Creso Pharma Limited (ASX:CPH) entered into a binding letter of intent to acquire Abby & Finn, LLC for $2.5 million on January 27, 2023. Under the terms of the LOI, the Company would acquire the assets of A&F for an initial enterprise value of $1.79m, expected to be comprised of $1m of Creso equity and $270,000 of secured convertible notes, on similar terms to the notes announced to the market on 1 November 2022, to repay the existing debt between A&F and La Plata Capital LLC, as well as the assumption of A&F's SBA (Small Business Association) loan of $518,000, which has a maturity date of 26 May 2050 and interest rate of 3.7% per annum. The combined consideration represents an acquisition multiple of just 0.70x last quarter annualised revenue.

The LOI also provides for the opportunity for the equity holders of A&F to be provided $750,000 in Creso stock, based on achieving financial targets to be agreed in the definitive agreements. A&F generated $635,000 of revenue in the quarter ended September 30, 2022.