DENVER, CO, March 16, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- American Cannabis Company, Inc. (OTCQB: AMMJ) (“ACC” or “Company”) is pleased to announce that on March 11, 2021, it executed a material definite agreement to acquire the assets and operations of Medihemp, LLC, and its wholly owned subsidiary SLAM Enterprises, LLC, and Medical Cannabis Caregivers, Inc., all doing business as Naturaleaf™, located in the metropolitan area of Colorado Springs, Colorado. A long-standing and reputable medical cannabis retailer in a thriving market, Naturaleaf™ operates three licensed medical marijuana centers, including a 10,000 square foot cultivation facility containing non-volatile extraction facilities, and has provided patients with quality cannabis, cannabis-derived products and related accessories for over ten (10) years.
“For over a decade, Naturaleaf™ has built a brand name that truly speaks for itself. Providing medical quality cannabis and products to its loyal customer base of registered patients through a one-on-one retail concierge experience, this acquisition is something that our team is excited for as we look to improve the overall business performance and increase revenues while maintaining brand integrity,” said Terry Buffalo, CEO of American Cannabis Company.
Buffalo continued, “Through the due diligence process our team identified key performance indicators that we will use as a baseline to improve revenue, operational costs, and identify market trends as a means to fulfill the ever-growing demand. We expect this acquisition to bring in over $2.2mm in gross revenue, and we look to increase upon that. For more details, please read the Company’s most recent 8-K filing. All of the documents required to be filed to complete transfer of the licenses have been filed with the appropriate regulatory agencies, and we anticipate closing the transaction after final regulatory approval, which we expect in the second quarter.”
Scott Saunders, owner of Naturaleaf™, commented: “We are very happy to have Naturaleaf™ join the American Cannabis Company portfolio of brand assets. The staff is excited to transition under the ownership of a public company as this industry continues to emerge and expand, and I am excited for the people of Colorado Springs and Southern Colorado to see what American Cannabis Company can do to a brand that the team and I have spent years building.”
On December 10, 2020, American Cannabis Company announced that it had executed a non-binding letter of intent to acquire all three (3) Naturaleaf™ medical marijuana centers along with its ten thousand (10,000) square foot commercial cultivation facility that also includes non-volatile extraction facilities.
After obtaining final regulatory approval transferring the Naturaleaf™ licenses to the Company, and finalizing the closing of the asset purchase transaction, the Company plans to acquire additional local and national cannabis assets and brands, with the goal of creating a portfolio of cannabis assets elevating the consumer experience through a commitment to wellness, quality products, and cleaner green practices.
For a complete disclosure of the asset purchase agreement, see the Company’s Form 8-K filed with the Securities and Exchange Commission:
About American Cannabis Company, Inc.
American Cannabis Company, Inc. offers end-to-end solutions to existing and aspiring participants in the cannabis and hemp industries. We utilize our industry expertise to provide business planning and market assessment services, assist state licensing procurement, create business infrastructure and operational best practices. We are continuing to grow the company by promoting our operational management services and license the American Cannabis Company brand as well as continuing to analyze acquisition opportunities worldwide. American Cannabis Company also developed and owns a portfolio of branded products including: SoHum Living Soils® – Winner of the High Times S.T.A.S.H. Award for “Best Potting Mix,” The Cultivation Cube™ and the High-Density Cultivation System™. American Cannabis Company also designs and provides other industry-specific custom product solutions.
For more information about American Cannabis Company, please visit:
https://www.youtube.com/watch?v=aENC4aeNZis (High Density Cultivation System)
https://www.youtube.com/watch?v=e9rNxFph_tQ&t (Cultivation Cube)
https://www.youtube.com/watch?v=XoIcopO2yE8&t (SoHum Living Soils®)
For more information on Naturaleaf™, please visit:
This news release contains "forward-looking statements," which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as "anticipate", "seek", intend", "believe", "estimate", "expect", "project", "plan". These or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations regarding the use and development of cannabis-based drugs. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time to time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.
Cannabis Remains an Illegal Schedule 1 Drug Under Federal Law
Thirty-five states, including Colorado, the District of Columbia and four U.S. Territories currently have laws broadly legalizing cannabis in some form for either medicinal and/or recreational use governed by state specific laws and regulations. Although legalized in some states, cannabis is a “Schedule 1” drug under the Controlled Substances Act (21 U.S.C. § 811) (“CSA”) and is illegal under federal law. Cannabis and its derivatives are viewed as being highly addictive and having no medical value. The United States Drug Enforcement Agency enforces the Controlled Substances Act, and persons violating it are subject to federal criminal prosecution.
As a result of the November, 2020 federal elections, and the election of Joseph R. Biden as president, it is expected that the federal government will move to amend parts of the CSA and de-schedule cannabis as a Schedule 1 drug.
In late January, 2021, Senate Majority Leader Chuck Schumer said lawmakers are in the process of merging various cannabis bills, including his own legalization legislation. He is working to enact reform in this Congressional session. This would include the Marijuana Freedom and Opportunity Act, that would federally de-schedule cannabis, reinvest tax revenue into communities most affected by the drug war, and fund efforts to expunge prior cannabis records. It is likely that the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act would be incorporated.
Other federal legislation under review for possible submission includes the SAFE Banking Act (or Secure and Fair Enforcement Act), a bill that would allow cannabis companies to access the federally-insured banking system and capital markets without the risk of federal enforcement action, and the Strengthening the Tenth Amendment Through Entrusting States Act (or STATES Act), a bill that seeks protections for businesses and individuals in states that have legalized and comply with state laws.
Notably with respect to our business, on November 1, 2019, Colorado Bill HB-19-1090, was passed and made effective. This law allows publicly traded corporations to apply for and qualify for the ownership of Colorado cannabis licenses. Other states that have legalized cannabis for recreational and/or medicinal use restrict public companies from owning interests in state cannabis licenses altogether, or have enacted regulations which make it difficult for corporations to comply with application requirements, including all shareholders submitting to and passing background checks.
On September 18, 2020, Colorado’s Marijuana Enforcement Division (MED), approved the Company’s application for suitability, establishing the Company as one of the few publicly traded companies authorized to acquire and operate various cannabis licenses throughout Colorado, in both the recreational and medical markets.