Cannabis Global CEO Comments on Minor Cannabinoid Market in Light of California's AB 45 Hemp and Cannabis Bill

Rhea-AI Summary

Cannabis Global (OTC PINK:CBGL) announces its support for California's AB 45, signed by Governor Gavin Newsom, which redefines THC and its impact on the cannabis market. The company has heavily invested in minor cannabinoids, particularly THC-V, and developed patented infusion technologies. AB 45 prohibits sales of certain cannabis products exceeding 0.3% THC, enhancing market conditions for regulated cannabis operations. This regulatory change aligns with Cannabis Global's compliance strategies and aims to strengthen its foothold in the legal cannabis industry.

Positive

• Investment in R&D for minor cannabinoids, especially THC-V.
• Successful non-provisional patent filings for cannabinoid technologies.
• Support for AB 45 enhances competitive advantages in regulated markets.

Negative

• Competitive threats from unregulated markets selling Delta-8 THC and similar products.
• Market challenges due to potential confusion over product legality.

LOS ANGELES, CA / ACCESSWIRE / October 13, 2021 / Cannabis Global, Inc. (OTC PINK:CBGL), an innovation-oriented company investing in disruptive cannabis-related technologies, today releases comments from corporate CEO Arman Tabatabaei, relating to the recent signing of AB 45 by Governor Gavin Newsome, and its potential effects on the market for minor cannabinoids, especially tetrahydrocannabivarin (THC-V).

"Over the past two years, Cannabis Global has invested heavily in research and development programs for minor cannabinoids, especially THC-V. We have focused on creating novel methods to infuse both Tetrahydrocannabinol (THC) and the minor cannabinoids into foods and beverages. Our investments have yielded strong results, especially relating to our non-provisional patent filings for cannabinoid nanoparticles and fibers containing only cannabinoids and food-grade substances and for non-GMO life form production of cannabinoid glycosides. Additionally, we have developed other techniques and methods, such as our new live rosin and live resin infusions, among others, which we have decided to retain as trade secrets.

In our opinion, much of our efforts were at risk as companies in the non-regulated and unlicensed markets have begun to introduce products into the California market containing Delta-8 THC and minor cannabinoids, such as THC-V, derived through the manipulation of industrial hemp isolates. While the safety and legality of these products is certainly up for debate, these products produced outside of the regulated cannabis environment in California posed a competitive challenge for our Company.

Thus, we are pleased to see that State of California legislators have passed AB 45, and Governor Newsome signed the bill into law, with the provisions becoming effective immediately. Under AB 45, Delta-8 THC, as well as THCA, Delta-9, and Delta-10 THC, are included within the statutory definition of "THC" or "THC or comparable cannabinoid", along with any other cannabinoids deemed by the State to be necessary for inclusion under the definition. The results of the re-definition of "THC", in our opinion, and in the option of at least several attorneys who specialize in cannabis, is that AB 45 will prohibit the sale of products within the State that contain hemp extracts that exceeds 0.3% in "THC," as now more broadly defined within California.

Since most products containing minor cannabinoids made from whole hemp plants infusions contain cannabinoids such as THCA, CBG, CBC, etc. in concentrations greater than 0.3%, such products would be prohibited from sale outside of California's regulated licensed cannabis regime, even though most hemp products conform with Federal law requiring products to contain not more than 0.3% [delta-]9-THC.

Considering the investments our Company and our investors have made in minor cannabinoid infusion technologies, acquiring and maintaining our manufacturing and distribution licenses with the State of California and local jurisdictions, and building a compliant manufacturing facility, we welcome this reclassification of hemp-based products that contain minor cannabinoids and believe the provisions of AB 45 will be conducive to our continued investment in California and the in licensed and regulated California cannabis marketplace."

About Cannabis Global, Inc.

Cannabis Global, Inc. is a Los Angeles-based, fully audited and reporting Company with the U.S. Securities & Exchange Commission, trading under the stock symbol CBGL. We are an emerging force in the cannabis marketplace with a growing product and proprietary intellectual property portfolio. We are marketing and producing Comply Bag™, an innovative solution for cannabis storage, transport and tracking. Our subsidiary, Natural Plant Extract (NPE), is a Southern California licensed cannabis manufacturer and distributor which licenses our technologies to produce edibles for the cannabis marketplace. Cannabis Global has filed three non-provisional and multiple provisional patents for cannabis infusion and nanoparticle technologies and continues an active research & development program.

Forward-Looking Statements

This news release contains "forward-looking statements" which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as "anticipate", "seek", intend", "believe", "estimate", "expect", "project", "plan", or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.

Corporate contact:

Arman Tabatabaei
IR@cannabisglobalinc.com
+1-(310)-986-4929

IR Contact:

Stuart Smith
https://www.smallcapvoice.com/
ssmith@smallcapvoice.com

SOURCE: Cannabis Global, Inc.

View source version on accesswire.com:
https://www.accesswire.com/667763/Cannabis-Global-CEO-Comments-on-Minor-Cannabinoid-Market-in-Light-of-Californias-AB-45-Hemp-and-Cannabis-Bill

FAQ

What is AB 45 and how does it affect Cannabis Global (CBGL)?

AB 45, signed by Governor Newsom, redefines THC in California, impacting products made with minor cannabinoids and creating a more regulated market, which benefits Cannabis Global.

What advancements has Cannabis Global (CBGL) made in minor cannabinoids?

Cannabis Global has invested significantly in R&D for minor cannabinoids, developing patented infusion methods and technologies.

How does AB 45 impact the sale of hemp products in California?

AB 45 prohibits the sale of hemp products exceeding 0.3% THC, which aligns with Cannabis Global's focus on compliance and enhances market conditions for licensed products.