LOS ANGELES, CA / ACCESSWIRE / March 16, 2021 / Cannabis Global, Inc. (OTC PINK:CBGL) ("Cannabis Global" or the "Company"), an emerging operator of disruptive businesses and technologies in the cannabis and hemp marketplace, announces today its cannabis product manufacturing initiative for its licensed facility at Lynwood, California, Natural Plant Extract (NPE). The Company plans to manufacture multiple types of cannabis products via its own brands and in partnership with other cannabis brands.
"This week marks an important milestone relative to our recent acquisition of a controlling position in NPE," commented CEO Arman Tabatabaei. "The facility is already manufacturing several types of cannabis edibles, and our plan is to quickly ramp up production of cannabis flower-based products and additional categories of edibles. We are expecting a busy next few months relative to our manufacturing calendar. We are also looking forward to fully consolidate NPE's income statement and balance sheet with Cannabis Global now that we have a controlling ownership interest in NPE. This should help boost our topline revenue significantly."
Cannabis Global believes the Lynwood facility is optimal for cannabis manufacturing and distribution. The site is approved for all types of cannabis manufacturing, included in the Type 7 license, which permits all types of solvents (including volatile) to extract cannabinoids from cannabis plant material. Local jurisdictions and the state of California severely restrict the issuance of type 7 licenses making ownership highly prized. Additionally, Lynwood offers one of the lowest city tax rates in the state of California with a 1.5% distribution tax and 2% manufacturing tax, making NPE more competitive than almost any other company in California with stronger margins.
Mr. Jim Riley, a member of the Cannabis Global board of directors and marketing consultant to the Company commented, "We have a synergistic plan for NPE in that most of the products we manufacture will also flow through our Northern Lights distribution operation, which is housed at the same facility. This will allow us to significantly increase our future revenue base and margin capture. With the Los Angeles and overall cannabis markets continuing to expand rapidly, we are optimistic about our future growth."
Last month, Cannabis Global increased its ownership stake to a 56.4% controlling interest in Natural Plant Extract. In addition to business opportunities available from product manufacturing and distribution to all parts of the State of California, Cannabis Global also sees strong synergies between the NPE operations and its developing technologies in the areas of secure cannabis transport, cannabis infusions, and all-natural polymeric nanoparticle technologies. Thus far, the Company has filed six provisional patents, three non-provisional patents and has recently announced its Comply Bag secure cannabis transport system with integrated track and trace capabilities via smartphones which will be available soon.
About Cannabis Global, Inc.
Cannabis Global, Inc. is a Los Angeles based, fully audited and reporting Company with the U.S. Securities & Exchange Commission, trading under the stock symbol CBGL. We are an emerging force in the cannabis marketplace with a growing product and proprietary intellectual property portfolio. We are marketing and producing Comply Bag, an innovative solution for cannabis storage, transport, and tracking. We are also the developer and marketer of the Hemp You Can Feel brand, and the corporation is a major shareholder in Natural Plant Extract, a Southern California licensed cannabis manufacturer and distributor, which licenses our technologies to produce edibles for the cannabis marketplace. Cannabis Global has filed three non-provisional and multiple provisional patents for cannabis infusion and nanoparticle technologies and continues an active research & development program.
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).
Forward-Looking Statements
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", 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 products. 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, 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.
For more information, please contact:
Arman Tabatabaei
IR@cannabisglobalinc.com
+1 (310)-986-4929
IR Contact:
Stuart Smith
https://www.smallcapvoice.com/
ssmith@smallcapvoice.com
SOURCE: Cannabis Global, Inc.
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