LOS ANGELES, CA / ACCESSWIRE / May 3, 2022 / Cannabis Global, Inc. (OTC PINK:CBGL), Cannabis Global, Inc., a licensed Los Angeles-based manufacturer and distributor in the cannabis sector, today announced an important supply agreement to solidify the Company's position in the solventless cannabis product sector. Under the terms of an agreement, Sugarmade, Inc. (OTC Pink:SGMD) will cultivate cannabis specifically for Cannabis Global. The initial contract calls for the supply of 25,000 pounds of "Fresh Frozen" cannabis, which will be cultivated specifically to Cannabis Global's specifications.
Fresh Frozen cannabis is immediately flash frozen upon harvest - instead of the traditional treatment of drying and curing after harvest. This form of cannabis is almost exclusively used to create ultra-premium cannabis concentrates, such as live rosin, hash and live resin.
"This Agreement serves several very important purposes," commented CEO Arman Tabatabaei. "By contracting with Sugarmade we will be able to specify exactly the strains and cultivation parameters that will enable us to produce the finest hash and rosin products for our customers. By locking in a $28 per pound future price, compared to the current spot price well in excess of $100 per pound, we expect our margins to be meaningfully enhanced. Perhaps even more importantly, having a steady supply of premium Fresh Frozen cannabis will allow us to provide consistency in our products and to ensure an adequate supply of products will be available to our very fast growing base of retail customers. As we have recently announced, our retail base and our revenues are ramping quickly. This Agreement helps us to meet the substantial demand we are experiencing."
The companies have signed a pre-booked, fixed-price contract for an initial 25,000 pounds for $700,000, which will include cash payments from Cannabis Global to Sugarmade of $300,000, with notes accounting for the remaining $400,000. Planting is expected to begin in mid-May and continue into early June. Cannabis Global will also hold an option to purchase additional pounds if the cannabis cultivation effort yields excess materials.
Mr. Tabatabaei continued, "We plan to process a significant amount of this material at our Lynwood California location. In addition, we will enter the wholesale space to supply up to 10 separate strains of Fresh Frozen Cannabis to other solventless manufacturers in the Los Angeles area. With the market for solventless products growing rapidly, we believe this agreement will be an important component of our future success."
Cannabis Global plans to launch its premium rosin line under the Wolfgang Wax brand name by way of its recent acquisition of the Caliwanna, LLC brands. In addition, Cannabis Global will utilize the rosin concentrates produced from the biomass to enhance its rosin preroll and edible lines, and in the future for inclusion in cannabis beverages and tinctures, we are currently in development.
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. Our subsidiary, Natural Plant Extract (NPE), is 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.
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.
Corporate 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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https://www.accesswire.com/699776/Cannabis-Global-Commences-Fresh-Frozen-Supply-Contract-with-Sugarmade-Inc
