Abattis Looks to Leverage Crypto for Cannabis M&A -- CFN Media
February 13, 2018 --
SEATTLE, Feb. 13, 2018 (GLOBE NEWSWIRE) -- CFN Media Group ("CannabisFN"), the leading creative agency and media network dedicated to legal cannabis, announces publication of an article covering Abattis Bioceuticals Corp.'s (CSE:ATT) (CNSX:ATT) (ATT.CN) (OTCQB:ATTBF) recent investment in a new cannabis-focused cryptocurrency that has yet to undergo an initial coin offering.
Cryptocurrencies have taken the financial world by storm over the past several months. While the market has certainly been volatile, there is no doubt that blockchain technology and cryptocurrencies are here to stay as a broader concept. Many cryptocurrencies are targeting the cannabis industry given its need for reliable transaction records and payment processing outside of the traditional banking system.
Cryptocurrencies and Cannabis
Initial coin offerings, or ICOs, are the process of selling a new cryptocurrency in exchange for a more established cryptocurrency or fiat currency. For example, Storj-X raised $30 million in less than a week after announcing a platform that aims to provide cloud storage. The tokens serve as the currency by which users can purchase or rent out hard drive space. ICOs have become extremely popular throughout 2017 and moving into 2018.
There are a few cannabis-focused coins out there currently. According to coinmarketcap.com, HempCoin, with an approximately $40 million market cap, and PotCoin, with an approximately $35 million market cap, are the two largest. As the cannabis industry matures on both sides of the border, the marriage between cryptocurrency and cannabis has the potential to grow significantly.
Abattis Acquires CannaNUMUS
Abattis Bioceuticals recently announced an investment agreement to acquire a 49 percent stake in CannaNUMUS Blockchain Inc., which is developing a cryptocurrency targeting the burgeoning cannabis industry. The company hopes to enable frictionless peer-to-peer transactions that marry the benefits of blockchain with the enforceability of legal contracts, which could be an attractive proposition for cannabis companies facing banking issues.
“With a 49% equity stake in this blockchain platform, Abattis could see a significant upside from any CannaNUMUS liquidity event, including a reverse takeover of CannaNUMUS or an ICO,” said Abattis CEO Rob Abenante. “With both companies being actively engaged in M&A in the cannabis space, we anticipate that the partnership will be synergistic, creating opportunities for collaboration, growth, and a mutual deepening of expertise.”
Under the terms of the deal, Abattis will make an initial investment into CannaNUMUS and then has incentivized them with milestone bonus payments. The milestones include a definitive agreement with a company engaged in the cannabis economy to use the coin as a medium of exchange; the successful ICO of the coin; and a second definitive agreement being entered into with a company engaged in the cannabis economy using the coin as a medium of exchange.
First Milestone Met
Abattis has already announced the closing of the 49% acquisition, along with the achievement of the first investment milestone. CannaNUMUS reached an agreement with Active Health Projects Ltd., a Vancouver Island-based licensed producer applicant. Under the terms of the agreement, CannaNUMUS will invest in Active Health while Active Health commits to buying CannaNUMUS coins with a percentage of the company’s revenues.
The CannaNUMUS/Active Health deal adds instant validation to the business model and could pave the way for similar agreements with other Canadian cannabis companies in the future. Abattis believes that its investment in CannaNUMUS will appreciate significantly in value as CannaNUMUS gets closer to an ICO and signs agreements with other licensed producers and late stage applicants.
Abattis Bioceuticals Corp. (CSE: ATT) (OTCQB: ATTBF) represents an investment opportunity that marries both the cryptocurrency and cannabis industries. With a nearly 50% stake in a new cannabis cryptocurrency, the company is well positioned to take advantage of the upcoming initial coin offering and generate value for its shareholders.
These coins could have a significant value as a transaction currency of choice among cannabis companies. In fact, Abattis itself could benefit by tying the cryptocurrency into its own expanding menu of business initiatives. The company offers cannabis lab testing and product development services, recently bought a cannabis accessories company, and has an agreement to develop a cannabinoid-infused beer with a Vancouver craft brewer.
Please follow the link to read the full article: http://www.cannabisfn.com/abattis-looks-leverage-crypto-cannabis-ma/
For more information, visit the company’s website at www.abattis.com.
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