Blackhawk Signs Term Sheet to Acquire California Distribution Center and Expand into US Cannabis Market

Blackhawk Growth Corp. (CSE: BLR) of Alberta, Canada has announced the company’s first step into the US cannabis and CBD market with the acquisition of KO Logistics LLC in Shasta Lake, California. Blackhawk views an investment in KO Brands as another opportunity for its shareholders to be a part of a fragmented and fast-growing US cannabis market. Blackhawk, through its wholly-owned Delaware subsidiary, and KO Brands have entered into a term sheet dated August 21, 2019, to review a potential acquisition. Subject to completion of due diligence, Blackhawk expects to sign a definitive agreement to acquire KO Brands in the next thirty days.

Blackhawk Resource Corp. is a growing public investment fund located in Calgary, AB that is listed on the TSX Venture Exchange under the symbol TSXV: BLR. Blackhawk drives its growth by investing in equity and debt instruments of companies and generating positive returns with minimal risk for shareholders. The company’s strategy is focused on investing in multiple companies across a variety of sectors across North America. Blackhawk intends to utilize the extensive business, financial and technical expertise of its management team, to source and evaluate their investment opportunities to consistently generate positive cash flows.

KO Brands is the parent company which owns “KnockOut Brands”. KO Brands currently holds a state Licenced distribution Centre in Shasta Lake, California. Producing some of the highest quality cannabis products from its own brands as well as white labeling for some of the largest brands in the USA. The products range from pre-rolled cannabis, wood tipped cigars, CBD and THC freezies, dried flower, and even its own patent pending packaging. 

KO Brands has secured its position as a leader of both supply and innovation within the growing US cannabis sector. Providing high-quality products throughout California and packaging innovation all over the United States. KO Brands consistently strives in all jurisdictions where it operates or seeks to operate, bringing professionalism and socially responsible distribution of cannabis and cannabis products.

Blackhawk CEO Frederick Pels is excited about the acquisition stating, “This is a significant deal for Blackhawk as we not only add a revenue-generating business to our portfolio, but one led by an established operator with a great plan to take advantage of the ever-growing market in California. As an investment issuer, Blackhawk is in a unique position to take advantage and make investments in numerous situations that we feel will prove very profitable for shareholders and we plan to take full advantage of it over the coming months.”

Shannon Miller, Chief Executive Officer for KO Logistics added, “We are very excited here at KO about this acquisition and I believe Blackhawk to hold a very similar mission and I eagerly anticipate showing investors increased shareholder value.”

Following completion of the acquisition, KO Brands will form part of Blackhawk’s existing portfolio of investments in the retail cannabis sector. KO Brands existing management will retain responsibility for overseeing day-to-day operations, with Blackhawk assuming overall control of the business. Blackhawk will leverage contacts previously established by Green Room’s management team to improve and expand KO’s product and client base in the U.S. Currently Blackhawk holds interests in Noble Line Inc. a US based on line CBD retailer, and a number of Canadian based retail cannabis license applicants.