VANCOUVER and DENVER, March 6, 2019 /CNW/ – Cannabis One Holdings Inc. (CSE:CBIS) (“Cannabis One” or the “Company“), an emerging, premier “House of Brands” in North America, is pleased to announce that it has signed, through its wholly-owned U.S. subsidiary, Bertram Capital Finance, Inc., a three-year, multi-state territorial licensing and royalty agreement (the “Agreement“) for the exclusive rights to produce, market, and distribute a variety of specific cannabis products under the Cheech’s Private Stash (“CPS“) brand. CPS is represented by GLE Brands Inc. (“GLE“) and film star Cheech Marin, of the legendary comedy duo, Cheech and ChongTM. The partnership under the Agreement will allow Cannabis One to continue the expansion of its product catalogue and consumer reach across U.S.-State legal markets, as it continues to position itself as a branded-products leader in North America cannabis.
In receiving the exclusive territorial rights to the CPS suite of products, Cannabis One has further expanded its branded portfolio line with the addition of CPS products such as pre-rolls under the Big CheecharrónTM label, a collection of CPS edibles, including chocolates and gummies with unique flavours such as “Mango Stash” and “Tropical Stash”, a unique line of CPS vape pens and vape-cartridge refills, along with a breadth of CPS wellness topicals and tinctures. Developed directly with Cheech Marin, the “Cheech’s Private Stash” brand name is intended to give consumers a sense of confidence that CPS products meet a certain standard of quality and excellence and the management of Cannabis One believes that CPS branded products are positioned to be uniquely recognizable among less-familiar branded products with the potential to generate substantial demand from consumers.
Under the terms of the Agreement, GLE will grant Cannabis One a three-year exclusive rights to produce a variety of products under the “Cheech’s Private Stash” brand name, including, pre-rolls, vapes and vape refill cartridges, edibles, as well as the CPS-branded wellness line of topicals and tinctures in the States of Colorado, Washington, and Oregon. In addition, the Agreement also provides for Cannabis One to further expand its market reach by distributing CPS-branded edible products and the CPS-branded wellness line into the legal Nevada market. The Agreement maintains a royalty structure in receipt of the exclusive rights to produce, market, and distribute CPS-branded products, payable to GLE as a percentage of the gross wholesale price paid for CPS-branded products by each of the Company’s retailers for the duration of the three-year term of the Agreement.
“We are so excited to collaborate with the Cannabis One team as we roll out fabulous items for the Cheech’s Private Stash brand. We believe that this relationship is truly symbiotic as we are committed to our vision of great consistent product. We stand behind the promise that ‘Cheech’s Private Stash will always be good!'” commented Lisa Marcus, Brand Manager of Cheech’s Private Stash brand.
“We are very excited to have partnered with Cheech’s Private Stash brand, represented by GLE and Cheech Marin, which shows support for Cannabis One’s expanding vision of becoming the premier ‘House of Brands’ for cannabis in North America. This Agreement allows us to add products to our portfolio that are deeply-rooted in the evolutionary culture of cannabis – and we couldn’t be more excited to bring this presence to a wider audience,” commented Jeffery Mascio, CEO of Cannabis One, continuing, “it is through our data driven brand aggregation and development strategy that we will look to further expand our brands and their respective footprints across all legal cannabis markets.”
About Cannabis One
IF WE BRAND IT, THEY WILL COME – Cannabis One Holdings Inc. (CSE:CBIS) is focused on aggregating and optimizing popular cannabis brands throughout North America. With its unique, franchise-ready retail brand, The JointTM, and through targeted acquisition and partnership opportunities, Cannabis One intends to become the premier, globally-recognized, “House of Brands”, holding a client portfolio of award-winning products with an extensive market footprint. Through the Company’s The JointTM retail concept, Cannabis One intends to leverage the consumer and brand data harvested from its retail locations to bring data-driven analytics to an emerging, branded industry. For consumers, Cannabis One desires to become the definitive source for unparalleled product selection and renowned service in an otherwise fragmented market.
Disclaimer and Forward-Looking Information
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “anticipate”, “could”, “intend”, “expect”, “believe”, “will”, “projected”, “potential”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the parties’ current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially.
The forward-looking information contained in this release is made as of the date hereof and the parties are not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
The Agreement provides Cannabis One with an exclusive right to produce a variety of products under the “Cheech’s Private Stash” brand name. Cannabis One has not started any production under its exclusivity arrangement, however once it does, Cannabis One will be involved in production and distribution of CPS branded products in certain legal States in United States. Cannabis is legal in certain States in the United States (“U.S.“), however cannabis remains illegal under U.S. federal laws. The U.S. Department of Justice issued guidance in 2013 indicating that it will focus on certain enforcement priorities, outside of which it will generally not enforce federal prohibitions on cannabis in U.S. states that have authorized this conduct so long as the U.S. state has implemented a strong and effective regulatory program. This federal guidance is subject to change, rescission or alteration by other federal government policy pronouncements at any time. Cannabis One intends to conduct its U.S. cannabis operations in a manner consistent with the applicable State laws is in compliance with regulatory and licensing requirements applicable in the applicable State. However, the readers should be aware that change in federal guidance on enforcement actions could adversely affect Cannabis One’s ability to access private and public capital required in order to support continuing operations and its ability to operate in the U.S.
Unlike in Canada which has Federal legislation uniformly governing the cultivation, distribution, sale and possession of medical cannabis under the Cannabis Act (Federal), readers are cautioned that in the U.S., cannabis is largely regulated at the State level. To the knowledge of Cannabis One, there are to date a total of 33 states, plus the District of Columbia, that have legalized cannabis in some form. Notwithstanding the permissive regulatory environment of medical cannabis at the State level, cannabis continues to be categorized as a controlled substance under the Controlled Substances Act in the U.S. and as such, cannabis-related practices or activities, including without limitation, the manufacture, importation, possession, use or distribution of cannabis are illegal under U.S. Federal law. Strict compliance with State laws with respect to cannabis will neither absolve Cannabis One of liability under the U.S. Federal law, nor will it provide a defense to any Federal proceeding, which may be brought against Cannabis One. Any such proceedings brought against Cannabis One may materially adversely affect its operations and financial performance in the U.S. market.