Cannabis Kinetics Corp. to Acquire Established Hydroponics and Indoor Garden Supplier

WESTMINSTER, CO--(Marketwired - Sep 21, 2014) - Cannabis Kinetics Corp. (OTCQB: CANK) ("Cannabis Kinetics" or the "Company") an emerging fully integrated cannabis management company, is pleased to announce that it has entered into a Non-Binding Letter of Intent ("LOI") with Jeremy N. Stout, Inc. d/b/a The Big Tomato, a Colorado corporation ("The Big Tomato"), and its two shareholders for the sale of all of the operating assets of The Big Tomato, an established Denver area and online hydroponics and indoor garden supplier. 

Eric Hagen, CEO of Cannabis Kinetics, commented, "The successful acquisition of the well-known The Big Tomato indoor garden supply business would significantly contribute to the enhancement and diversification of our marijuana focused portfolio. I look forward to executing a final agreement to complete this very strategic transaction in the next few weeks and continuing to seek out other attractive and synergistic opportunities in the cannabis sector."

As per certain terms of the LOI, the proposed purchase price for the business of The Big Tomato is $1,500,000 in cash (payable over two years in equal semi-annual installments of $375,000 commencing six months from the closing) and shares valued at $9,000,000 of a newly created class of preferred stock. However, it should be noted that the parties are still negotiating final terms of a definitive agreement for this potential transaction which may be materially different than currently proposed.

The closing of the transactions contemplated by the LOI is subject to completion of due diligence, the execution and delivery of a definitive purchase agreement and related documentation, and delivery of audited financial statements of The Big Tomato. There can be no assurance that any transaction will be completed as proposed or at all. 

Additional details relating to this potential acquisition will be released when and if they become available.

About The Big Tomato

The Big Tomato is leading supplier of hydroponics & indoor gardening supplies for Denver, Colorado and the surrounding communities since May of 2001. The Big Tomato provides thousands of indoor gardeners and commercial growers with top quality hydroponic supplies at the best prices. Every one of our sales staff members is an experienced grower that is happy to help service your needs and answer any questions that you might have. We sell various types of products to include indoor gardening products, grow boxes, grow lights, hydroponic systems, ballasts, bulbs, nutrients and additives, and other high end hydroponic and gardening items. The website storefront, TheBigTomato.com was created for the discriminating indoor gardener who is looking for reliable gardening help and customer service while at the same time enjoying the great savings on the products they want to purchase. The Big Tomato website is supported by a brick-and-mortar store and an additional warehouse location for large commercial orders located in Aurora, Colorado.