Cannasys Inc (OTCMKTS:MJTK) reported that the letter of intent to buy Alliance Financial Network, Inc. has been dismissed. Following numerous months of due diligence and talks, the management concluded the deal would not be advantageous to its shareholders.
Earlier in March, CannaSys signed a letter of intent to buy AFN, a Colorado-based Fintech firm that offers a unique, proprietary digital deal and mobile payment offering. After numerous months of due diligence and the talks of definitive terms, they were unable to come common on numerous fundamental terms. In February, in anticipation of company’s acquisition of AFN and long-term business association, they bought 2.5 million shares of AFN for $25,000. They are planning to rescind that deal or failing that to assert all of their remedies and rights as a minority stakeholder of AFN.
Michael Tew, the CEO of Cannasys, reported that competition for financial offerings serving the cannabis market is growing daily and the cost of competing is turning prohibitive. Going forward, they intend to accelerate their launch of Citizen Toke, an offering that has shown demand, a motivated marketing and development team, and remarkable scalability. They will offer timely updates to stakeholders on this plan in the imminent period.
CannaSys is a technology solution, branding and marketing firm. Its core offerings are sent software as a service to support point-of-purchase deals and customer relationship marketing offerings. The company intends to develop, acquire, and establish strategic associations with other operations in order to bring additional offerings to market.
Grounded on the performance of the legalized cannabis industry in the last two years, it is possibly one of the fastest growing sectors in the world. Legalized cannabis sales in North America amounted $6.9 billion in 2016, a 30% jump from 2015. Sales are expected to surge to $21.6 billion by 2021 representing a 26% compound yearly growth rate.