Globalive Technology AI and Blockchain ambition to end with Socati RTO

CPE News (6/4/2020) – Globalive Technology Inc. (TSX-V: LIVE) has entered into a “transformative” merger with Socati Corp., an Austin, Texas based manufacturer and processor of CBD and other cannabinoid-based products, by way of a reverse takeover (RTO).

The terms of the RTO contemplate that, with the exception of cash and cash-equivalents, Globalive’s existing business, assets and liabilities, including its technology venture subsidiaries and their intellectual property, its interest in Flexiti Financial Inc. and its affiliates and some or all of its technology investments, will, subject to regulatory and shareholder approval, be transferred to a third-party that is to be determined, with the value of the assets captured or distributed to the shareholders of the company immediately prior to the RTO.

Controlled by Anthony Lacavera’s Globalive Capital Inc., Globalive Technology Inc. went public on the TSX Venture Exchange in June 2018 itself through a RTO of Corporate Catalyst Acquisition Inc. by Globalive Technology Partners Inc.

Globalive Technology Partners was formed in 2017 with the goal of commercializing technologies, including those based on artificial intelligence and machine learning, blockchain and the internet of things.

photo credit: Globalive Technology

News Release

Globalive Technology Announces Transformative Merger with Leading CBD Company Socati Corp.

Reverse takeover with Socati Corp. creates a vertically integrated global CBD producer poised to become a leading supplier to top consumer brands

Reverse takeover with Socati Corp. creates a vertically integrated global CBD producer poised to become a leading supplier to top consumer brands

TORONTO, June 4, 2020 /CNW/ – Globalive Technology Inc. (TSX-V: LIVE) (the “Company”), a technology company based in Toronto, Ontario, is pleased to provide details relating to its previously announced transformative merger with Socati Corp. (“Socati”), a leading manufacturer and processor of CBD and other cannabinoid-based products, by way of a reverse takeover (the “Transaction”). The combination will create a vertically integrated global wellness company with a significant opportunity to capitalize on the rapidly evolving and consolidating CBD marketplace. More information regarding the Transaction can be found in the Company’s SEDAR filing at www.sedar.com.

Socati Overview

Socati is a vertically integrated manufacturer and marketer of premium-quality and efficacious cannabinoid ingredients and consumer products. The company focuses on the manufacture of CBD, minor cannabinoids such as CBG and CBN, and other functional ingredients and finished wellness products. Socati possesses extensive intellectual property and proprietary technology in cannabinoid extraction and separation, as well as best-in-class in-house analytical capabilities.

Significantly, Socati is the only commercial scale producer of ‘USDA Organic’ certified cannabinoid ingredients with non-detectable levels of THC, the psychoactive component of hemp. This creates compelling brand value and a first-mover advantage for Socati as consumers shift to organic CBD products. The USDA Organic Seal is the gold standard for supply chain integrity in the United States, with consumer demand for organic products driving significantly higher growth rates and price premiums relative to their nonorganic counterparts.

Socati’s vertical integration across ingredients, product manufacturing, branded products, and distribution empowers the company to drive profit across the value chain. The company operates across the United States, a foundational market for Socati that is projected to reach US$24 billion by 2025, according to investment banking firm Jeffries. The company operates five greenhouses and three full-scale genetic laboratories in Oregon and a 22,000 square-foot manufacturing facility in Montana.

Socati also has activities in both Europe, whose CBD market is projected by Canaccord Genuity to reach €3.8 billion by 2022, and Asia, with the Chinese CBD market alone projected to reach US$15 billion within five years, according to Grand View Research. This vertical integration and diverse geographic footprint offers distinct advantages over comparable CBD producers, providing a platform uniquely positioned to capitalize on consolidation opportunities as they arise.

“Demand for THC-free CBD products is growing exponentially around the world,” said Lorne Abony, Socati’s Chairman. “Socati’s unique ability to deliver consistent USDA Certified cannabinoid ingredients and finished products that meet industry-leading quality standards positions our company to become a leading supplier to top consumer brands and retailers incorporating CBD into their products and stores across the globe.”

Management Expertise

Socati is led by a world-class management team and Board of Directors with demonstrated expertise in developing international brands and cannabinoid products.

Management Team

Josh Epstein, CEO and Co-Founder
Epstein previously served as President & Chief Operating Officer of global cannabis producer Nuuvera, which was subsequently purchased by industry leader Aphria for C$826 million. Epstein was previously a partner at FastForward Innovations, an investment firm focused on emerging technologies.

Lorne Abony, Chairman and Co-Founder
Abony is an experienced entrepreneur and investment professional. He co-founded and led Nuuvera, overseeing the company’s international production and distribution expansion into markets such as Germany, Israel and Italy. Abony previously co-founded FUN Technologies and facilitated its growth into the world’s largest provider of online casual games and fantasy sports. He sold the company for C$484 million in 2006.

Brian Goldberg, CFO
Goldberg was formerly Chief Financial Officer, Chief Strategy Officer & Executive Vice President of Corporate Development of Amplify Snack Brands, Inc. from company formation in 2014 through successful exit to The Hershey Company in 2018 for ~$1.7B+. Goldberg was previously Chief Financial Officer at Badlands Power Fuels, LLC through its successful exit to Heckmann Corporation in 2012 and served as the Chief Financial Officer and Chief Operating Officer at Sweet Leaf Tea Company through its successful exit to Nestle in 2011.

Brad Kelley, COO
Kelley joined Socati with more than 25 years of executive and operational experience in flavors, ingredients, and chemicals. Over the last eleven years, as V.P. Operations, Chief Operations Officer, and President, his leadership was instrumental in the rapid growth of Mane’s U.S. flavor division. Before joining Mane, he worked for Givaudan in the U.S. and in Switzerland, where he held various operations leadership positions. He started his career with Monsanto in Pensacola, Florida.

Board of Directors

Socati’s Board of Directors includes Co-Founder & CEO Josh Epstein; Co-Founder & Chairman Lorne Abony; Eric Ball, a technology professional and investor who served as a senior finance executive at Oracle for more than 10 years; and Edward Lonergan, a veteran consumer packaged goods and B2B industry executive with more than 35 years in senior roles at various companies including Procter & Gamble, Gillette Europe, and Chiquita Brands International.

About Socati

Socati is a leading processor of USDA Organic certified hemp-based products, including broad spectrum extracts with non-detectable THC. The company provides a top-quality and consistent product for a market projected to reach $24 billion by 2025. Leveraging investments in new technologies, Socati engages in large-scale manufacturing and has logistics in place to process increasing amounts of hemp biomass to meet demand. With the ability to manufacture USDA Certified hemp extracts at scale, Socati is built to serve the needs of large, international CPG companies that are seeking high quality raw materials. To learn more about Socati, visit www.socati.com. Watch this VIDEO for details on Socati’s high quality CBD ingredients.

For media inquiries:
Rob Moysey
Communications Manager, Globalive
Media@globalivetech.com

Josh Stanbury
SJS Public Relations
416-628-7441
josh@sjspr.co

For investor inquiries:
Simon Lockie
Chief Corporate Officer
1-647-977-2727
InvestorRelations@globalivetech.com