Cann-IS Capital Corp. Announces Qualifying Transaction with Leading European CBD/Hemp Company

TORONTO, Sept. 23, 2020 (GLOBE NEWSWIRE) -- Cann-Is Capital Corp. (the “Corporation”) (TSX-V: NIS.P) is pleased to announce that it has entered into a binding engagement agreement with CWE European Holdings Ltd., a company incorporated under the laws of Canada (“CWE”), pursuant to which the Corporation will acquire all of the issued and outstanding shares in the capital of CWE (the “Proposed Transaction”).

When completed, the Proposed Transaction will constitute the Corporation's qualifying transaction pursuant to the policies of the TSX Venture Exchange (the “Exchange”) and is subject to compliance with all necessary regulatory and other approvals and certain other terms and conditions. A comprehensive press release with further particulars relating to the Proposed Transaction will follow in accordance with the policies of the Exchange.

ABOUT CWE

CWE European Holdings Inc. (“CWE”), is a Canadian holding company with wholly-owned subsidiaries that operate a seed to sale HEMP business in Germany in compliance with applicable laws.

CWE is seeking to become one of the largest HEMP offline and online retailers, building a controlled access to Central European customers by opening retail locations in Germany. Currently CWE owns and operates nine stores in the State of Bavaria in Germany through three German subsidiaries.

The stores are operated under the brand name “HANF” in Germany.

CWE is selling an organic, health conscious lifestyle based on Hemp products, some containing CBD.

CWE has developed a private label Hemp derived CBD brand which makes up 70% of offline sales.

CWE sales for the year ended December 31, 2019 were CAD$2.5M with an EBITDA of CAD$260K (Audited German GAAP). 

ADDITIONAL TERMS

A comprehensive news release with further particulars relating to the Proposed Transaction, financial particulars, transaction structure, descriptions of the proposed management and directors of the resulting issuer, terms of any concurrent financing and sponsorship, if applicable will follow in accordance with the policies of the Exchange.

Completion of the Proposed Transaction is subject to a number of conditions including, but not limited to, Exchange acceptance and, if applicable pursuant to Exchange requirements, shareholder approval. Where applicable, the Proposed Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Proposed Transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the management information circular, filing statement or prospectus in lieu thereof to be prepared in connection with the Proposed Transaction, any information released or received with respect to the Proposed Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.