Demand for cannabis products is going up but so is competition. Brands are jostling for the top spot where they can get more exposure and more revenue. In this background, International Cannabrands Inc (OTCMKTS:GEATF) has announced the signing of letter of intent with Riotus SODO LLC.
In a press release, the firm revealed that it will invest $1m to acquire a minimum of 51% of Riotus. Although the letter of intent (LOI) is non-binding, the partnership will benefit both firms greatly. The release details that the deal will “generate earnings and cash flow beginning in the second quarter of 2019.”
Bolstering company strategy
International Cannabrands Inc (OTCMKTS:GEATF) seeks to benefit from Riotus’ strong brand. According to the release, the strong brand will increase the Company’s earnings. In addition, the release details that the partnership is in line with the Company’s strategy. The Company seriously invests in “accretive cannabis distribution” in a bid to push the adoption of cannabis products.
As per the release, the Company will pay the investments in tranches spread across three months. The first tranche (60% of the total investment) will come through by September 7, 2018. The second tranche will cover 20% of the investment and will come through by October 1, 2018. Finally, the Company will complete the last 10% amount of the investment by November 15, 2018.
A good momentum for International Cannabrands Inc (OTCMKTS:GEATF)
In a recent update, International Cannabrands Inc (OTCMKTS:GEATF) says the Riotus LLC investment is on course. According to the company CEO, the company is in good momentum and they intend to make good use of it.
On the other hand, the company’s flagship product, Julian Marley JuJu Royal brand is doing well. In the update, the company notes that the brand is doing well thanks to strong foundations and bold strategy. Commenting on the update, President of JuJu Royal (a subsidiary), Travis Belcher said:
“The team is excited about the opportunity to capitalize on our recent momentum. Having a live Julian Marley tour and several new, energetic distributors provide us an amazing foundation to make a huge impact with consumers over the remainder of the year and into 2019.”