:
The CSE does not accept responsibility for the adequacy or accuracy of this release.
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. The Canadian Securities Exchange has not in any way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
This news release may include forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required under the applicable laws.