Thoughtful Brands Merger with Franchise Cannabis Terminated

Rhea-AI Summary

Thoughtful Brands Inc. announced the termination of its letter of intent with Franchise Cannabis Corp. for a merger, originally disclosed in January. In connection with this termination, Thoughtful Brands will pay FCC $100,000 and issue 5,000,000 common shares valued at $0.05 per share, subject to a holding period. Despite the merger's cancellation, the European joint venture with FCC remains intact, allowing the company to continue its product development for the European market. Thoughtful Brands plans to reinstate trading of its shares on the Canadian Securities Exchange under the ticker 'TBI.'

Positive

• Continuation of the joint venture with FCC enables tailored product development for European consumers.
• Plans to reinstate trading on the Canadian Securities Exchange under existing ticker 'TBI'.

Negative

• Termination of the merger with FCC may indicate strategic setbacks.

VANCOUVER, BC / ACCESSWIRE / March 8, 2021 / Thoughtful Brands Inc. (CSE:TBI)(FSE:1WZ1)(OTCQB:PEMTF) (the "Company" or "Thoughtful Brands) announces that the letter of intent with Franchise Cannabis Corp. ("FCC"), previously announced in January, has been terminated. The previously announced European joint venture with FCC will continue and allow the Company to launch and tailor its products to European consumer demands.

In connection with termination of the merger transaction with FCC, the Company has agreed to pay FCC $100,000 in cash and to issue FCC 5,000,000 common shares of the Company at a deemed value of $0.05 per share. The common shares will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.

Following termination of the transaction, the Company intends to apply to the Canadian Securities Exchange for the reinstatement of trading in its common shares under the existing ticker symbol "TBI".

About Thoughtful Brands Inc.
Thoughtful Brands Inc. is an eCommerce direct-to-consumer CBD and natural health products company that researches, develops, markets and distributes products in North America.

ON BEHALF OF THE BOARD OF DIRECTORS
THOUGHTFUL BRANDS INC.
Ryan Hoggan
Chief Executive Officer

For further information, readers are encouraged to contact Joel Shacker, President at (604) 423-4733 or by email at info@thoughtful-brands.com.

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.

Cautionary Note Regarding Forward-Looking Statements:
All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to the Company within the meaning of applicable securities laws, including with respect to its plans to acquire additional revenue-producing natural health product brands and operations in both Europe and North America with the goal of establishing an international distribution network utilizing its eCommerce technology platform. The Company provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited those identified and reported in the Company's public filings under the Company's SEDAR profile at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

SOURCE: Thoughtful Brands Inc.

View source version on accesswire.com:
https://www.accesswire.com/634199/Thoughtful-Brands-Merger-with-Franchise-Cannabis-Terminated

FAQ

What happened with Thoughtful Brands and Franchise Cannabis Corp.?

Thoughtful Brands terminated its merger agreement with Franchise Cannabis Corp. but will continue its European joint venture.

What are the financial implications of the termination with FCC for PEMTF?

Thoughtful Brands will pay FCC $100,000 and issue 5,000,000 common shares at a deemed value of $0.05 each.

How will the termination of the merger affect Thoughtful Brands' stock?

The termination may affect investor sentiment but the company intends to reinstate trading under the ticker 'TBI'.

What does the joint venture with FCC mean for Thoughtful Brands' future?

The joint venture allows Thoughtful Brands to tailor its products to European demands, potentially enhancing market presence.