NANPING, China, March 9, 2022 /PRNewswire/ -- Happiness Development Group Limited ("HAPP" or the "Company"), (NASDAQ: HAPP) an emerging and diversified company engaging in the business of production of nutraceutical and dietary supplements, providing e-commerce sales and e-commerce marketing solutions, and the sales of automobiles today announced that the Company has entered a non-binding letter of intent with Kannaba Agritech Corp. ("Kannaba"), a Cannabis company headquartered in Vancouver, Canada to purchase 10% equity interests of Kannaba for a consideration of $6 million.
The Company is entering the cannabis industry as it is growing exponentially. According to a report by Prohibition Partners titled "The Global Cannabis Report, states that the legal global market size is expected to reach USD $102 billion by 2026." Kannaba's focus will be on sustainable cultivation of medical marijuana and to produce pharmaceutical grade ingredients to be sold and exported to the medical, pharmaceutical, nutraceutical and therapeutic industries globally. As a private corporation, Kannaba is currently in the process of becoming a licensed producer to cultivate cannabis in Canada via an indoor controlled grow environment. Additionally, Kannaba has acquired an international license in Zimbabwe for the exportation of outdoor grown cannabis, which has allowed Kannaba to have substantial access to acreage, which will potentially make the company one of the largest cultivators of cannabis by land size in Africa. Kannaba expects to produce only the finest quality medical cannabis with both its outdoor and indoor cultivation facilities. Kannaba expects to build its facilities to include a state-of-the-art-extraction-facility, to be EU GMP, GAP, ISO certified, and to follow European Pharmacopeia Standards. Kannaba aims to be the missing piece in the Global Cannabis Industry. Kannaba believes that it is well positioned to be a global player by offering year-round scalable cultivation with low costs of production.
"In the past few months, we have been considering how to utilize our advantages in herb extraction and planting technologies for international expansion. We have been searching for additional products that can make use of our technology in other various industries. After our diligent search and study, we believe cannabis is a very suitable choice," said Xuezhu Wang, CEO of the Company, "By investing in Kannaba, we will have the great opportunity to work closely with their experts in the cannabis industry and to research and study the cultivation, harvesting, and extraction of the cannabis plant."
"We are excited to be working with such a forward-thinking company like HAPP. Their team has built an excellent brand in China with the vision to expand to global markets. We feel that we can assist them through this expansion," said Saleem Mohamed, Chairman and Founder of Kannaba. "With Kannaba being vertically integrated with cannabis cultivation, extraction technology, international distribution agreements and a line of products, this equity investment will allow us to lay a solid foundation in establishing our global cannabis footprint."
About Kannaba Agritech Corp.
Kannaba is a global cannabis company holding international assets in the licensing, distribution, and cultivation of medical cannabis. A private corporation based in Vancouver, British Columbia, Kannaba's focus is to grow high quality medical grade cannabis indoors and outdoors by using micropropagation in order to supply the needs of the medical market.
Kannaba will have multiple international licenses to either cultivate, transform, and export non-psychotropic and psychotropic medical marijuana to nationally legalized international markets. Kannaba has acquired an international license in Zimbabwe for the exportation of outdoor grown cannabis, which will allow Kannaba to have substantial access to acreage, which will potentially make Kannaba one of the largest cultivators of cannabis by land size in Africa. Currently, Kannaba is in the process of becoming a Licensed Producer to cultivate cannabis in Canada in an indoor controlled grow environment. Their experience in horticulture, micropropagation, marketing, and distribution makes Kannaba poised for success as it looks to grow and expand its already existing international distribution agreements. www.kannabacorp.com
About Happiness Development Group Limited
Headquartered in Nanping, China, Happiness Development Group Limited currently has three business lines: nutraceutical and dietary supplements, e-commerce and automobile sales. The nutrition and dietary supplements business is focusing on the research, development, manufacture and marketing of various products made from Chinese herbal extracts and other ingredients. Over the past 17 years, we have established a product portfolio consisting of 23 PRC National Medical Products Administration registered "Blue-Cap" SKUs of nutraceutical and dietary supplements products. Our e-commerce business focuses on offering e-commerce solutions, including advertising and information technology services to small and medium-sized enterprises in China. We also run our online stores which carries our products of dietary supplements and other selected products sourced from the small and medium-sized enterprises in China. Our mission for the e-commerce business is to enable small and medium-sized enterprises to fully leverage the power of e-commerce to grow rapidly. Our automobile sales adopts the B2B business model and is committed to optimizing the auto supply chain by connecting car dealers on our online automobile sales platform and offering the overall services for purchasing automobiles. For more information, please visit: www.happ.org.cn
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may, "will, "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the occurrence of any event, change or other circumstances that could give rise to the terms of the LOI not hereafter being memorialized in a definitive agreement; the outcome of any legal proceedings that have been, or will be, instituted against the Company or other parties to the LOI following announcement of the LOI and transactions contemplated therein; the inability to complete the transactions contemplated by the LOI due to unsatisfied closing conditions; risks that the proposed transaction disrupts current plans and operations as a result of the announcement of the LOI and consummation of the transaction described therein; costs related to the proposed transactions contemplated by the LOI; changes in applicable laws or regulations; and other risks and uncertainties described herein, as well as those risks and uncertainties contained in reports filed by the Company with the Securities and Exchange Commission. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
SOURCE Happiness Development Group Limited