LOS ANGELES, CA / ACCESSWIRE / November 10, 2021 / Cannabis Global, Inc. (OTC PINK:CBGL), an innovation-oriented company investing in disruptive cannabis technologies, today announces it has entered into a distribution agreement with Humboldt Bliss to distribute the Company’s Comply Bag®, cannabis transport system with integrated smartphone track and trace app. As part of the agreement, the Company also also granted Humboldt Bliss an option to purchase a controlling interest in Ethos Technology LLC, dba Comply Bag®, a wholly-owned subsidiary of Cannabis Global, for $4 million, which controls the products and the associated intellectual property.
David Welch, the managing partner at DRWelch, a Los Angeles-based law firm specializing in regulatory compliance and intellectual property issues with a strong specialization in the cannabis industry, who serves as general counsel of Humboldt Bliss, commented, “We see strong possibilities relative to Comply Bag® especially relating to what most people in the cannabis industry believe will be an upcoming national market for cannabis. Comply Bag® is the best way to stop diversion of cannabis from the legal market into the illicit market and we believe likely to become a standard requirement for Government approved cannabis facilities. As more licensed and legal cannabis commerce occurs, the secure tracking and tracing of cannabis shipments will become a vital interest of both corporations and regulatory agencies.”
Comply Bag® utilizes proven security, tamper resistance, and tracking features that will allow cannabis companies to transport products as safely as large financial institutions transport cash and marketable securities. The product includes the integration of the METRC applications programming interface (API) into a custom smartphone app that will allow cannabis shippers and receivers to scan shipments with the information being integrated directly into the leading cannabis track and trace system. At least 15 states, including California, mandate the use of METRC.
Arman Tabatabaei, CEO of Cannabis Global commented, “With our first shipments of Comply Bag® already in our Los Angeles warehouse, we believe the distribution of this innovative product line can begin immediately. Over the coming weeks, we will be working with the Humboldt Bliss team to add more features and functions to the smartphone app, which is at the heart of the Comply Bag® transport system.”
The Agreement grants Humboldt Bliss as the exclusive distributor for North and Central America, the Caribbean, and Europe, based on specific first rights of refusal outlined in the Agreement. In addition, the Purchase Option allows Humboldt Bliss to acquire a 51% controlling interest in Ethos Technologies and contains specific anti-dilution and first rights of refusal provisions. The Company will file the complete agreement on Form 8-K with the Securities and Exchange Commission, to be accessed at www.sec.gov.
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