Vancouver, British Columbia, Canada, August 6, 2019 – Global Cannabis Applications Corp. (“GCAC” or the “Company”) (CSE: APP, FSE: 2FA, OTCQB: FUAPF), a leading developer of innovative data and AI technologies for the medical cannabis industry, is pleased to announce the funding of its strategic partner Sequoya Cannabis Ltd. (“Sequoya”), by MMJ Group Holdings Limited (ASX: MMJ) (FRA: 2P9) (OTCMKTS: MMJJF) (“MMJ“), a global cannabis investment company with a diversified portfolio of cannabis sector investments. As announced on July 22, 2019, MMJ is entering the lucrative European Union, the world’s largest and fastest-growing medicinal cannabis market, by investing C$2.5 million in Sequoya, the privately-held Canadian cannabis extraction company with operations in Poland, (https://www.proactiveinvestors.co.uk/companies/news/224249/mmj-group-expands-into-eu-by-investing-in-leading-polish-cannabis-extraction-company-224249.html)
“The significant investment by the MMJ Group Holdings in our strategic European partner Sequoya is an endorsement of Sequoya’s business plan and the potential value in the Polish cannabis marketplace,” said Brad Moore, CEO of GCAC. “Sequoya provides access for both MMJ and GCAC to enter the lucrative and growing medical cannabis market in the EU through Poland. Sequoya is focused on becoming a leading GMP certified CBD supplier in Poland and the EU and the partnerships with GCAC and MMJ, will expedite its cannabis CBD extraction operations. We look forward to working closely with both Sequoya and MMJ as we advance our priorities within the European Union.”
GCAC’s partnership with Sequoya was announced on May 13, 2019, and established a benchmark for GCAC to become vertically integrated cannabis company with global reach. Under the License Agreement, Sequoya has the exclusive right to market GCAC’s Citizen Green Prescriptii Patient-Care Solution to over 13,700 pharmacies in Poland. The Licensing Agreement calls for share exchange and other financial considerations, such that GCAC will initially own over 10% of Sequoya increasing to over 20% if certain options are exercised.
The recent developments between GCAC, Sequoya and MMJ position the group to become a leading force in the Polish cannabis industry. Poland has a population of just over 37.9 million people with a massive USD25.17 billion healthcare budget. The EU, with Poland as a member state, contributed more that 22.2% of the world global pharma valued at €754,555 million.
In 2017, Poland legalized medical cannabis, allowing doctors to offer prescriptions for any condition that can be treated with cannabis if supported by research. At that time, it was estimated there were approximately 300,000 patients that qualify for medical cannabis treatment, with permitted ailments under the law including chronic pain, epilepsy, nausea caused by chemotherapy, and symptoms of multiple sclerosis.
In 2019, the number of registered patients has grown to over 400,000. However, the medical cannabis market in Poland is still in its infancy with strict regulations for pharmacies to meet. GCAC and Sequoya solution will assist pharmacies with the management of medical cannabis patients receiving treatments and will be the first prescription assistance technology available to the Polish medical cannabis market.
Sequoya’s business plan is focused on creating a leading GMP certified hemp cannabidiol (CBD) supplier, with longer-term plans to expand into the legal medical marijuana market across Europe. The cannabis CBD extraction operations will be established in Krakow, Poland, with opportunity to expand as a leading supplier of CBD extracts and isolate within the European Union.
CBD production from hemp is legal across Europe with no cross-border tariffs within the European Union. Additionally, no specific permits are required for producing hemp-derived CBD in Poland.
CBD extraction is one of the highest value opportunities within the cannabis ecosystem, and by building a large-scale production plant in a low-cost jurisdiction such as Poland, it will have straight forward, no-tariff access to high value markets including Germany and northern Europe.
About Sequoya Cannabis Ltd.
Sequoya Cannabis Ltd. is a Canadian and European wholesale distributor of cannabis-based products to the Polish marketplace and Europe in general. Sequoya Cannabis Ltd is presently going to stage 2 of their business plan and preparing to manufacture CBD isolates and to become a licensed importer for medical marijuana and various derivatives for the European marketplace.
About Global Cannabis Applications Corp.
Global Cannabis Applications Corp. is a global leader in designing, developing, marketing and acquiring innovative data technologies for the medical cannabis industry. The Citizen Green platform is the world’s first end-to-end – from patient to regulator – medical cannabis data solution. It uses six core technologies: mobile applications, artificial intelligence, regtech, smart databases, blockchain and digital reward tokens, to qualify candidates for clinical studies. These technologies facilitate the proliferation of digital conversations by like-minded people in the medical cannabis community. Managed by digital and cannabis industry experts, GCAC is focused on viral global expansion by providing the best digital experience in the cannabis market.
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This news release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business of GCAC. Forward-looking information is based on certain key expectations and assumptions made by the management of GCAC. Although management of the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because GCAC can give no assurance that they will prove to be correct. Forward-looking statements contained in this news release are made as of the date of this news release. GCAC disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
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