CANNAMERICA BRANDS CORP. (“CannAmerica” or the “Company”) (CSE: CANA) (OTCQB: CNNXF) is pleased to announce that on October 28, 2019, it entered into a long-term licensing agreement (the “Agreement”) and brand partnership with Canna Provisions Inc. (“the Licensee”) under which the Licensee will have an exclusive license to manufacture and distribute CannAmerica branded cannabis infused gummy products and Live Labs branded concentrate products (the “Licensed Products”) in the Commonwealth of Massachusetts.

Terms of the Agreement include:

• the initial term will be for a period of 3 years;
  
  
• Canna Provisions Inc. will follow formulations and processes provided by the Company;
  
  
• If Licensor wishes to grant a license to a third-party licensee with respect to the marketing, sale, and distribution of Licensed Products in New York, Connecticut, Vermont, New Hampshire, Maine, or Rhode Island, Canna Provisions Inc. has the right of first refusal;
  
  
• during the first 180 days of the initial term, the licensee will employ one full-time salesperson in Massachusetts to promote, market, advertise, and sell the Licensed Products;
  
  
• In addition to the fees contained in the agreement, a licensee fee of US$500,000 due to the Company in installments, payable as follows:
  
  
  • US$50,000 within two days after the mutual execution of the Agreement;
    
    
  • US$200,000 in installment payments (US$50,000 per month for a period of four months) with the first installment due two days after the Licensee obtains a license for its production facility from the Commonwealth of Massachusetts;
    
    
  • US$250,000 due 12 months after the Effective date of the Agreement
    
    
• Upon receipt of the final cash payment of each specific installment, CANA will issue the Licensee US$250,000 of the Licensor’s common stock at a per share issue price equal to the closing price of CANA’s common stock on the day the Licensor receives final payment of each installment.
  
  
• the Agreement may be terminated in certain circumstances, including:
  
  
  • applicable state or location regulatory authorities reject or cancel the Agreement, determine that the Agreement is illegal or impermissible, or determine that the Agreement would require the Company to be registered as an owner of the Licensee;
    
    
  • applicable federal authorities require the parties to cease performing under the Agreement or threaten enforcement against the parties in relation to the Agreement or to either party’s violation of federal law regarding cannabis;
    
    
  • upon 120 days’ written notice by either party to the other party; or
    
    
  • by either party within five days’ written notice to the other if the other party files a petition of bankruptcy or is adjudicated bankrupt.

“We are thrilled to announce our agreement with Canna Provisions Inc. for manufacturing and distribution of CannAmerica branded edibles products in the great State of Massachusetts,” said Dan Anglin, CEO and Co-Founder of CannAmerica. “Having the opportunity to work in concert with a knowledgeable team and operation that continues to expand its footprint across the state is an exciting beginning to the final quarter of 2019.”

“By signing this Agreement, CannAmerica is poised to bring its lineup of products into a growing cannabis market and spread our brand into the Northeastern United States,” said Anglin. “Partnering with a group that shares our vision will allows us to continue to achieve the organizational success we had envisioned for the year.”

SOURCE CannAmerica Brands Corp.