Publishing Company to expand cannabis expertise and accelerate ecommerce capabilities with latest acquisition
- BudTree Corp. to become a wholly-owned subsidiary of MediaCentral
- Acquisition to provide MediaCentral with proprietary technology to leverage across its existing channels
- Acquisition will fast-track MediaCentral's plans to introduce an eCommerce platform linked to CannCentral.com the Company's popular digital cannabis media site
TORONTO, ON / ACCESSWIRE / July 24, 2020 / Media Central Corporation Inc. (CSE:FLYY)(FSE:3AT) ("MediaCentral" or the "Company") today announced it has entered into a binding letter of intent ("LOI") to acquire Budtree Corp. ("BT" or "Budtree").
Established in 2016, Budtree is a dynamic online hub for vendors, merchants, customers and connoisseurs of cannabis. Budtree offers a safe and secure directory and marketplace for cannabis enthusiasts to uncover new products in both the medical and recreational market. Budtree has invested nearly $2 million in its proprietary web platform. Through this acquisition, MediaCentral will be able to leverage this platform to expose its 6.5 million readers to the rapidly emerging online cannabis and CBD market and open new avenues of monetization for the Company.
"Acquiring Budtree.com is a natural extension to our business model for Canncentral.com," said Brian Kalish, CEO of MediaCentral. "This opens up an immediate revenue generating opportunity to merge CannCentral's daily enthusiastic cannabis readers directly with an established ecommerce platform. With this acquisition our loyal readers will be able to easily purchase the cannabis products they are learning about on our site."
The latest planned Acquisition of Budtree.com follows MediaCentral's aggressive strategy to create and acquire a strong portfolio of brands with a likeminded audience to consolidate an audience of 100 million, unifying a powerful demographic through cutting-edge content, events, social media and programmatic advertising. Budtree.com will join Vancouver's Georgia Straight, Toronto's Now Magazine, CannCentral.com, and ECentralSports.com as brands under the MediaCentral umbrella.
"We have always wanted to offer our consumers a safe and secure way to access cannabis products. Now, with CannCentral, we will be able to leverage award-winning writers and content producers to showcase and educate consumers on our diverse product. We are aligned with the vision MediaCentral sees for Budtree and are excited for the next phase of our company," said Ray Rasouli, CEO of Budtree Corp.
Subject to completion of due diligence, audit, and regulatory approvals, the Company and BT will enter into a Definitive Agreement for the Acquisition (the "Acquisition") by way of a share exchange which will result in BT becoming a wholly-owned subsidiary of MediaCentral. On closing, MediaCentral will issue 85,451,521 shares to the shareholders of BT.
Additionally, the Company will complete a $1,000,000 private placement (the "Private Placement") at a price of $0.033, with MediaCentral responsible for 50% of the Private Placement and BT responsible for the remaining 50% portion of the Private Placement. A senior member of the Budtree team will join MediaCentral's Board of Directors following the closing of the transaction.
The LOI follows MediaCentral's recent announcement regarding its intent to enter the eCommerce market with a hemp-based CBD product shop connected to CannCentral.com as a strategic move to introduce new revenue streams to the Company.
About Media Central Corporation Inc.
Media Central Corporation Inc. (CSE: FLYY, FSE: 3AT) is an alternative media company situated to acquire and develop high-quality publishing assets starting with the recent acquisition of Vancouver Free Press Corp., the purchase of NOW Communications Inc. and the launch of digital cannabis platform CannCentral.com and ESports outlet ECentralSports.com. MediaCentral is consolidating and digitally monetizing the over 100 million coveted and premium consumers of the approximately 100 alternative urban publications across North America, creating the most powerful audience of influencers.
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About Vancouver Free Press Corp.,
Vancouver Free Press Corp., owns and operates Georgia Straight and straight.com. Established in 1967 as the news, lifestyle, and entertainment weekly in Vancouver, the Georgia Straight has been an integral part of the active urban West Coast lifestyle for over 50 years. Reaching over 56 million annual readers, every Thursday in print, and every day at straight.com, Georgia Straight delivers an award-winning editorial package of features, articles, and reviews. Regular coverage includes news, tech, arts, music, fashion, travel, health, cannabis, and food, plus Vancouver's most comprehensive listings of entertainment activities and special events. Vancouver Free Press Corp. is a wholly owned subsidiary of Media Central Corporation Inc. (CSE: FLYY, FSE: 3AT).
About NOW Central Communications Inc.
NOW Central owns and operates NOW Magazine and nowtoronto.com. Since 1981 NOW has been Toronto's news and entertainment voice, published in print every Thursday, and daily at nowtoronto.com. Reaching over 25 million annual readers, NOW has been a leading publication, defining and pioneering the independent and alternative voice for more than 38 years. NOW Central Communications Inc. is a wholly owned subsidiary of Media Central Corporation Inc. (CSE: FLYY, FSE: 3AT).
About CannCentral Inc.
With unique daily content appealing to both new and experienced cannabis consumers, Canncentral is poised to become the leading digital publisher for all things cannabis. Presenting authentic news and lifestyle content through a verified lens, Canncentral is emerging as an industry leading authority on knowledge, product and insight for cannabis enthusiasts, patients and investors around the world. Canncentral Inc. is a wholly owned subsidiary of Media Central Corporation Inc. (CSE: FLYY, FSE: 3AT).
ECentralSports is a dynamic digital destination for eSports fans in search of the latest in news, competitive gaming coverage, analysis, events, lifestyle features and gaming culture. With a strong focus on covering cultural, artistic, and social subjects from deep within the esports world, ECentral provides the ultimate insider guide to the industry. ECentralSports is a wholly owned subsidiary of Media Central Corporation Inc. (CSE: FLYY, FSE: 3AT).
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "potential", "believe", "intend" or the negative of these terms and similar expressions. Forward-looking statements in this news release may include, but are not limited to, statements with respect to internal expectations, expectations with respect to estimated margins, cost structures, and cost structures in the media industry. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the media industry generally, income tax and regulatory matters; the ability of MediaCentral to implement its business strategies; competition; currency and interest rate fluctuations and other risks.
Readers are cautioned that the foregoing list is not exhaustive and should carefully review the various risks and uncertainties identified in the Company's filings on SEDAR. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.
The forward-looking statements included in this news release are made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.
Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
For further information:
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SOURCE: Media Central Corporation Inc.
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