Blackhawk Signs Term Sheet to Acquire KO Logistics LLC, a California-based Distribution Centre and Expands into the US Cannabis Market
Calgary, Alberta--(Newsfile Corp. - August 27, 2019) - Blackhawk Resource Corp. (CSE: BLR) (the "Corporation" or "Blackhawk"), is pleased to announce that it is taking its first step into the US cannabis and CBD market with the acquisition of KO Logistics LLC in Shasta Lake, California ("KO Brands"). Blackhawk views an investment in KO Brands as another opportunity for its shareholders to be a part of a fragmented and fast-growing US cannabis market. Blackhawk, through its wholly-owned Delaware subsidiary, and KO Brands have entered into a term sheet ("Term Sheet") dated August 21, 2019, to review a potential acquisition. Subject to completion of due diligence, Blackhawk expects to sign a definitive agreement to acquire KO Brands in the next thirty days.
"I am excited about this acquisition," says Frederick Pels, CEO of Blackhawk. "This is a significant deal for Blackhawk as we not only add a revenue-generating business to our portfolio, but one led by an established operator with a great plan to take advantage of the ever-growing market in California. As an investment issuer, Blackhawk is in a unique position to take advantage and make investments in numerous situations that we feel will prove very profitable for shareholders and we plan to take full advantage of it over the coming months."
"We are very excited here at KO about this acquisition," says Shannon Miller, CEO of KO Logistics. "I believe Blackhawk to hold a very similar mission and I eagerly anticipate showing investors increased shareholder value."
Following completion of the acquisition, KO Brands will form part of Blackhawk's existing portfolio of investments in the retail cannabis sector. KO Brands existing management will retain responsibility for overseeing day-to-day operations, with Blackhawk assuming overall control of the business. Blackhawk will leverage contacts previously established by Green Room's management team to improve and expand KO's product and client base in the U.S. Currently Blackhawk holds interests in Noble Line Inc. a US based on line CBD retailer, and a number of Canadian based retail cannabis license applicants.
Readers are cautioned that the Term Sheet entered into with KO Brands does not set forth definitive terms for the potential transaction, nor have such terms been finalized. Completion of the acquisition of KO Brands remains subject to a number of conditions including, but not limited to, satisfactory completion of due diligence, negotiation of definitive agreements in respect of the transaction, and receipt of any required regulatory approvals. The acquisition cannot be completed until these conditions are satisfied, and there can be no assurance that the acquisition will be completed at all.
About KO Brands
KO Brands is the parent company which owns "KnockOut Brands". KO Brands currently holds a state Licenced distribution Centre in Shasta Lake, California. Producing some of the highest quality cannabis products from its own brands as well as white labeling for some of the largest brands in the USA. The products range from pre-rolled cannabis, wood tipped cigars, CBD and THC freezies, dried flower, and even its own patent pending packaging. KO Brands has secured its position as a leader of both supply and innovation within the growing US cannabis sector. Providing high-quality products throughout California and packaging innovation all over the United States. KO Brands consistently strives in all jurisdictions where it operates or seeks to operate, bringing professionalism and socially responsible distribution of cannabis and cannabis products.
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Neither the Canadian Securities Exchange nor its Regulatory Services Provider (as that term is defined in policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information set forth in this news release contains forward-looking statements or information ("forward-looking statements"), including details about the proposed acquisition of KO Logistics. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Corporation's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, operational risks, competition from other industry participants, stock market volatility, the risks that the individuals will not proceed with the appointment and resignation. Although the Corporation believes that the expectations in its forward-looking statements are reasonable, its forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. Risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our public disclosure documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, the Corporation does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
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