CANNABIS KINETICS CORP
WESTMINSTER, CO--(Marketwired - Sep 21, 2014) - Cannabis Kinetics Corp. (
Eric Hagen, CEO of Cannabis Kinetics, commented, "The successful acquisition of the well-known The Big Tomato indoor garden supply business would significantly contribute to the enhancement and diversification of our marijuana focused portfolio. I look forward to executing a final agreement to complete this very strategic transaction in the next few weeks and continuing to seek out other attractive and synergistic opportunities in the cannabis sector."
As per certain terms of the LOI, the proposed purchase price for the business of The Big Tomato is $1,500,000 in cash (payable over two years in equal semi-annual installments of $375,000 commencing six months from the closing) and shares valued at $9,000,000 of a newly created class of preferred stock. However, it should be noted that the parties are still negotiating final terms of a definitive agreement for this potential transaction which may be materially different than currently proposed.
The closing of the transactions contemplated by the LOI is subject to completion of due diligence, the execution and delivery of a definitive purchase agreement and related documentation, and delivery of audited financial statements of The Big Tomato. There can be no assurance that any transaction will be completed as proposed or at all.
Additional details relating to this potential acquisition will be released when and if they become available.
About The Big Tomato
The Big Tomato is leading supplier of hydroponics & indoor gardening supplies for Denver, Colorado and the surrounding communities since May of 2001. The Big Tomato provides thousands of indoor gardeners and commercial growers with top quality hydroponic supplies at the best prices. Every one of our sales staff members is an experienced grower that is happy to help service your needs and answer any questions that you might have. We sell various types of products to include indoor gardening products, grow boxes, grow lights, hydroponic systems, ballasts, bulbs, nutrients and additives, and other high end hydroponic and gardening items. The website storefront, TheBigTomato.com was created for the discriminating indoor gardener who is looking for reliable gardening help and customer service while at the same time enjoying the great savings on the products they want to purchase. The Big Tomato website is supported by a brick-and-mortar store and an additional warehouse location for large commercial orders located in Aurora, Colorado.
About Cannabis Kinetics Corp. (CANK)
Cannabis Kinetics is a fully integrated cannabis management company with an office location in the Westminster suburb of Denver, Colorado. Founded and managed by experienced marijuana industry professionals, the Company has targeted various opportunities in the Colorado marijuana marketplace with a focus on the management of recreational and medical marijuana retail dispensaries, the management of licensed marijuana cultivation facilities, production and distribution of hemp and marijuana infused food & beverage and ancillary products. Additionally, the Company will provide management of retail and wholesale operations for grow stores and intends to pursue additional business opportunities within manufacturing, equipment leasing, real estate, product licensing and distribution, and other strategic acquisitions. Cannabis Kinetics anticipates expanding this business model into other select marijuana friendly states.
Cannabis Kinetics files reports with the Securities & Exchange Commission on EDGAR and anticipates continuing to file such reports. The Company's filings can be viewed at www.sec.gov, including the Company's most recent Form 8-K filing describing the Company's business operations.
Additional information regarding the Company can also be found on its website at www.CannabisKinetics.com.
Cautionary Language Concerning Forward-Looking Statements
Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate", "believe", "estimate", "expect", "intend", and similar expressions, as they relate to the company or its management, identify forward-looking statements. These statements are based on current expectations, estimates and projections about the company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and those risks discussed from time to time in Cannabis Kinetics Corp.'s filings with the Securities & Exchange Commission. As a reporting issuer with the Securities & Exchange Commission, Cannabis Kinetics Corp. files Quarterly and Annual Reports and other documents on EDGAR. We strongly urge all persons to read our filings at www.sec.gov, which are publicly available, in conjunction with this press release as we are in a highly regulated industry that requires thorough research prior to making any decision regarding a company, particularly an investment decision. In addition, such statements could be affected by risks and uncertainties related to Cannabis Kinetics Corp.'s (i) product demand, market and customer acceptance of its equipment and other goods, (ii) ability to obtain financing to expand its operations, (iii) ability to attract qualified management representatives, (iv) competition, pricing and development difficulties, (v) ability to fully implement our business plan as a result of being a reporting issuer with the Securities and Exchange Commission, and (vi) general industry and market conditions and growth rates and general economic conditions. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company cautions readers not to place undue reliance on such statements. Cannabis Kinetics Corp. does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement. Actual results may differ materially from Cannabis Kinetics' expectations and estimates. Information on Cannabis Kinetics Corp.'s website does not constitute a part of this release.
