Bhang Provides Corporate Update

MIAMI, Oct. 05, 2020 (GLOBE NEWSWIRE) -- Bhang Inc. ("Bhang" or the "Company") (CSE: BHNG) (OTCQB: BHNGF), a global cannabis CPG brand company with an award-winning portfolio of products, provided today a corporate update that includes the divestment of the Company’s indirect interest in Red Ace, LLC (“Red Ace”) and the grant of equity incentive awards to certain directors, officers and consultants.

Divestment of Red Ace

Bhang’s wholly owned subsidiary, Bhang Corporation (“Bhang Corp.”), completed a divestment of its membership interest in Red Ace in an effort for Bhang to re-focus resources on its core business of cannabis-infused gourmet chocolate products. The transaction was completed pursuant to a membership interest purchase agreement (the “Purchase Agreement”) whereby Bhang Corp. sold, assigned and transferred 100% of its membership interest in Red Ace in exchange for gross proceeds of US$5,000 and the assumption by the purchaser of all liabilities associated with Red Ace.

In connection with the Purchase Agreement, the Company also entered into a settlement agreement and mutual release (the “Settlement Agreement”) with a former owner of Red Ace (the “Former Owner”), among others, where the parties agreed to release and discharge each other of any claims related to prior business dealings involving Red Ace. Pursuant to the Settlement Agreement, the Former Owner also agreed, for no consideration, to transfer to the Company all right, title and interest in and to 2,379.122 multiple voting shares of Bhang that were acquired by the Former Owner at the time of the initial Red Ace sale transaction.

Equity Incentive Awards

On October 2, 2020, Bhang granted options to purchase an aggregate of 1,300,000 subordinate voting shares of the Company (the “Stock Options”) to certain directors and officers of the Company. 1,000,000 Stock Options are exercisable until October 1, 2023 at a price of $0.075 per share and the remaining 300,000 Stock Options are exercisable until October 1, 2023 at a price of $0.10 per share.

On October 2, 2020, Bhang granted 2,750,000 restricted stock units of the Company (the “RSUs”) to certain directors, officers and consultants of the Company. Upon issuance, 1,750,000 of the RSUs vested immediately and 1,000,000 of the RSUs shall vest on October 2, 2021. Upon vesting, the subordinate voting shares underlying the RSUs are issued at a deemed price of $0.075 per share.