LOS ANGELES, CA / ACCESSWIRE / April 20, 2021 / Cannabis Global, Inc. (OTC PINK:CBGL), an innovation-oriented company involved in disruptive areas of the cannabis and hemp-related industries, today announces a substantial increase in its assets base and equity via a quarterly filing with the Securities & Exchange Commission. For the quarter ending February 28, 2021, the Company reported $11.9 million in assets, an increase of 275% over the previous quarterly period, which ended on November 30, 2020.
Equity increased 397% from a deficit in stockholder's equity of $1.4M for the fiscal year ended August 31, 2020, to a positive equity position of $4.3M on a consolidated basis for the second quarter ended February 28, 2021, leading to an overall strengthening of the Company's balance sheet.
The increase is primarily a result of the Company gaining a controlling position in Natural Plant Extract of California, a licensed cannabis manufacturing and distribution company located in Lynwood, California, a suburb of Los Angeles. The $11.9 million in assets does not reflect the current value of Cannabis Global's investment position in Marijuana Company of American (OTC: MCOA), which at 650 million shares, was valued, as of the close of trading on April 16, 2021, at an additional $3.8 million. This investment in MCOA's common shares is conservatively accounted for at its historical cost of $650,000 in accordance with Generally Accepted Accounting Principles (GAAP).
'We are very proud of our growing cannabis-related asset base, which will propel our future growth,' commented Arman Tabatabaei, CEO of Cannabis Global. 'We are expecting substantial growth in revenues over the coming quarters as we begin to expand our Lynwood operations. With the California cannabis market expected to grow from $4.4 billion in 2020 to more than $7 billion in 20221, we view our timing for launching our cannabis edibles, flower, and other products under our newly developed Northern Lights brand as optimal. Our investors should expect to see our revenue rise substantially over the coming quarterly financial periods. As legalization sweeps the United States.'
Cannabis Global recently acquired a controlling interest (56.5% ownership) in Natural Plant Extract (NPE), which operates a licensed cannabis manufacturing and distribution business in Lynwood, California, holding a Type 7 California Manufacturing and a distribution license, allowing for cannabis product distribution anywhere in the state. Having a controlling interest in NPE means that the Company will be allowed for accounting purposes to consolidate the revenue and assets of NPE on its financial statements.
NPE sold its retail delivery license last year to one of the top five cannabis delivery services in the state of California. The delivery service is a current tenant of NPE's Lynwood facility and has conditionally approved sourcing some of its products through NPE's distribution license. This should lead to a substantial increase in revenues during Q3 2021.
In addition to business opportunities available from product manufacturing and distribution to all parts of the State of California, Cannabis Global also sees strong synergies between the NPE operations and its developing technologies in the areas of secure cannabis transport, cannabis infusions, and all-natural polymeric nanoparticle technologies. Thus far, the Company has filed six provisional patents, three non-provisional patents and has recently announced its Comply Bag™ secure cannabis transport system with integrated track and trace capabilities via smartphones that will be available soon.
1Source: CB Insights, State Reports and New Frontier Data
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. We are also the developer and marketer of the Hemp You Can Feel™ brand, and the corporation's subsidiary, Natural Plant Extract, 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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