The Bhang Corporation, a privately-held cannabis edible and accessory company with operations out of California, has entered into a LOI (letter of intent) with Canadian public company Pele Mountain Resources Inc. (TSXV:GEM) to facilitate the consolidation of both company’s into one entity.The move by Pele Mountain Resources will actually be a reverse takeover by the Bhang Corporation. The Bhang Corporation is one of many privately held United States companies in the cannabis and industrial hemp sectors that have chosen to take their companies public in Canada. This potential move by Bhang has been strategically timed ahead of the legalization of recreational cannabis and the extraction of cannabinoids from hemp in Canada with the passing of the Cannabis Act this summer.
Bhang branded cannabinoid based products include chocolates, gum, oral sprays, isolates, and vapes and vape cartridges. The company was founded by professional desert chef Scott Van Rixel and the company’s product line has won a series of awards since 2010. Bhang branded products is highly recognized by consumers in the recreational and medicinal markets in the United States.
Though this transaction will still be determined by legal regulatory requirments by the Toronto Stock Exchange, Bhang expects to complete financing to raise between $7M and $10M depending upon the closing of this transaction.
Scott J. Van Rixel, Chief Executive Officer of Bhang Corporation states, “I look forward to the completion of this milestone transaction so that Bhang can further expand its business operations and grow its brand worldwide.”