CannAmerica Brands Corp. (CNSX:CANA) entered into letter of intent to acquire Arsenal Oils and Extracts from Rainbow Coleman and Adam Carson for $2 million on February 22, 2021. As of December 16, 2021, CannAmerica Brands Corp. executed a Purchase Agreement to acquire Arsenal Oils and Extracts from Rainbow Coleman and Adam Carson. As part of consideration, CannAmerica Brands will pay $2 million in a structured purchase combination of 70% ($1.4 million) in shares and 30% ($0.6 million) in cash. The share component will be issued over a two-year structured period. The agreement includes employment agreements for the management team of Arsenal, who will be joining the CannAmerica team. DAFF International, LLC, a wholly owned US subsidiary of CannAmerica, will enter into a management agreement with Arsenal to manage the business and operations of Arsenal during the required regulatory review and approval process prior to the closing of the acquisition. The transaction is subject to acquirer board approval, stock exchange approval and completion of satisfactory due diligence. The Company must obtain approval of the transfer of the Retail Marijuana Conditional License and the Retail Marijuana Products Manufacturer License by the State of Colorado Department of Revenue Marijuana Division and the associated City of Aurora Marijuana Enforcement Division, respectively (collectively, the “Approvals”). The transaction will result in a Fundamental Change of the Company under CSE Policies and is therefore subject to CSE review and Shareholder approval. CannAmerica Brands intends to enter into a definitive purchase agreement on or before April 23, 2021. As on April 26, 2021, CannAmerica Brands Corp has extended the due diligence period to June 15, 2021.