- Supreme Cannabis and KKE intend to develop and launch premium
cannabis products for Canada and
international markets (excluding the
United States).
- KKE develops and markets unique cannabis related products,
including the popular "Khalifa Kush" premium strain created with
Wiz Khalifa.
- Wiz Khalifa, a
globally-recognized cannabis taste maker, will provide a range of
product development services to Supreme Cannabis.
TORONTO, Dec. 6, 2018 /CNW/ - The Supreme Cannabis
Company, Inc. ("Supreme Cannabis") (TSXV: FIRE) (OTCQX: SPRWF)
(FRA: 53S1), a cannabis investment company based in Toronto, and Khalifa Kush Enterprises Canada
ULC ("KKE Canada") an affiliate of Khalifa Kush Enterprises, LLC
("KKE USA", and together with KKE
Canada "KKE"), have entered into an exclusive consulting services
agreement to develop and launch a lineup of premium cannabis
products.
KKE will provide cannabis related consulting services to Supreme
Cannabis who will be the exclusive producer of KKE branded products
in Canada and, subject to certain
approvals, international markets (other than the United States). This will include a strain
to be developed by the parties in Canada based on KKE's flagship "Khalifa Kush"
strain. Supreme Cannabis and KKE will work to develop and
commercialize a product lineup that is expected to include
pre-rolls, extracts, capsules, and cannabis oils to be sold by
Supreme Cannabis under the KKE brand.
"In 2015 I saw an opportunity to introduce the highest quality
cannabis products I love and enjoy, to the American market. KKE
USA was the first move in bringing
amazing cannabis and cannabis experiences to our customers," said
Wiz Khalifa, principal of KKE.
"Canada is a very important place
to me with the idea for 'Kush and Orange Juice' being created in
Toronto, it's the perfect start
for the international expansion of Khalifa
Kush. My team and I have spent the past year finding a
partner that shares our vision, values and passion for cannabis.
The team at Supreme Cannabis understands the importance of high
quality cannabis and how to produce high quality cannabis at scale.
I am very excited to be working with them to bring Khalifa Kush quality products to Canada and other international markets,"
continued Wiz Khalifa.
"Wiz is a globally-recognized cannabis taste maker and
connoisseur. KKE has had incredible success in U.S. adult-use
markets, establishing a brand that is synonymous with ultra-premium
quality, based on world-leading genetics. When I first met the KKE
team, I was impressed by the quality of the "Khalifa Kush" strain
and the level of care and involvement Wiz had with developing the
strain and working with the cultivators to continue to improve
quality batch-by-batch. With 7ACRES we've developed Canada's first truly high-end cannabis brand
based on our commitment to premium quality flower. We're excited to
be working with KKE Canada to build another brand with the same
commitment to quality to continue the premiumization of our brand
portfolio," said John Fowler,
President & Founder of Supreme Cannabis.
Terms of the Partnership
The arrangement includes a consulting services agreement between
Supreme Cannabis and KKE Canada and a brand advisor agreement with
Wiz Khalifa, LLC (collectively, the
"Partnership"). KKE Canada will consult on a broad range of
business and cultivation matters, including cannabis strain
selection, development and branding, consumer education and more.
The initial term of the Partnership is 5 years and may be extended
by Supreme Cannabis for an additional 5 years, subject to certain
conditions and the issuance of a number of common shares of Supreme
Cannabis to be determined at the time of the renewal.
Under the terms of the agreement, Supreme Cannabis will have a
three-year exclusive period to commercialize cannabis products
under the KKE brand internationally (excluding the United States). Expansion into
international markets will be subject to approval by KKE,
legalization of cannabis products in those international markets
and receipts of all required regulatory approvals.
As partial consideration for the Partnership, KKE Canada will
receive 5,745,000 common shares of Supreme Cannabis (the "Supreme
Shares") and a CDN$1,000,000 initial
cash payment. The issuance of the Supreme Shares has been
conditionally approved by the TSX Venture Exchange. In addition,
KKE Canada will receive annual royalty payments paid over the
course of the Partnership calculated based on the sale of products
developed pursuant to the Partnership.
