Cann American Corp. Acquires New Subsidiary

Rhea-AI Summary

Cann American Corp. (OTC Pink: CNNA) announced the acquisition of Hourglass Enterprises LLC, an Oklahoma-based company focused on packaging and labeling for the cannabis industry. This strategic move follows the Oklahoma Medical Marijuana Authority's implementation of the Metrc track-and-trace system, effective April 30, 2021. The company aims to leverage Hourglass's readiness for compliance, capitalizing on a significant market opportunity as many local businesses struggle to adapt. CEO Jason Black expressed optimism about breaking into the rapidly growing Oklahoma market.

Positive

• Acquisition of Hourglass Enterprises enhances market presence in Oklahoma's cannabis industry.
• Hourglass is positioned to capitalize on the Metrc system, potentially leading to increased market share.
• Opening opportunity in a rapidly growing market identified by extensive due diligence.

Negative

• Previous deal with another Oklahoma company collapsed due to the unexpected death of a managing member.
• Reliance on successful integration of Hourglass to achieve anticipated market advantages.

CLOVERDALE, CA / ACCESSWIRE / May 12, 2021 / Cann American Corp. (OTC Pink:CNNA), the Company, is pleased to announce the acquisition of an Oklahoma-based subsidiary.

On April 5, 2021 the Company's board approved the acquisition of Hourglass Enterprises LLC. Hourglass Enterprises is an Oklahoma-based company specializing in packaging and labeling for the Oklahoma cannabis industry with a particular focus on compliance with The Oklahoma Medical Marijuana Authority's (OMMA) recently adopted Metrc track-and-trace system.

In February of 2021 OMMA announced the deployment of the Metrc system would be required for all Oklahoma-based cannabis processors to go into effect in April 30 of 2021. You can learn more about OMMA and Metrc here: https://www.metrc.com/oklahoma

The Company, having performed extensive due diligence on the Oklahoma cannabis industry, identified that there would be a significant opportunity to capitalize on the new Metrc system, as many companies were not prepared to adapt to the new guidelines.

The Company believes it can seize considerable market share through packaging as Hourglass is among a few companies, who's management had already previously adapted their labeling and packaging materials for full deployment under the Metrc system.

The Company anticipates additional updates shortly on the new Oklahoma endeavor and its plans for operations.

Stated CEO, Jason Black: "I'm very pleased that we've finally been able to break into the Oklahoma market, which is among the fastest growing in the US. We had previously announced an LOI with another Oklahoma based company. Unfortunately, one of the managing members passed away unexpectedly, which left the deal unable to move forward. Fortunately for the Company, we were able to come across the Hourglass deal through the network of contacts we had established and believe this will actually prove to be much more beneficial, in the long run, than the previous endeavor. We'll continue to keep shareholders updated as things progress."

Forward-Looking Statements:

This press release contains forward-looking statements. The words "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "could," "target," "potential," "is likely," "will," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking statements. The Company has based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Some or all of the results anticipated by these forward-looking statements may not be achieved. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

CONTACT:
Jason Black
contact@cannamericancorp.com

SOURCE: Cann American Corp.

View source version on accesswire.com:
https://www.accesswire.com/646977/Cann-American-Corp-Acquires-New-Subsidiary

FAQ

What is the significance of Cann American Corp's acquisition of Hourglass Enterprises?

The acquisition allows Cann American Corp to enhance its market presence in Oklahoma's cannabis industry and capitalize on compliance with the Metrc system.

When did Cann American Corp announce the acquisition of Hourglass Enterprises?

The acquisition was approved by Cann American Corp's board on April 5, 2021.

How does the Metrc system impact Cann American Corp and Hourglass Enterprises?

The Metrc system requires compliance for all Oklahoma cannabis processors, creating a market opportunity for Hourglass, which is already prepared for these guidelines.

What challenges did Cann American Corp face before acquiring Hourglass Enterprises?

The company faced a setback when a prior deal with another Oklahoma-based company fell through due to the death of a managing member.

What future updates can shareholders expect regarding the Oklahoma market?

Cann American Corp anticipates providing further updates on its new Oklahoma operations and plans following the acquisition.