International Cannabrands Inc (CNSX:JUJU.A) (OTCMKTS:GEATF) has announced that it has signed a “non-binding” letter of intent (LOI) to invest $1 million to acquire a minimu of 51% of Riotus SODO LLC. The company is one of the operating units of Riotus LLC. International Cannabrands seeks to exploit the partnerships that Riotus has towards a faster growth in cultivation, extraction, branding, manufacturing and distribution of the products in the market.
As per the release, the investment in Riotus is in line with the company’s strategy of “investing in accretive cannabis companies within distribution, branding and attractive choke points in the cannabis value chain.
The release reports that the company expects to begin generating cash flow from the deal in the beginning of the second quarter of 2019. As a result, the report expects a material increase in the company’s earnings and cash flow. The company is reportedly confident about the positive numbers that it expects from the deal since Riotus has a “strong brand and distribution relationships which the company intends to leverage going forward.”
JuJu Royal to Expand Distribution in Key Markets
Juju Royal is one of the leading brands under the International Cannabrands ambit. In a recent press release, International Cannabrands revealed the plans for the expansion of its distribution relationships in several key markets for the subsidiary.
To that end, the release has added that the Juju Royal team “has planned an extremely active third and fourth quarter of 2018. Per the statement, Juju Royal is investing in Project Irie which included multiple sales and marketing initiatives to bolster sales, profitability and new customer access to the brand.
In-store brand events
The statement has detailed that the subsidiary appointed new sales team members and brand ambassadors to approach retail stores interested in “in-store brand events”. The events will be focused on “special product discounts”, potential appearances by Julian Marley and VIP only performances by Julian Marley. The release adds that there will be in-store brand messaging and promotions that will targeted at both the existing and potential markets.