In a continued bid to focus on its hempSMART™ products, the Marijuana Company of America Inc. (OTCQB: MCOA), has announced plans to collaborate with Cannabis Global, Inc. (OTC: CBGL) in a move designed to bring a range of CBD beverages to market.
The deal will see Marijuana Company of America make a strategic investment in Cannabis Global, a cannabinoid and hemp extract science company developing infusion and delivery technologies. The transaction is designed to integrate two complementary businesses in the growing CBD sector.
As part of the strategic investment, both companies are seeking to fully leverage their respective resources in response to the diverse market demand for their products.
According to Jesus M. Quintero, CEO of MCOA, “We are excited about this strategic partnership and will leverage the strengths of MCOA’s sales & marketing expertise and CBGL’s ability to manufacture CBD infused products. This will serve us well as we anticipate launching our first ever Hempsmart™ Private label brand CBD infused beverage line and launching worldwide. This deal makes strategic sense and demonstrates the intrinsic value of our business, our vision and future.”
“As we have continued to communicate, MCOA remains committed to implementing the strategic decisions focusing on hempSMART CBD products in core markets, new markets, as well as moving forward on our international strategy. With this transaction we have an even clearer near-term path to exponential growth and profitability and meeting our objectives.”
Cannabis Global has an actively growing portfolio of cannabis investments and intellectual property, having filed six provisional patents relative to the areas of cannabinoid delivery systems and cannabinoid polymeric nanoparticles. The company operates the successful U.S. CBD brand Hemp You Can Feel.
As part of the agreement, MCOA and CBGL have agreed to a share exchange arrangement, in which both parties received $650,000 in value of shares from each respective Company. The transaction does not involve any cash payments.
MOCA announced the launch of two new subsidiaries at the start of October, MR Hemp Brazil and MR Hemp Uruguay, to bring for the first time the Company’s hemp-based hempSMART™ premium quality product line to the South American markets of Brazil and Uruguay.
The joint venture with MR Hemp Brazil and MR Hemp Uruguay includes production and distribution opportunities which will further drive MCOA’s expansion globally and provide the company with the ability to distribute its CBD and hemp-derived hempSMART™ products in Brazil, a country with a population of over 212 million consumers that has seen a recent surge in CBD popularity and sales.
According to Quintero, “These specific joint ventures signify our diversified Cannabis business and will unlock the value of our hemp based quality CBD products into markets that have not fallen victim to market saturation. We are confident that we can act as a positive innovator in these markets with our proven team of local prominent business strategic partners and by offering effective pricing that should have a major positive impact on our future revenues. This has been part of our overall strategy since the new Management team began operating the MCOA business. This represents more efforts to provide our shareholders with greater value by offering the Company greater economic flexibility with respect to manufacturing and global distribution of hempSMART™ products, increasing sales, and by reaching an international audience of consumers in need of quality CBD products at good prices.”
Source | Marijuana Company of America