Marijuana Company of America, Inc. Signs Letter of Intent to Acquire cDistro and cDistro.com
ESCONDIDO, Calif., May 04, 2021 (GLOBE NEWSWIRE) -- Marijuana Company of America, Inc. (“MCOA”) (OTC: MCOA), a diversified holding company with wholly owned subsidiaries and financial investments in various private and publicly traded companies across the cannabis industry, announced today that they have signed a Letter of Intent agreement to acquire Florida-based distributor cDistro and proprietor of cDistro.com(“cDistro”).
CDistro distributes CBD products, including CBD Oils, gummies and pet treats, CBD-infused personal care products, and other innovative supplies and solutions through its e-commerce platform . The Company distributes to convenience stores, specialty retailers, and consumers throughout North America.
Once consummated, MCOA expects to have cDistro become a wholly-owned subsidiary and deploy its capital to positively impact and expand its business operations within the regulated and licensed cannabis marketplace. MCOA anticipates an increase in revenues due to this acquisition.
"This potential acquisition aligns well with our strategy to continue to grow our company both organically and through acquisition," said Jesus M. Quintero, CEO of MCOA. "We see this as an inflection point as we are now capable of generating additional revenues from a distributor that sells high-margin, high-quality line of CBD and other related products. This adds to our dynamic portfolio that offers unique exposure to the global cannabis sector. MCOA looks forward to playing an integral role with our new subsidiary while still remaining focused on our other businesses including hempsmart™ premium brand of hemp-based CBD (legal cannabidiol) products."
According to Ron Russo, founder and CEO of cDistro, LLC, "This acquisition by MCOA will afford us many synergistic opportunities for us to take advantage of the underserved sector of the hemp-based cannabis industry in the U.S., and we look forward to fulfilling the critical need for more effective universal distribution solutions."
About Marijuana Company of America Inc.
Marijuana Company of America Inc. is a diversified holding company with wholly owned subsidiaries and financial investments in various private and publicly traded companies across the Cannabis industry emerging company offering unique exposure to the global cannabis sector. Marijuana Company of America Inc. (MCOA) changed its strategy in 2020 and focused on acquisitions, as well as its sales & marketing efforts of MCOA’s wholly owned hempsmart™ premium brand of hemp-based CBD (legal cannabidiol) products both domestically and internationally. Strategic decisions and long-range planning have also led the company to pivot away from farming and focus on supplying the cannabis industry across an ever-expanding market landscape.
Legal Status of Cannabis
While legalized in California for recreational and medicinal use, cannabis remains a Schedule 1 drug under the Controlled Substances Act (21 U.S.C. § 811) and illegal under the federal law.
Forward-Looking Statements
This news release contains "forward-looking statements," which are not purely historical and may include any statements regarding beliefs, plans, expectations, or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs, and results of new business opportunities and words such as "anticipate," "seek," "intend," "believe," "estimate," "expect," "project," "plan," or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations, or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K, our quarterly reports on Form 10-Q, and other periodic reports filed from time to time with the Securities and Exchange Commission.
Any definitive agreement and the closing of such an agreement is subject to completion of adequate due diligence by both Parties.
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