October 28, 2016 09:00 ET
Finore Mining Announces Letter Agreement for Acquisition of Kushtown USA LLC, a Leading California Marijuana Beverage Company
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 28, 2016) - Finore Mining Inc. ("Finore" or the "Company") (CSE:FIN) (CSE:FIN.CN) (OTC PINK:FNREF) is pleased to announce that it has signed a letter agreement dated October 27, 2016 (the "Assignment Agreement") with an arm's length private British Columbia company (the "Assignor"), pursuant to which the Assignor has assigned to the Company the rights and obligations of a letter agreement dated October 25, 2016 (the "Letter Agreement") between the Assignor and Kushtown USA, LLC ("Kushtown") a private California limited liability company. Pursuant to the terms of the Letter Agreement, the Company will acquire all of the issued and outstanding securities of Kushtown (the "Transaction").
About Kushtown USA (www.kushtownusa.com)
Kushtown USA LLC is a California based leading liquid edibles company that specializes in cannabis infused medicated water, sodas, hot sauces and barbecue sauces. Since 2000, Kushtown has been one of the leaders in marijuana beverages and edible products in California, with sales to over 200 medical marijuana dispensaries.
Kushtown currently markets and distributes:
Kushtown Hot Sauce
Kushtown BBQ sauce
Kushtown holds trademark rights to the Kushtown line of products, and management plans to leverage the established Kushtown brand name in California and aims to expand the Kushtown brand into the recreational cannabis market across North America, pending the November 8, 2016 vote in California and other States to legalize recreational marijuana.
California Proposition 64, the California Marijuana Legalization Initiative will be on the ballot on November 8, 2016
The accelerating pace of marijuana legalization in the United States has grabbed headlines around the world in the past few months. In the United States, four states (and the District of Columbia) already allow the use of recreational marijuana. On November 8, 2016, alongside the presidential election five more will vote on similar legalization - California, Nevada, Maine, Massachusetts and Arizona.
Medical marijuana has been given the green light in half of all U.S. states. Legal cannabis sales in the United States jumped 17 percent, to $5.4 billion, in 2015 and are expected to grow by 25 percent this year, to $6.7 billion, according to Arcview Market Research.
By 2020 legal cannabis sales in the United States are projected to hit $21.8 billion. California currently accounts for 49 percent of all US cannabis sales by state and it is predicted that the legal cannabis market will see a whopping $21.8 billion in total annual sales by 2020. (By comparison, at that point, the legal marijuana market could be bigger than the National Football League, which saw roughly $12 billion of revenue last year but is aiming to reach $25 billion by 2027.)
Kushtown is well positioned to capitalize on the changing legislation in the marijuana industry in California and the company plans to execute an aggressive marketing and distribution plan to expand the Kushtown brand of liquid edibles across North America. Management of Kushtown has built an excellent reputation operating in California's medical marijuana market and is a leading liquid edibles company in California. With California's potential move towards legalization, Kushtown is planning an aggressive growth strategy and is currently in the process of acquiring a high output automated bottling and packaging plant to be installed and operational in the coming weeks.