VANCOUVER: Icanic Brands Company Inc., a multi-state brand operator in California and Nevada, has entered into a Letter of Intent (LOI) to acquire THC Engineering LLC, a company focused on building one of a kind automation technology in the rapidly expanding cannabis manufacturing industry.
“Technology has always been a key focus and one of the three pillars that allows Icanic to truly differentiate itself and target a superior gross margin profile,” said Brandon Kou, CEO of Icanic.
“The opportunity to acquire THC Engineering and its world class team was something that we could simply not pass up. This agreement reinforces our commitment to technology by bringing on a team that has built one of a kind manufacturing equipment for the likes of Tesla, Genentech and Johnson & Johnson.
“The journey began when the Company set out to try and tackle a huge issue in the industry and with the successful creation and implementation of the automated pre roll technology, we are thrilled to welcome the THC Engineering team to the Icanic family.
“As we continue to build out our portfolio of technology that drives efficiency and increased margins, the THC Engineering team will be invaluable to our success. “
For over the past two years, Icanic Brands Company has spent considerable time reviewing other existing preroll manufacturing technologies across the globe and visiting with several developers of systems currently under development and feel very confident that the IP being acquired as a result of this acquisition is in a class of its own in terms of its precision filling, manufacturing rate and ability to significantly immediately impact cost of goods.
“The partners at THC Engineering are excited about joining the Icanic team”, says THC Engineering CEO, Kenji Sytz.
“Since the start of our relationship, Icanic has shown us their commitment to producing the highest quality products while being conscious of manufacturing costs. A couple of years ago, THC Engineering set out to revolutionize the way cannabis products are made by bringing advanced automation to the cannabis world. Icanic shares this vision and we look forward to our future with them.”
Under the terms of the LOI, in consideration for THC Engineering, Icanic will pay a consideration of $1.75 million in Icanic Brands shares. THC Engineering will also have the opportunity to earn additional Purchaser Shares through milestone earnouts as follows: (i) $500,000 of Purchaser Shares upon completion of milestone 1 (ii) $1.75M in Purchaser Shares upon completion of milestone 2 and (iii) $500,000 of Purchaser Shares upon completing of both milestones 1 and 2.
Icanic Brands Company, Inc. is a leading cannabis branded products manufacturer based in California & Nevada, the largest and most competitive cannabis markets in the world. The company’s mission is to make cannabis safe and approachable – that starts with manufacturing high-quality products delivering consistent experiences.
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