VANCOUVER, British Columbia, August 2, 2017: Wildflower Marijuana Inc. (CSE: SUN) (the "Company") has signed a formal agreement to acquire the King Extract brand (the “Agreement”), its trademarks, all proprietary formulations and certain equipment. King has been operating in California since 2016 and has established distribution channels. The King purchase gives Wildflower a platform to launch its products in the State of California through King’s existing distribution channels which includes one of the largest distributors in California with access to over 600 retail cannabis stores.
Wildflower is currently having its products tested in order to meet the California requirements for selling its products. Inventory has been ordered and a steady supply of quality, pesticide free oil has been sourced. Wildflower expects sales to commence in September. Agreements for the oil, production and distribution are currently being completed.
With a population of over 39 million, California has the 6th largest economy in the world and is the largest cannabis market. With the passing of proposition 64, California approved the legalization of recreational cannabis this past November. Wildflower’s expansion into California comes at an ideal time for the Company to gain brand awareness and market share prior to full legalization.
The Agreement provides that King will receive 500,000 common shares of Wildflower. Wildflower will also issue an additional 500,000 common shares if sales reach US$180,000 in any given month on or before April 30, 2018 and a further 500,000 common shares if sales increases at a minimum of 15% per month in the aggregate over the 6 months following the second share issuance. In addition, Wildflower will pay an amount equal to 50% of the net profits from the King business until the earlier of, (i) July 26, 2019; and (ii) Wildflower shares trading at price of CAN$1.25 or greater for 10 consecutive trading days. Any shares issued will be subject to a one year hold period from the date of issue provided King is still receiving its net profits, otherwise there will be a four month hold period from the date of issue. In addition, the Company has granted 250,000 stock options at a price of $0.50 per share for a period of five years. As part of the Agreement, Wildflower has entered into a consulting agreement with Eric Bava, King’s managing partner, to run all the California operations for Wildflower.
Wildflower CEO, William MacLean stated, “We are excited to launch into California. The size and depth of the market in California makes this a significant milestone for Wildflower. Gaining access prior to the legalization of recreational cannabis gives us a platform to build upon. Further, we are fortunate to have the vendors as partners in building out the King and Wildflower brands. As part of their commitment they have agreed to hold their stock for a year or until they have helped build the value of Wildflower as reflected in our stock price being at least CAN$1.25.”
About Wildflower Marijuana Inc.
Wildflower is a cannabis company focused on developing and designing branded cannabis products. Wildflower sells its CBD+ products online and to retailers throughout the US and also produces and markets its THC products in regulated cannabis jurisdictions.
On Behalf of the Board of Directors
Director and CEO
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