Business
Medical Marijuana, Inc. Kannaway Division Completes Acquisition of KZ1 Network Marketing Company
Medical Marijuana, Inc. Kannaway Division Completes Acquisition of KZ1 Network Marketing Company.
About this update from Medical Marijuana, Inc.
[{"type":"text","content":"\nMedical 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.\n\n\nCommenting 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.”\n\n\nTim 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.”\n\n\nUnder 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.\n\n\nABOUT MEDICAL MARIJUANA, INC.\n\n\nMedical 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., Hemp...