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● Immediate 21% interest with right to increase to 40%
● Provides access to SpeedWeed's California -wide delivery platform and real-time visibility into customer purchasing patterns to drive business growth
● Benefits from 2083 Group's media & brand expertise
TORONTO , July 16, 2019 /CNW/ - Mojave Jane Brands Inc. ("Mojave Jane" or the "Company") (CSE:JANE) (HHPHF) (FSE:OHCN), a California cannabis company, today announced that it has acquired 20.7% of the issued and outstanding shares of the 2083 Group (the "2083 Shares"), with an opportunity to acquire up to 40% of the issued and outstanding 2083 Shares upon 2083 Group meeting certain predetermined performance milestones key to expanding its consumer reach. 2083 Group is an innovator in California's growing cannabis marketplace, best known for its Speedweed delivery platform, an anchor brand in the cannabis space. AJ Gentile, CEO of the 2083 Group was elected as a director to Mojave Jane's board at its recent annual general meeting. This investment marks the achievement of an important milestone for Mojave Jane by providing a vital element of the Company's strategy to produce high value consumer brands and deliver them to the California market.
In addition to Mojave Jane acquiring an interest in the 2083 Group, the parties have also established a strategic partnership that includes:
- Access to consumer purchase and market data that will provide a unique understanding of consumer demands and buying habits through Speedweed's growing database of purchases made in the California market;
- Development of Mojave Jane products and brands to match consumer preferences in real time;
- Delivery of those products right to the consumer via the Speedweed delivery platform;
- A significant advancement towards Mojave Jane's strategic goal to own a completely integrated supply chain;
- Creation of a repeatable model that can be extended to new markets; and,
- The addition to Mojave Jane of 2083 Group's extensive cannabis market expertise.
The investment allows the 2083 Group to quickly expand their delivery services in Southern and Northern California , and to also impact Mojave Jane's development of products to align with market trends.
Gary Latham , CEO of Mojave Jane, comments:
"Our partnership with 2083 represents an important part of Mojave Jane's strategy in California and as we are looking to expand into new markets across the state. Closing this investment means that we can begin to realize the benefits of all of 2083 Group's assets, including direct-to-consumer-delivery, rapid introduction of Mojave Jane brands and products to an existing and growing consumer base, and a host of promotional capabilities. Gaining access to delivery is the final piece in owning the entire cannabis supply chain, and we are now very well positioned for generating revenue and creating value for our investors.
A.J. Gentile, CEO of 2083 Group, added:
"Two words: game changer. That's what our partnership with Mojave Jane is. It provides us with the capital we need to continue the expansion of SpeedWeed's on-demand home-delivery platform in California with leading brands and retailers. With a database of over 250,000 customers and growing, we see consumer trends as they happen. What's exciting is the ability to marry our data with Mojave Jane's manufacturing and distribution capabilities. Now, we can bring to market the products our customers want — in near real-time. A true game changer!"
Under the terms of the Share Exchange and Subscription Agreement dated July 12, 2019 between Mojave Jane and the 2083 Group (the "Agreement"), the parties have agreed as follows:
- Mojave Jane had advanced a secured loan (the "Loan") to the 2083 Group in the principal amount of USD$500,000 . The Loan bore interest at an annual rate of 7% and was due and payable within 12 months from the date of advance. Upon entering into the Agreement, the Loan has been converted into 10.2% of the issued and outstanding 2083 Shares;
- Mojave Jane acquired an additional 10.5% of the issued and outstanding 2083 Shares for an aggregate purchase price of USD$520,000 ;
- Mojave Jane has an option to acquire additional 2083 Shares to increase its interest in the 2083 Group from 20.7% to 40% upon 2083 Group meeting certain predetermined performance milestones key to expanding its consumer reach, for an additional aggregate purchase price of USD$1,580,000 ; and,
- AJ Gentile has joined the Mojave Jane board, and Gary Latham has been appointed to the board of the 2083 Group.
About 2083 Group Incorporated.
2083 Group owns and operates a number of consumer-facing companies in the cannabis space.
- "SpeedWeed" is one of California's largest cannabis delivery services, in America's fastest-growing industry and has become synonymous with legal, on-demand cannabis delivery servicing a quickly growing database of 200,000 consumers throughout California .
- "Verdalink" develops proprietary software solutions for the cannabis industry including: order routing, logistics, real-time GPS driver tracking, inventory control, customer geofencing and marketing capabilities in a single platform.
- "The Joint Studios, Inc." is a media production facility in the heart of Hollywood producing over 40 live and recorded shows delivering and distributing content through Sirius-XM, Cumulus Networks, iHeartRadio, Premiere, The World Famous Comedy Store and All Things Comedy.
- "SW Celebrity, LLC" develops celebrity-endorsed cannabis brands and products, connects cannabis brands with celebrities and influencers who promote these products through a vast network of live venues and studio-produced content.
Innovative technology, celebrity support, political activism, industry leadership and obsession with customer satisfaction have made 2083 Group one of the most exciting cannabis companies in the industry. To learn more, visit 2083group.com.
About Mojave Jane
Mojave Jane Brands Inc. is a Canadian-based cannabis sector brand and distribution company emerging as a true vertical integrator in California's legal cannabis space serving recreational and wellness markets. The Company's U.S. holdings are comprised of assets set up as a vertical stack including cultivation to scale, branding, packaging, manufacturing & processing, a distribution arm, the CALIGOLD edibles brand and access to the Speedweed delivery platform. Operating out of licensed strategic locations within the state, Mojave Jane is leveraging its consumer and brand-focused business model to generate sustainable profits delivering quality product by recognized brands.
Mojave Jane trades in Canada , ticker symbol JANE on the CSE, and in Europe , ticker symbol 0HCN on the FSE. Neither the CSE, nor the FSE has approved nor disapproved the contents of this press release. Neither the CSE, nor the FSE accepts responsibility for the adequacy or accuracy of this release.
Marijuana Industry Involvement
Canadian listings (CSE) will remain in good standing as long as they provide the disclosure that is rightly required by regulators and complying with applicable licensing requirements and the regulatory framework enacted by the applicable state in which they operate. Marijuana is legal in certain states however marijuana remains illegal under US federal law and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that Mojave Jane's ability to access private and public capital could be affected and or could not be available to support continuing operations.
On behalf of the Board of Directors
Mojave Jane Brands Inc.
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 "could", "intend", "expect", "believe", "will", "projected", "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 Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the intention of the parties to complete the Acquisition and certain ancillary transactions contemplated thereby. These transactions are subject to a number of material risks, and there is no assurance that they will be completed on the terms or within the timeframes currently contemplated, or at all. The forward-looking information contained in this press release is made as of the date hereof and the Company is 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.
All monetary references herein refer to Canadian dollars unless otherwise specified.
SOURCE Mojave Jane Brands Inc.
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