MONTREAL, March 26, 2019 /CNW/ – Cannara Biotech Inc. (“Cannara” or the “Company”) (CSE: LOVE) (FRA: 8CB), an emerging vertically integrated cannabis company focused on cultivation and cannabis-infused products, today announced its subsidiary Global shopCBD.com Inc. (“shopCBD.com”) has closed private rounds of financing for aggregate proceeds of $8,865,849.15 (the “Offering”). Cannara remains the majority shareholder of the U.S. based online e-commerce platform with an approximately 61% ownership position.
“As the hemp CBD consumer markets continue to evolve, what is increasingly clear is the health and wellness segment is becoming more prominent,” said Zohar Krivorot, President and CEO of Global shopCBD.com. “The high level of investor interest in participating in shopCBD.com underscores the potential of both CBD products overall and moreover, a best-in-class online platform to serve this market.”
With the recent passing of the 2018 Farm Bill in the U.S., CBD represents a developing sector with many vendors seeking national reach to U.S. customers. ShopCBD.com’s strategy is to offer a wide variety of products from leading CBD brands, with competitive pricing and delivery times across the U.S. The rise in popularity for CBD products is driven by consumers seeking natural-based health & wellness solutions to treat various ailments from inflammation, anxiety to insomnia amongst many others. As a result, the hemp-derived CBD market has been estimated to reach US $22 billionby 2022.
Insiders of the Company have subscribed for approximately 21% of the outstanding share capital of shopCBD.com, accordingly such subscription was a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). ShopCBD.com intends to rely on the exemptions from the requirements of MI 61-101 including that the transaction was exempt from the formal valuation requirements of MI 61-101 as none of the securities of shopCBD.com are listed on a prescribed stock exchange.