Gabriella's Kitchen Inc. Discusses Proposed Changes to California's Cannabis Regulations, Jeff Sessions' Resignation as US Attorney General and Other Legal Developments

by Gabriella's Kitchen
Gabriella's Kitchen Inc. Discusses Proposed Changes to California's Cannabis Regulations, Jeff Sessions' Resignation as US...

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CALGARY and SANTA ROSA, CA, Nov. 9, 2018 /CNW/ - Gabriella's Kitchen Inc. (the "Company" or "GABY") (CSE: GABY) today provided comments to shareholders on recent changes in United States cannabis regulations, plus other national and international developments in the cannabis sector.

GABY commented to shareholders today on recent draft regulations that have been released by the California Bureau of Cannabis Control ("CBCC") which prohibit white labelling and co-packing of cannabis infused products for companies not holding a license issued by the CBCC.  If passed, brands not holding a manufacturing license would not be allowed to manufacture infused products for sale in the state of California.  GABY recently acquired two cannabis licenses, a manufacturing license through its acquisition of The Oil Plant and a distribution license through its acquisition of Sonoma Pacific Distribution (both issued by the CBCC). 

"It has always been part of GABY's strategy to own its infrastructure in California and to control its product development and sales cycle" said Margot Micallef, Founder & CEO of GABY. "With these two licenses GABY is protected from the vagaries of legislative changes such as those draft regulations recently introduced" she added. 

"While we do not want to see any of the great brands offered in California cut off from being able to access the California markets - to the degree that it makes sense - we are poised to acquire such brands who wish to partner with GABY to protect their market share through GABY's manufacturing license and to expand with GABY's mainstream and licensed distribution infrastructure"  Ms. Micallef concluded.

With these acquisitions GABY is poised to quickly expand into new markets as soon as federal legalization allows inter-state commerce.  The resignation of Jeff Sessions as US Attorney General may be signalling a new found willingness on the part of the federal government in the US to legalize cannabis.  When that happens GABY anticipates utilizing its recently acquired manufacturing and distribution infrastructure in California to quickly manufacture and distribute its products across the US gaining first mover advantage in many markets.

"While I do not think that Jeff Sessions' resignation is completely related to his negative stance on cannabis legalization, nor is it indicative of what the Trump administration will do regarding cannabis legalization, it certainly removes one of the significant barriers to federal legalization that stood in the way.   All eyes are now on President Trump.  Who he appoints to replace Mr. Sessions will provide much needed guidance on his thinking in this regard."  Ms. Micallef explained. 

Also noteworthy is the fact that Michigan, Utah and Missouri all voted in favour of legalization of cannabis, bringing the number of states which are "Adult" legal (also known as "rec legal" or "lifestyle legal") to 10 and the number of states which are "medically" legal to 33. 

Further, in light of the recent (albeit limited) rescheduling of CBD from Schedule 1 (no medical benefit) to Schedule 5 (accepted medical use, with low potential for abuse) for the purpose of legalizing Epidiolex (a new drug derived from cannabis) to treat two rare forms of epilepsy, it is "no wonder" says Ms. Micallef, "that Pew Research Centre recently reported that 62% of Americans said they supported legalizing cannabis."

Other recent news of interest in the cannabis space is Mexico's Supreme Court ruling last month that cannabis prohibition is unconstitutional, paving the way for the US's neighbor to the south to join the US's neighbor to the north in federally legalizing cannabis.  This recent event puts even more pressure on the US federal government to consider legalization of cannabis at the federal level. 

"We will continue to monitor US and international developments in the cannabis space" said Ms. Micallef.  In the meantime, GABY is well positioned to grow its alto™ and Aunt Zelda's™ brands in the California market and beyond."

To learn more, please visit the Company website at www.gabriellas-kitchen.com and www.altofoods.com

About Gabriella's Kitchen

Gabriella's Kitchen (GABY) is a pure-play cannabis wellness company holding a manufacturing and a distribution license issued by the California Bureau of Cannabis Control.  With these licenses and with its existing infrastructure of major retailers and an extensive broker and distribution network, GABY is positioned to service both mainstream grocery with CBD infused products, and licensed cannabis retailers with CBD and THC-infused products throughout Canada and the United States. The Company also has over 25 non-infused products available in more than 3,400 major retail stores across the U.S. and Canada.

Sisters Margot and Gabriella co-founded GABY to bring high quality, delicious, healthy superfoods to the market. The desire to create the all-encompassing wellness company came after Gabriella received a dire cancer diagnosis which spurred the sisters to prolong Gabriella's life through a holistic approach to health. GABY directly and through The Oil Plant now offers a diverse range of products that cater to a variety of dietary and health concerns. Although Gabriella ultimately passed away from her illness, she lived exponentially longer than doctors predicted. Her memory and passion live on through GABY's mission: to empower people to live healthy lives without compromise.

Disclaimer and Forward-Looking Information

The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release. Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the control of Gabriella's Kitchen Inc. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Forward looking statements include, but are not limited to, the anticipated availability of the Company's Infused Products. The Company assumes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

SOURCE Gabriella's Kitchen