CANADA: Canada Coal announced that it has signed a non-binding Letter of Intent (“LOI”) with Honu Inc., a licensed marijuana grower and producer of marijuana concentrates and edible marijuana products in the State of Washington. The LOI provides for a 90-day period of exclusivity, which will allow both parties to exchange information and maintain confidentiality as each party seeks to determine whether mutually beneficial business opportunities may exist. The LOI does not represent a change of business for the Company. The LOI contains no terms of compensation, and does not contemplate a definitive agreement between the parties.
In November 2012, the Washington State Liquor and Cannabis Board (“WSLCB”) passed Initiative 502 (“I-502”) pursuant to a vote by the people of the State of Washington. I-502 authorized the WSLCB to regulate and tax recreational marijuana products for persons over twenty-one years of age and thereby created a new industry for the growing, processing and selling of Washington State-regulated recreational marijuana products. A recent WSLCB commissioned report by the Rand organization suggests that there are currently up to 650,000 recreational marijuana users in Washington State, worth approximately USD $1.25 – $1.5 Billion in annual sales.
Honu Inc. began legally selling cannabis products into the Washington market in April 2015. In 2016, Honu was honoured as having the “Best Cannabis Brand Design 2016” in an online poll published by the Marijuana Business Association (MJBA). In the same year, its Coconut Snowballs were chosen as the best sweet edible recreational cannabis product.