VANCOUVER, BC, CANADA (22 November, 2018) – Weekend Unlimited Inc. announces the closing of its deal to acquire California’s Canna Candys (CBD) and Canna Medibles (THC), strengthening the Company’s product portfolio as it executes on its strategy to build its flower, extracts and edibles verticals.
“This is a highly strategic acquisition for Weekend, following our business objective to identifying strong brands that require capital and expertise to grow,” said Mr. Cody Corrubia, President and CEO of Weekend. “Paul Chu, CEO of Canna Candys, leads a team with tremendous product development expertise and a thriving distribution network in Southern California,” added Mr. Corrubia.
“Canna Candys and Canna Medibles are perfectly positioned to expand throughout U.S. states where recreational or medical cannabis is legal,” said Mr. Paul Chu, CEO of Canna Candys. “Now, as part of Weekend, we will expand our distribution to build upon the strong foundation in Southern California adding New York, Florida, Nevada, New Jersey, Texas and on to Europe and Asia,” added Mr. Chu.
Canna Candys (THC) and Canna Medibles (CBD) highlights:
- 2019 same channel revenue forecast of approximately USD$ 2 million*
- Launching a new 10MG VESIsorb line of CBD and THC edibles
- Distribution to 380 retail stores Southern California
- Artisan handmade hard candies with 31 flavors & lollipops with 10 flavors
- CBD only distribution deals being negotiated 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 agreements and cost of goods for lab tested and approved raw material. Risks associated with the forecast are competition, regulatory change, an increase in costs, and consistent availability of lab tested and approved raw material.
Weekend provided a secured loan of US$ 750,000 and converted this note for 51% of the equity in the company that owns these brands. Weekend paid an additional US$ 690,000 and is in the process of issuing shares worth US$ 1,440,000 at a 5 day VWAP (the “Escrow Shares”) 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 Escrow Shares will be released at that date that Canna Candys and Canna Medibles have occupied and are operation in a manufacturing facility located in Adelanto California.
