CannAmerica Brands Corp. announced that on February 22, 2021, it had entered into a non-binding letter of intent ("LOI") for the purchase of its Colorado licensee, Arsenal Oils and Extracts ("Arsenal"). The Company has entered into a non-binding LOI with Arsenal Extracts to purchase 100% of the membership interests and assets of Arsenal for aggregate consideration, including performance incentives, of $2,000,000. Arsenal is expected to provide the Company with existing extraction contracts for wholesale customers of distillate and other cannabis oils. The current facility has the capacity to produce up to 10,000 liters of cannabis distillates per year, which the Company intends to utilize for expanding its branded lineup of products in Colorado, as well as wholesale bulk oil sales. Arsenal has multiple brands of vaporizer cartridges, including Anointed and Lo-Hi, with current sales exceeding $1million per year into retailers across the state. The Company intends to continue the sales of Arsenal's branded products and introduce its own additional brand of concentrate products called LiveLabs into the Colorado marketplace with the goal of increasing both its product lines and revenues in the state of Colorado.