Cann American Corp. (OTCPK:CNNA), has entered into a binding letter of intent.
Under the terms of the agreement Cann American will acquire 80 million common shares of Mark2media Group, constituting 80% majority ownership in Mark2, in exchange of 1.5 million series B preferred shares of Cann American.
Mark2media Group is a technology company with a vision to develop and distribute applications globally under a unique business model that eliminates heavy end user costs. Mark2 is registered with Google Play, Apple Store, Steam and Oculus.
Mark2 launched its first game, Infinite Dragoon, in September of 2021 and has received thousands of Google Play and Apple Store downloads. Mark2's next game, Dragon Caster: Age of Infinity, is in the final stages of development and has already received over 10,000 sign ups.
In addition to the Mark2 acquisition, the terms of the deal will see current CEO, Jason Black, step down as a director and officer of the company and Alex Woods-Leo appointed as new director and CEO.
Alexander Woods-Leo is a published developer and patent holder with over a decade of experience with public companies and financial services. Woods-Leo also currently serves as a director and CEO of Mark2media Group.
Assets such as the company's 20% stake in Cannagram are expected to remain with the company as management believes that Mark2's technology experience will greatly enhance the goals of Cannagram to expand into a technology driven cannabis delivery application.
Finally, the terms of the agreement require incoming management to make every best effort in up listing the company to the OTCQB tier. The acquisition and change of management are expected to close on October 31, 2022.
Cann American CEO, Jason Black stated: "I believe the company's initial expansion into the technology space and the pending appointment of Mr. Woods-Leo is the right direction for the company. While this transition will allow myself to focus on other endeavors, it will also allow for significant growth opportunities and additional planned acquisitions for Cann American under Mr. Woods-Leo's intention of expanding into a vastly diversified holding company."
Photo: Benzinga; Sources: courtesy of Stefan Balaz via Shutterstock and Peter Pike via Pixabay
Price Action
Cann American shares were trading 22.22% lower at $0.0056 per share at the time of writing Wednesday morning.
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