Creating An Improved THC For Edibles and Beverages

Cannabis Global, Marijuana Company of America and Natural Plant Extract Form Research Partnership for New THC Nano Technologies

CALIFORNIA:   Cannabis Global, Inc., a cannabinoid and hemp extract science-forward company developing infusion and delivery technologies and investing in fast-growing cannabis markets, today announced the inclusion of Marijuana Company of America Inc., as a research partner in its Project Varin research and development program. The two companies plan to collaborate on the development of new food and beverage products in conjunction with Natural Plant Extract of California, Inc., which operates a licensed cannabis manufacturing business operation out of Lynwood, California. Cannabis Global and Marijuana Company of America have both have equity stakes in NPE.

Cannabis Global and Marijuana Company of America will collaborate to develop new protocols and techniques for food and beverage cannabinoid infusion based on the experienced gained under the Project Varin program.

Arman Tabatabaei, commented, “Marijuana Company of America and Cannabis Global are both equity holders in NPE, which holds both manufacturing and distribution licenses within the State of California, so this collaboration between the three companies is a natural fit. Upon the filing of our next patent in this area, we plan to jointly work within the California regulatory framework to create a new method to infuse food and beverages with THC. The technology holds the promise to rewrite the industry dynamic relative to both cost of infusion and overall efficacy for not only THC, but also for other cannabinoids.”

The recent successes of Cannabis Global’s Project Varin includes the creation of highly loaded cannabinoid nano units made from all-natural ingredients. Whereas the current state of the art for cannabinoid nano infusion of foods and beverages relies on chemicals to maintain stability, Project Varin technologies use no such chemicals. This will allow product formulators to create foods and beverages with clean labels and do so without the introduction of bitter tastes. Additionally, with the extreme bioavailability expected, manufacturers can use less active ingredients to reduce costs or include the full amount of active ingredient to provide a superior effect of the chosen cannabinoid.

“Our hempSMART product line places strong emphasis on purity and natural ingredients, so the Project Varin technology suite is of great interest to Marijuana Company of America,” commented Jesus M. Quintero, CEO. “With both Cannabis Global and our Company being equity holders in NPE, and each holding equity in the other via our recently announced stock swap, the three-way collaboration makes tremendous sense and has the opportunity to yield extraordinary results. We welcome our expansion of the relationship with Cannabis Global.”

Molson Coors Canada and HEXO Announce Agreement to Create JV Focused On Cannabis-Infused Beverages

CANADA: Molson Coors Canada, the Canadian business unit of Molson Coors Brewing Company, and leading Canadian cannabis producer, The Hydropothecary Corporation (HEXO), are pleased to announce that they have entered into a definitive agreement to form a joint venture to pursue opportunities to develop non-alcoholic, cannabis-infused beverages for the Canadian market following legalization.

The joint venture will be structured as a standalone start-up company with its own board of directors and an independent management team. Molson Coors Canada will have a 57.5% controlling interest in the JV, with HEXO having the remaining ownership interest. The new company will combine the proven beverage experience of Canada’s leading brewer with a recognized innovator in the fast-growing cannabis sector to explore the highly anticipated consumable cannabis market, which is expected to be legally permissible in Canada in 2019.

Molson Coors Canada and HEXO Announce Agreement

Molson Coors Canada and HEXO Announce Agreement

“Canada is breaking new ground in the cannabis sector and, as one of the country’s leading beverage companies, Molson Coors Canada has a unique opportunity to participate in this exciting and rapidly expanding consumer segment. This new venture is consistent with our growth strategy and our commitment to being First Choice for Consumers and Customers by ensuring that Canadians have access to high-quality products that meet their evolving drinking preferences,” said Frederic Landtmeters, President and CEO of Molson Coors Canada. “While we remain a beer business at our core, we are excited to create a separate new venture with a trusted partner that will be a market leader in offering Canadian consumers new experiences with quality, reliable and consistent non-alcoholic, cannabis-infused beverages. We look forward to partnering with HEXO, a recognized leader in the medical cannabis space in Canada that will bring robust production capacity, a track record of innovation, and, most importantly, shared values when it comes to doing business the right way and earning the trust of consumers.”

“HEXO continues to lead the way for smoke-free cannabis innovation in Canada. We are excited about this partnership with Molson Coors Canada, an iconic leader in adult beverages, as we embark on the journey of building a brand new market. With this new company, we are bringing together Quebec’s oldest, most established company with one of its newest success stories in a truly innovative partnership,” said HEXO’s CEO and co-founder Sebastien St-Louis. “As two leading companies who share a track record of excellent practices, as well as respect for law and regulations, HEXO and Molson Coors Canada have established a relationship built on trust, and together we will develop responsible, high-quality cannabis-infused beverages for the consumable cannabis market in Canada.”

Closing of the transaction, which is targeted to occur before September 30, 2018, is subject to the satisfaction of certain conditions, including execution and delivery of various transaction agreements, including governance documents and R&D and supply agreements. In connection with the closing of the transaction, subject to the final approval of the Toronto Stock Exchange, HEXO will issue to Molson Coors Canada warrants to purchase shares of HEXO.