Vancouver, British Columbia, Canada, June 9, 2022 – Global Cannabis Applications Corp. ("GCAC" or the "Company") (CSE: APP, FSE: 2FA, OTCQB: FUAPF), a leading medical cannabis chain-of-custody compliance and data platform announced the signing of a Letter of Intent (LOI) to form a Joint Venture (JV) with COMSOL PPV Telecom (“Comsol”) to open an online portal focused on providing Canadian veterans with Efixii cultivated cannabis products. New Brunswick-based Sana’a Cannabis will be the lead cultivator to provide best-in-class cannabis to veterans grown on the Efixii blockchain. This marks the first use of Efixii in the Canadian medical market by a major cultivator.
GCAC and Comsol will incorporate and operate the new entity in New Brunswick to service the $117million Canadian veteran market. GCAC will transfer its non-possession medical cannabis license and hold a 49% share, Comsol 51% of the joint venture. GCAC will configure a veteran-specific version of Efixii and integrate it into the digital storefront provided by Comsol, and provide online training, sales & marketing support. Comsol will operate the digital storefront and product fulfilment will be through Sana'a. In addition to its own products being cultivated using Efixii for both the Canadian veteran and adult markets, Sana’a will provide guidance and management support in the selection of other cannabis producers wishing to sell on the veteran storefront. All 3rd party cannabis producers must license Efxii software to be eligible to sell on the storefront. GCAC will earn a license fee for each gram of cannabis sold by the JV. The JV will earn $8.50 per gram for the veteran’s market as per Veterans Affairs’ policies. Currently, 15,000 Canadian veterans are using licensed medical cannabis.
“As a veteran, I am delighted to work with a cannabis company focused on the patient, not just the money," said GCAC CEO Brad Moore. “ Efixii redefines the cannabis supply chain. In addition, the JV data lets us measure cannabis on a per gram basis to understand cannabis efficacy and create better outcomes for the veterans.”
“We chose to work with Sana’a as its values and its focus in the medical market align nicely with the JV’s goals as it relates to the veteran community”, says COMSOL CEO Veronica Flores. “Furthermore, Sana’a has shown success in rolling out a craft quality cannabis with its first to market product, Pink Bubblegum”.
GCAC and Comsol will settle the terms of the Definitive Agreement no later than July 30, 2022, following receipt of all necessary regulatory, corporate, and third-party approvals, including the approval of the Exchange, and compliance with all applicable regulatory requirements and conditions, including execution of the License and the Sales and Distribution Agreement.
Efixii is licensed to cultivators in a SaaS model and is a free-to-use app for cannabis consumers. All cannabis sold through the Portal generates a new sales-commission revenue stream for GCAC. Efixii’s cannabis data is the intellectual property (“IP”) of GCAC. This IP creates an inherent difficulty in replicating or competing with GCAC’s cannabis datasets. GCAC defined their protocols in a provisional U.S. patent application, ‘System of Process and Tracking Cannabis Products and Associated Method Using Blockchain’ filed with the USPTO on Dec. 17, 2020.
GCAC is a global leader in designing, developing, SaaS licensing and acquiring innovative data technologies for the medical cannabis industry. The Citizen Green and Efixii platforms are the world's first end-to-end - from patient to regulator - medical cannabis data solutions. They use six core technologies: mobile applications, artificial intelligence, RegTech, smart databases, Ethereum blockchain and GCAC smart rewards. These technologies transparently disclose cannabis chain-of-custody events, enabling patients to provide crowd-sourced medical cannabis efficacy data. Driven by digital and cannabis industry experts, GCAC is focused on generating revenue from SaaS licensing its technology and acquiring high-quality cannabis datasets that improve patient outcomes and become the world’s largest cannabis efficacy data provider.
This news release may include forward-looking information within the meaning of Canadian securities legislation concerning the business of GCAC. Forward-looking information is based on certain key expectations and assumptions made by the management of GCAC. Although management of the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because GCAC can give no assurance that they will prove to be correct. Forward-looking statements contained in this news release are made as of the date of this news release. GCAC disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.