CANADA: Weekend Unlimited has provided additional information in respect to its arm-length securities purchase agreement to acquire equity interests in California’s Canna Candys and Canna Medibles, adding a necessary edibles product portfolio as the Company executes on its strategy to build its flower, extracts and edibles verticals.
“The acquisition of Canna Candys and Canna Medibles will provide Weekend with strong products within each of the categories we are focused upon, flower, extracts and edibles,” said Mr. Cody Corrubia, President and CEO of Weekend. “Canna Candys are a CBD product while Canna Medibles are a THC product. The operations team is experienced, having built distribution in Southern California to 380 retail stores,” added Mr. Corrubia.
Canna Candys (CBD) and Canna Medibles (THC) Highlights:
• 2019 same channel revenue forecast of approximately USD$ 2 million*
• Active candy brand with distribution in 380 retail stores Southern California
• 31 flavors, single wrap candy and single wrap lollipop
• Strong operating team, production of new gummies, beverage and other edibles
• CBD only distribution deals being negotiated in NY, FL, NJ, NC, TX, CA
*Cost of goods 38% based on current available supply chain agreements and cost of goods for lab tested and approved raw material. Risks associated with the forecast are an increase in competition and costs, an adverse change in state regulation and consistent availability of lab tested and approved raw material
Weekend has provided a secured loan of US$ 750,000 to date. It has the option to convert this note for 51% of the equity in the company that owns these brands. Weekend has the option, for a period of 60 days from the initial closing, to pay an additional US$ 690,000 and issue shares worth US$ 1,440,000 to acquire a further 29% of the company so as to own 80%. 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 the parties. The parties are in the final due diligence stages and anticipates closing within 30 days.