Cann American Corp. Announces Restructured Acquisition

Rhea-AI Summary

Cann American Corp. (OTC PINK:CNNA) announced the restructuring of its acquisition of Hourglass Enterprises LLC on October 14, 2021. The previous acquisition, initiated on May 12, 2021, was rescinded due to legal issues surrounding Metrc's track and trace system in Oklahoma. With the litigation now less of a concern, Hourglass will expand its operations in packaging and labeling for the cannabis industry in Oklahoma. The company anticipates this acquisition will enhance revenue streams and strengthen its presence in the growing Oklahoma cannabis market.

Positive

• Restructured acquisition of Hourglass Enterprises expands operations into the Oklahoma cannabis market.
• The acquisition is expected to generate consistent revenue streams.
• Hourglass is poised to assist medium to large operators with packaging and labeling, enhancing product visibility.

Negative

• Initial acquisition was rescinded due to pending litigation related to Metrc's track and trace system.
• Continued reliance on legal outcomes could pose future risks to Hourglass's operations.

CLOVERDALE, CA / ACCESSWIRE / October 14, 2021 / Cann American Corp. (OTC PINK:CNNA), the "Company", is pleased to announce the Company has restructured its acquisition of Hourglass Enterprises LLC.

On May 12, 2021, we issued a press release titled "Cann American Corp. Announces New Subsidiary." Following the acquisition of Hourglass Enterprises LLC, which was to focus on packaging and labeling under newly implemented Metrc track and trace systems, an announcement was released by Metrc on May 20, 2021, that an Oklahoma cannabis operator sued the state of Oklahoma over the implementation of Metrc's track and trace system and that operator was granted a temporary restraining order by the courts. Due to the pending litigation, the Company's belief that the suit may prevail, and Hourglass Enterprises LLC's reliance on Metrc as a standardized system, we rescinded the Agreement and unwound Hourglass as a subsidiary of the Company on May 24, 2021.

Since that time, Cann American brought on Brad Hanger, the owner of Hourglass and Hanger Consultations, as a Director of the Company and the parties have worked over several months to recalibrate the operations of Hourglass and bring the Company back under Cann American. With there no longer being a reliance on the Metrc track and trace system for the foreseeable future, Hourglass is now engaging in a broader but less restrictive packaging, labeling, and merchandising of products for the Oklahoma cannabis industry.

Hourglass is already assisting operators in medium to large scale labeling of extract jars, pre-roll packaging and other various branding needs to get quality products onto dispensary shelves throughout Oklahoma.

Cann American believes the acquisition of Hourglass will generate consistent revenue streams and provides the Company with a significant footprint in the Oklahoma cannabis market, in line with its long term expansion strategy into viable markets beyond California.

Stated Cann American Corp. CEO, Jason Black: "I'm excited that our board was able to reimagine our approach to the Hourglass subsidiary and begin operations quickly. Oklahoma is among the fastest growing and most dynamic cannabis markets in the US. This acquisition allows Cann American to network with an array of Oklahoma operators which will certainly create additional revenue generating opportunities going forward."

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: contact@cannamericancorp.com
Twitter: https://twitter.com/CNNA_OTC

SOURCE: Cann American Corp.

View source version on accesswire.com:
https://www.accesswire.com/668094/Cann-American-Corp-Announces-Restructured-Acquisition

FAQ

What is the recent development for Cann American Corp and Hourglass Enterprises?

Cann American Corp. has restructured its acquisition of Hourglass Enterprises LLC to allow for broader operations in the Oklahoma cannabis market.

How will the acquisition of Hourglass Enterprises impact Cann American Corp. (CNNA)?

The acquisition is expected to generate consistent revenue streams and strengthen Cann American's footprint in the growing Oklahoma cannabis industry.

What were the reasons for rescinding the original acquisition of Hourglass Enterprises?

The original acquisition was rescinded due to litigation involving the Metrc track and trace system, which affected Hourglass's operational plans.

What operational changes are happening at Hourglass Enterprises following the acquisition restructuring?

Hourglass is now engaging in broader packaging and labeling operations for the Oklahoma cannabis industry without reliance on the Metrc system.