BC Craft Supply Announces Signing of a Letter of Intent to Acquire Somo Industries Inc. dba Feelwell Brands

VANCOUVER, British Columbia, March 23, 2021 (GLOBE NEWSWIRE) -- BC Craft Supply Co. Ltd. (the “Company” or “BC Craft”) (CSE: CRFT) (OTC:CRFTF) (FSE:ZZD1) is pleased to announce that it has entered into a letter of intent dated March 22, 2021 to acquire Somo Industries Inc. dba Feelwell Brands (“Somo Industries”). Based in California, Somo Industries operates Clix, a licensed cannabis brand operating in the state of California. Clix is focused on bringing wellness inspired, micro-dosed, dispensed cannabis to the California market. It has two products currently for sale in California: Herbal Blended Pre-rolls and Herbal Blended Tablets. It plans to bring two more products to market later this year: Herbal Blended Flower Sticks and Hot Drink Elixirs (THC infused Golden Turmeric Milk, Chai Latte and Hot Chocolate).

Terms of the Proposed Acquisition

Under the terms of the letter of intent, BC Craft will acquire Somo Industries in return for the issuance of 30,812,320 units (“Units”) of the Company to the vendors, to be issued at a deemed value of $0.08925 per Unit. Each Unit is comprised of one common share (each a “Share”) and one-half of one (1/2) common share purchase warrant (with two half warrants being a “Warrant”), each whole Warrant is exercisable to acquire one additional Share at a price of $0.12075 for a period of two years. The closing of the acquisition of Somo Industries remains subject to the completion of due diligence reviews by both parties and the mutual agreement on the structure of the transaction in the most efficient manner.

Matthew Watters, CEO of BC Craft stated, “We are excited to pursue the acquisition of Somo Industries and look forward to integrating the Somo team into our current team. The acquisition of Somo Industries will provide BC Craft with immediate U.S based sales and distribution in the State of California in addition to opening up opportunities to expand into other legal states as they scale their operations. We will also explore producing selective products for the Canadian recreational market as there is a unique opportunity to introduce Somo’s innovate product offering to the Canadian consumer.”