ORIGINAL: Weekend Unlimited Finalizes Acquisition of 80% Of Canna Candys, Canna Medibles
2018-11-22 03:05 ET - News Release
Leading the Southern California Market in the Category, Canna Candys is now Poised for Rapid Expansion in US, Europe and Asia as a Weekend Unlimited Brand
VANCOUVER, BC / ACCESSWIRE / November 22,2018 / WeekendUnlimited Inc. ("Weekend" or the "Company") (CSE: YOLO – FSE:0OS1) announces the closing of its deal to acquire California's Canna Candys(CBD) and Canna Medibles (THC), strengthening the Company's product portfolioas it executes on its strategy to build its flower, extracts and ediblesverticals.
"This isa highly strategic acquisition for Weekend, following our business objective toidentifying strong brands that require capital and expertise to grow," said Mr.Cody Corrubia, President and CEO of Weekend. "Paul Chu, CEO of Canna Candys, leadsa team with tremendous product development expertise and a thrivingdistribution network in Southern California," added Mr. Corrubia.
"Canna Candys and Canna Medibles are perfectly positioned to expandthroughout US states where recreational or medical cannabis is legal," said Mr.Paul Chu, CEO of Canna Candys. "Now, as part of Weekend, we will expand ourdistribution to build upon the strong foundation in Southern California addingNew York, Florida, Nevada, New Jersey, Texas and on to Europe and Asia," addedMr. Chu.
Canna Candys (THC) and CannaMedibles (CBD) highlights:
2019 same channel revenue forecastof approximately USD$ 2 million*
Launching a new 10MG VESIsorb lineof CBD and THC edibles
Distribution to 380 retail storesSouthern California
Artisanhandmade hard candies with 31 flavors & lollipops with 10 flavors
CBD only distribution deals beingnegotiated in NY, FL, NV, NJ, TX, CA, Europe and Asia
New product lines to include gummies,beverage packs, chocolates
*Cost of goods 38% based on current available supply chain agreementsand cost of goods for lab tested and approved raw material. Risks associatedwith the forecast are competition, regulatory change, an increase in costs, andconsistent availability of lab tested and approved raw material.
Weekend provided a secured loan of US$ 750,000and converted this note for 51% of the equity in the company that owns thesebrands.Weekend paid an additional US$690,000 and is in the process of issuing shares worth US$ 1,440,000 at a 5 dayVWAP (the "Escrow Shares") to acquire a further 29% of the company so as to own80%.The final 20% can be purchased,during a time period ending 90 days after the first closing, for US$ 720,000,to be paid by cash, shares or a combination of the two as agreed to by theparties.
The Escrow Shares will be released at thatdate that Canna Candys and Canna Medibles have occupied and are operation in amanufacturing facility located in Adelanto California.
Forfurther information, please contact:
Mr. CodyCorrubia, President and CEO
Telephone: 1(236) 317-2812 - Toll free 1(888) 556-YOLO (9656)
Neither the Canadian Securities Exchange nor itsRegulation Services Provider (as that term is defined in the policies of theCanadian Securities Exchange) accepts responsibility for the adequacy oraccuracy of this release.