ECGI Announces Binding LOI to Acquire 8bit Cannabis Brand as Target Distribution Widens to 20 Dispensaries

Rhea-AI Summary

ECGI Holdings (OTC: ECGI) has announced a Binding Letter of Intent to acquire the key personnel and operations of Endless Consciousness, Inc., a California cannabis company. This acquisition aims to strengthen ECGI's position in the legal cannabis market as it adopts the 8bit brand, which has quickly expanded its distribution to 20 dispensaries. The CEO, Danny Wong, emphasized the credibility this acquisition adds, enhancing shareholder value. The acquisition follows a non-binding LOI from March 9, 2023, and leverages EC's proven sales track record, servicing over 250 stores across multiple states. ECGI is reorganizing to focus on cannabis-related assets.

Positive

• Acquisition of Endless Consciousness could enhance market presence in California's cannabis sector.
• 8bit brand's distribution has rapidly expanded to 20 dispensaries, indicating strong market traction.
• Involvement of experienced personnel and proven sales team from EC may drive operational success.

Negative

• None.

LOS ANGELES, March 23, 2023 /PRNewswire/ -- ECGI HOLDINGS INC. (OTC: ECGI) (ECGI or the Company), D/B/A Elite Cannabis Group Incorporated, a Nevada-based portfolio company pivoting into the legal cannabis and cannabinoid marketplace, is pleased to announce the signing of a Binding Letter of Intent (the "Binding LOI") toward the acquisition of the key personnel, intellectual property, business operations, and future business operations of Endless Consciousness, Inc. ("EC"), a California corporation involved in the legal cannabis product marketplace.

"We are very excited to move this deal forward, and assigning the 'Binding' designation to our existing relationship helps to foster credibility with our current and future capital partners, driving value for our shareholders as we ramp up commercial operations," noted ECGI CEO, Danny Wong. "EC, through their 8bit brand, has a top team, and we are now seeing that brand footprint grow. We are very well positioned to augment that growth as we bring this blue-chip team on board."

The Company announced a non-binding LOI to acquire EC on March 9, 2023. At that time, it was noted that the EC team had compiled an extensive track record of sales experience that included servicing over 250 stores and managing products reaching over 1,000 stores covering multiple states.

Management is excited to see that track record paying off as its new brand, 8bit, gains traction this year with a rapidly expanding distribution footprint, now including supplier relationships with 20 dispensaries, all of which have signed on with the brand since the Company began negotiating the acquisition.

Wong continued, "We look forward to keeping our current and prospective shareholders informed as we progress toward closing this acquisition and cementing our place as an emerging leader in the California cannabis marketplace."

About ECGI

ECGI Holdings, which plans to operate as Elite Cannabis Group, is reorganizing as an acquisition-oriented corporation with California-based targets including undercapitalized and distressed licensed cannabis assets, properties zoned for cannabis cultivation and processing, and cannabis companies operating in market sectors with nationwide expansion possibilities.

Forward Looking Statements

This release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements also may be included in other publicly available documents issued by the Company and in oral statements made by our officers and representatives from time to time. These forward-looking statements are intended to provide management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. They can be identified by the use of words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "would," "could," "will" and other words of similar meaning in connection with a discussion of future operating or financial performance. Examples of forward-looking statements include, among others, statements relating to future sales, earnings, cash flows, results of operations, uses of cash and other measures of financial performance.

Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause the Company's actual results and financial condition to differ materially from those expressed or implied in the forward-looking statements. Such risks, uncertainties and other factors include, among others such as, but not limited to, economic conditions, changes in the laws or regulations, demand for products and services of the Company, the effects of competition and other factors that could cause actual results to differ materially from those projected or represented in the forward-looking statements. Any forward-looking information provided in this release should be considered with these factors in mind. We assume no obligation to update any forward-looking statements contained in this report.

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SOURCE ECGI Holdings

FAQ

What is ECGI's recent acquisition announcement?

ECGI announced a Binding Letter of Intent to acquire Endless Consciousness, Inc. to bolster its cannabis operations.

How will the acquisition of Endless Consciousness impact ECGI?

The acquisition is expected to enhance ECGI's credibility, market presence, and operational capabilities in the cannabis sector.

What is the significance of the 8bit brand for ECGI?

The 8bit brand has quickly gained distribution in 20 dispensaries, indicating strong market traction and potential for revenue growth.

When was the Binding Letter of Intent signed?

The Binding Letter of Intent was signed on March 23, 2023.