IntellaEquity Enters into Letter of Intent to Acquire CannCentral Inc.
Toronto, Ontario--(Newsfile Corp. - May 27, 2019) - For the past several months, IntellaEquity Inc. (CSE: IEQ) ("IntellaEquity" or the "Corporation") undertook a process whereby it evaluated opportunities in the cannabis industry. One promising opportunity that presented itself was in the area of utilizing e-commerce / technology in the marketing and sale of cannabis and cannabis related products.
As a result of these efforts, the Corporation is pleased to announce that it has entered into a non-binding letter of intent, dated May 14, 2019, (the "LOI") with CannCentral Inc. ("CannCentral"), an arm's length party incorporated pursuant to the laws of the Province of Ontario. Pursuant to the terms of the LOI, IntellaEquity will acquire all of the issued and outstanding securities of CannCentral (the "Proposed Acquisition"), As a result of the Proposed Acquisition, the current shareholders of IntellaEquity will own 10% of the issued and outstanding shares of the resulting company and the shareholders of CannCentral will own the remaining 90% of the shares. The Proposed Acquisition will be completed through a three cornered amalgamation between IntellaEquity, a wholly-owned subsidiary of the Corporation and CannCentral.
The closing of the Proposed Acquisition is subject to, among things, the successful completion of the Corporation's due diligence review of CannCentral and the execution of an amalgamation exchange agreement between the Corporation, a wholly-owned subsidiary of the Corporation and CannCentral. The entering into of the amalgamation agreement will be considered a fundamental change under Policy 8 of the Canadian Securities Exchange ("CSE") and, as such, will subject to all of the requirements of Policy 8 including, but not limited to, CSE and shareholder approval.
About CannCentral Inc.
Led by seasoned professionals with extensive media, technology and capital markets experience, CannCentral is positioned to become the planet's leading lifestyle influencing digital publisher and eCommerce platform for all things cannabis.
Award-winning content producers, thought provoking editorial and crave-worthy design mix with CannCentral's proprietary technology creating CannCentral.com, the leading lifestyle destination channel for those influencing culture, travel, food and arts. Expert data on strains, origins, breeds and terroirs, products and repositories combined with dynamic premium news, curated influencer lifestyle content and a matchless digital experience that geo-locates users with global dispensaries, lounges and salons will cement CannCentral.com as the authority on knowledge, products and insight for cannabis enthusiasts, patients and investors across the globe.
Through CannCentral.com, CannCentral anticipates generating revenue through traditional and emerging advertising models to achieve organic growth. The company will be targeting complementary publishers to consolidate portions of the fragmented global media landscape, resulting in accretive earnings and growth.
CannCentral.com is designed to bring knowledge and insight to cannabis users, patients and enthusiasts across the globe. The website will be free to use for all lifestyle enthusiast, patients and investors and will be available in English, German, French and Spanish. CannCentral.com will provide cannabis enthusiasts, patients and investors with online resources and functionality including but not limited to:
- official strain library;
- cannabis dispensary directory and reviews, matched to user preferences;
- cannabis products directory, reviews and purchase fulfilment;
- cannabis business and legislative news;
- cannabis fact checker; and
- loyalty programs providing ongoing incentives for engagement.
About the Corporation
IntellaEquity is a publicly traded company, it is a diversified investment and venture capital firm focused on providing investors with long-term capital growth by investing in a portfolio of undervalued companies and assets. The investment portfolio may be comprised of securities of both public and private issuers primarily in technology, artificial intelligence, blockchain and may also include investments in certain other sectors, including water, green energy, and alternative energy. Target investments shall encompass companies at all stages of development, including pre-initial public offering and/or early-stage companies requiring start-up or development capital, as well as intermediate and senior companies.
President and CEO
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Cautionary Note regarding Forward-looking Statements
This news release includes certain information and forward-looking statements about management's view of future events, expectations, plans and prospects that constitute forward-looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although the Corporation believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statement will prove to be correct. Except as required by law, the Corporation disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.
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