About The Supreme Cannabis Company, Inc.
The Supreme Cannabis Company, Inc. (TSXV: FIRE) (OTCQX: SPRWF)
(FRA: 53S1) is a Canadian publicly traded company committed to
providing premium brands and products that proudly reflect its
consumers, people and uniquely innovative culture. The Company's
portfolio includes its wholly-owned subsidiary and flagship brand
7ACRES.
7ACRES is a federally licensed producer of cannabis operating
inside a 342,000-square-foot facility in Kincardine, Ontario. 7ACRES is dedicated to
providing consumers with a premium-quality product that recognizes
its customers are informed, discerning and value a brand and
culture that aligns with their principles. 7ACRES brand success has
been reflected in provincial supply agreements, where 7ACRES'
product is consistently listed in the highest brand category
available to recreational consumers.
The Company's growing portfolio also includes an equity
investment and long-term global distribution partnership with
Lesotho-based Medigrow for the
exporting of medical-grade cannabis oil.
The Supreme Cannabis Company has consistently set the standard
for innovation in the sector, including the design of growing
facilities and development of operational excellence metrics. We
are confident that together with our flagship brand, proprietary
technology and products, truly unique culture, and industry-leading
team, we will deliver our shareholders consistent long-term value
creation.
Stay Connected:
For more information, please visit The Supreme Cannabis Company
and 7ACRES websites. Follow us on Twitter, Facebook, or
Instagram.
About KKE
Khalifa Kush Enterprises is a groundbreaking global regulated
cannabis brand. Founded in 2015 by Wiz
Khalifa, Khalifa Kush Enterprises is quickly changing the
face of the regulated marijuana industry with the mission of
introducing high quality, highly curated products to legal
recreational and medical markets worldwide.
Forward-Looking Information
Certain statements made in this press release may constitute
forward-looking information under applicable securities laws. These
statements may relate to anticipated events or results and include,
but are not limited to, expectations regarding our regulatory
environment and potential changes in law, the growth in our
financial growth, production capacity and sales, our future
position of high quality product, our expansion of our distribution
network and other statements that are not historical facts.
Particularly, information regarding our expectations of future
results, targets, performance achievements, prospects or
opportunities is forward-looking information. Often, but not
always, forward-looking statements can be identified by the use of
forward-looking terminology such as "may", "will", "expect",
"believe", "estimate", "plan", "could", "should", "would",
"outlook", "forecast", "anticipate", "foresee", "continue" or the
negative of these terms or variations of them or similar
terminology. Forward-looking statements are current as of the date
they are made and are based on applicable estimates and assumptions
made by us at the relevant time in light of our experience and
perception of historical trends, current conditions and expected
future developments, as well as other factors that we believe are
appropriate and reasonable in the circumstances. However, we do not
undertake to update any such forward-looking information whether as
a result of new information, future events or otherwise, except as
required under applicable securities laws in Canada. There can be no assurance that such
estimates and assumptions will prove to be correct. Many factors
could cause our actual results, level of activity, performance or
achievements or future events or developments to differ materially
from those expressed or implied by the forward-looking statements,
including, without limitation, the factors discussed in the "Risk
Factors" section of the Company's Annual Information Form dated
October 2, 2018 ("AIF"). A copy of
the AIF and the Company's other publicly filed documents can be
accessed under the Company's profile on the System for Electronic
Document Analysis and Retrieval ("SEDAR") at www.sedar.com. The
Company cautions that the list of risk factors and uncertainties
described in the AIF is not exhaustive and other factors could also
adversely affect its results. Readers are urged to consider the
risks, uncertainties and assumptions carefully in evaluating the
forward-looking information and are cautioned not to place undue
reliance on such information.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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SOURCE The Supreme Cannabis Company, Inc.