Marijuana Company of America (MCOA.OTCQB) launched two subsidiaries that they hope will help them expand their hempsmart product line into the South American markets, and specifically Brazil and Uruguay, today, according to a press release.
MR Hemp Brazil will handle MCOA’s manufacturing and sales of their products in Brazil. MCOA has been working with Brazilian medical doctors, who have been interested in working with the company’s CBD products. The physicians have expressed that they feel there’s an as yet unmet need for CBD products in the market, like the company’s hempSMART products.
“These specific joint ventures signify our diversified Cannabis business and will unlock the value of our hemp based quality CBD products into markets that have not fallen victim to market saturation. We are confident that we can act as a positive innovator in these markets with our proven team of local prominent business strategic partners and by offering effective pricing that should have a major positive impact on our future revenues. This has been part of our overall strategy since the new Management team began operating the MCOA business. This represents more efforts to provide our shareholders with greater value by offering the Company greater economic flexibility with respect to manufacturing and global distribution of hempSMART™ products, increasing sales, and by reaching an international audience of consumers in need of quality CBD products at good prices,” said Jesus M. Quintero, CEO of MCOA.
The joint venture with Mr Hemp Brazil and Mr Hemp Uruguay, including both production and distribution opportunities, will help MCOA’s to expand their reach globally, and give them a foothold in the Brazillian market, which sports a population of over 212 million consumers.
Subsequently, their Uruguay subsidiary will do the manufacturing and distribution in that country, which sports over 3.6 million consumers, and was the first country in the world to legalize recreational and medicinal cannabis. The company is also penning an application for a status in a “Free Trade Zone” which would exempt them from local, sales and exportation taxes. That way they can benefit from a tax free cost structure for products manufactured and sold to MCOA from their subsidiary.