LOS ANGELES, CA / ACCESSWIRE / May 25, 2021 / Cannabis Global, Inc. (OTC PINK:CBGL) and Marijuana Company of America (OTC PINK:MCOA) today announce the funding of a state-of-the-art cannabis extract laboratory in Lynwood, California. The two companies recently created a joint venture, MCOA Lynwood Services, Inc., which is majority-owned by Cannabis Global, Inc., which will oversee operations and marketing of cannabis products produced by the venture.
‘One of our top priorities at the new laboratory is to produce a crystalline form of THC-A called ‘Diamonds’ to be sold into the wholesale and retail markets and for use on our own branded products,’ commented Arman Tabatabaei, CEO of Cannabis Global. ‘Production of cannabis Diamonds, which is often called Diamond Mining within the cannabis industry, is highly specialized requiring not only specific licensing and permitting but also state-of-the-art extraction equipment and specialized scientific personnel. With our funding now secure and the technical talent in place, we are now moving quickly to turn up operations.’
The laboratory will be operated by Cannabis Global’s subsidiary, Natural Plant Extract of California (NPE), under its Type 7 cannabis manufacturing permit. NPE will manage the laboratory and manufacturing operations with both MCOA and CBGL personnel providing consulting and business management services. The State of California limits the issuances of Type 7 permits for production of cannabis extracts utilizing volatile substances. NPE has invested heavily in building safety and the environmental retrofits required for Type 7 permitting, and recently renewed its permit for this type of cannabis extraction.
Last year, according to data published by MJBizDaily, the cannabis concentrate product category was up by more than 40%, representing one of the fastest-growing cannabis sub-categories. Pricing of products in the category also rose last year by five percent, primarily driven by increased demand as consumers continued to move away from vape products due to health concerns, and as consumers in mature markets, such as Los Angeles, are increasingly demanding more potent cannabis products.
‘Diamonds’ is a cannabis industry term for crystal formations of THC-A cannabinoids. Diamonds are produced as THC-A molecules clump together creating crystalline faceted formations that resemble diamonds. NPE plans to offer its Diamond products directly to California cannabis retailers and wholesale markets via its sister company, Northern Lights Distribution, and to enhance its own manufactured products, under the Northern Light brand name.
Mr. Tabatabai, continued, ‘Because we will be producing our own concentrates to feed our own brands while also acting as our own distributor, this new laboratory and the products it will produce opens up a host of new revenue and vertical integration opportunities for our companies.’
About Cannabis Global, Inc.
Cannabis Global, Inc. is a Los Angeles-based, fully audited and reporting Company with the U.S. Securities & Exchange Commission, trading under the stock symbol CBGL. We are an emerging force in the cannabis marketplace with a growing product and proprietary intellectual property portfolio. We are marketing and producing Comply Bag™, an innovative solution for cannabis storage, transport and tracking, and are the developer and marketer of the Hemp You Can Feel™ brand. Our subsidiary, Natural Plant Extract (NPE), is a Southern California licensed cannabis manufacturer and distributor which licenses our technologies to produce edibles for the cannabis marketplace. Cannabis Global has filed three non-provisional and multiple provisional patents for cannabis infusion and nanoparticle technologies and continues an active research & development program.
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. For more information, please visit www.sec.gov.
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SOURCE: Cannabis Global, Inc.
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