SAN DIEGO--(BUSINESS WIRE)--Medical Marijuana, Inc. (OTC: MJNA) (the “Company”), announced today that its network marketing division, Kannaway, has completed an Asset Purchase Agreement with eXfuse, LLC, dba KZ1 a Japan based network marketing company. The KZ1 acquisition will increase the sales force of the Company’s Kannaway division in Japan by approximately 1,450 individuals and the Company believes the increased sales force will greatly benefit Kannaway’s ramp up in the Japanese market. KZ1’s premium product “Focus,” containing Nootropics, which helps support cognitive function, has been well received in the Japanese market and adds to the Company’s current line of CBD, natural health and beauty products.
Commenting on the acquisition, Kannaway President Bill Andreoli stated: “The combining of these two companies’ products and distributor genealogies will have an immediate positive effect on revenue in Japan. I am so excited for Kannaway and KZ1 distributors coming together with such a strong message of Hemp & Wellness.”
Tim Scott, CEO said, “We have worked hard to increase financial efficiency and increase cash flow and the acquisition of KZ1 fits right into this strategy. With this acquisition, combining the KZ1 sales force with Kannaway’s, we expect to see a strong impact in Japan. This is just another step in our strategy to grow through acquisitions while providing premium Hemp and Wellness products to our customers worldwide.”
Under the asset purchase agreement Kannaway acquired essentially all of KZ1’s operating assets for a purchase price of $5 million and will integrate the KZ1 and Kannaway sales forces. Closing of the transaction required cash of $150,000 and conditional obligations to KZ1 totaling $4,850,000, which are payable only from royalties and sales overrides on future sales of KZ1 products and are otherwise non-recourse obligations against either Kannaway or the Company.
ABOUT MEDICAL MARIJUANA, INC.
Medical Marijuana, Inc. (OTCMarkets: MJNA) manufactures and distributes natural health, beauty and hemp-derived cannabidiol (CBD) products via e-commerce, direct sales, retail and wholesale distribution channels throughout the world. The Company operates primarily through three divisions: Medical Marijuana, Inc., HempMeds®, and Kannaway®.
Medical Marijuana, Inc.
Medical Marijuana, Inc. is the parent company of all operating divisions and operates a website to maintain an online presence, provide corporate, investor relations and educational information and news relating to the Company and its operations.
HempMeds®
HempMeds® distributes CBD products directly in the US and through wholly owned subsidiaries internationally (primarily in Mexico and Brazil). Distribution is accomplished via its online presence and its sales staff.
Kannaway®
Kannaway® is the Company’s direct selling division which started in 2014 and was the first Cannabis based direct selling company. Kannaway is the Company’s largest division and sells the Company’s Natural Health and CBD products worldwide, including, but not limited to the US, Europe, and Asia. In September 2022, Kannaway purchased the assets of Mfinity Global LLC, a direct-selling organization focused on promoting Natural Health products. The Mfinity products have now been added to the Kannaway line of products.
FORWARD-LOOKING DISCLAIMER:
This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Medical Marijuana, Inc. to be materially different from the statements made herein.
FOOD AND DRUG ADMINISTRATION (FDA) DISCLOSURE:
These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease.
LEGAL DISCLOSURE:
Medical Marijuana, Inc. does not sell or distribute any products that are in violation of the United States Controlled Substances Act or any state or federal law.
