TORONTO & CALGARY, Alberta--(BUSINESS WIRE)--Cannagistics, Inc (OTCMarkets: “CNGT”) (the “Company” or “Cannagistics”) announced the signing of a Letter of Intent (the “LOI”) with Unified Cannabis of Calgary, Canada (“Unified”) whereby Unified will merge qualified assets into the Company in an all-stock transaction. The Company will then raise the capital necessary to effectuate the merger of the assets and acquisition targets of Unified and for the explosive organic growth strategy of Cannagistics and Unified, combined, thus creating the first CBD/Hemp/Cannabis International Vertically Optimized Company (CIVOC).
“I’m excited today to announce this combination creating the first CIVOC,” stated Cannagistics CEO, James Zimbler, “Unified’s impressive talent pool of over 100 years of cannabis cultivation, supply chain and retail experience along with key profitable operating assets combined with our logistics and licensed CBD Intellectual Property is creating a unique profitable international powerhouse in this evolving industry.”
As part of the transaction, Unified will be bringing acquisitions with up to C$50M of revenue of CBD/hemp/cannabis cultivation, supply chain and retail stores from the mature Colorado & Oregon markets, Canadian emerging market along with some cannabis real estate assets. These acquisitions are all accretive and have positive earnings. Cannagistics will be seeking the funding for those transactions through its both U.S. and Canadian sources.
“We’re ecstatic to be joining forces with Cannagistics and be able to help monetize their licensed CBD Fast Acting IP into products,” added Unified Chairman Jonathan Denis. “Being able to grow, manufacture and then retail those patented fast acting CBD products into our stores will give us a competitive edge in having a premiere science based highly effective CBD line. Along with the infrastructure provided by the Unified acquisition targets for both cultivation, processing, logistical and retail we now have one of the first CBD product and services related companies that is profitable within one quarter of consolidation.”
The combination creating the first CIVOC will allow for fast profitability, with outstanding corporate governance and a highly experienced team. Maximizing cross border opportunities will enhance profitability and shareholder value.
The transaction’s first stage of asset closing is expected this month with subsequent closings subject to traditional due diligence, regulatory, funder and other transactional approvals. Unified will be appointing three members to the Cannagistics board including their chairman, Jonathan Denis who was the former Attorney General of Alberta.
About Cannagistics: Cannagistics is a Nevada based, cannabis-based logistics company with an operating entity in Mississauga, Ontario, along with a joint venture partnership that gives access to the necessary licenses for CBD delivery as well as license and distribution agreements for intellectual property as developed by Dr. Babak “Bobby” Ghalili, the company’s Medical Director.
The company trades on the OTC Markets under the symbol “CNGT.”
About Unified Cannabis: Unified is an international hemp and cannabis company based in Calgary, Canada and Denver, Colorado, consolidating profitable revenue from cultivation to retail, including supply chain assets. With corporate governance led by the former Attorney General of the Province of Alberta and over 100 years of executive cannabis expertise from US mature markets, Unified is bringing cultivation, supply chain, product manufacturing and retail dispensaries under one organization with the intent to provide consistent and increasing shareholder value.
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