CbdMD, Inc. completed the acquisition of Substantially all Assets of Direct CBD Online for $3.5 million.
July 21, 2021
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cbdMD, Inc. (NYSEAM:YCBD) entered into a letter of intent to acquire Substantially all Assets of DirectCBDOnline.com on July 19, 2021. DirectCBDOnline.com team will join cbdMD, Inc. John Wiesehan III and Brad Trawick the co-Founders of DirectCBDOnline.com will be playing important roles. John Wiesehan III will be appointed in a newly created role of Chief Revenue Officer at closing. Transaction is subject to customary conditions to closing, cbdMD, Inc. expects to enter into an asset purchase agreement and complete the acquisition no later than July 31, 2021.
cbdMD, Inc. (NYSEAM:YCBD) completed the acquisition of Substantially all Assets of Direct CBD Online for $3.5 million on July 22, 2021. cbdMD acquired the assets for the consideration of $2 million in cash and up to 0.6 million shares of the cbdMD’s restricted common stock. At the Closing, the $0.2 million of the cash purchase price was deposited into escrow pending possible post-closing adjustments and indemnity provisions. At the closing, cbdMD issued to Twenty Two, 0.3 million shares of cbdMD's common stock and 0.1 million shares of the cbdMD’s Common Stock shall be issued to Twenty Two on or before January 31, 2023, less any amounts setoff against such shares for indemnification claims pending against or paid by cbdMD under the asset purchase agreement and the remaining 0.2 million shares shall be issued to Twenty Two on or before 60th day following the first year anniversary of the closing subject to certain earn out provisions provided under the asset purchase agreement. The shares are subject to a 180 day lock up agreement subject to certain limited transfers which will also be subject to the lock up. Co-Founder John Wiesehan III has been appointed to the newly created role of Chief Revenue Officer at cbdMD and Co-Founder Brad Trawick will be Director of Procurement at cbdMD.
cbdMD, Inc. produces and distributes cannabidiol (CBD) products. The Company owns and operates CBD brands cbdMD, Paw CBD and cbdMD Botanicals. Its cbdMD brand of products includes a range of premium every day and functional CBD products, including tinctures; gummies; topicals; capsules; drink mixes; and sleep, focus and calming aids.Its Paw CBD brand of products includes a line of veterinarian-formulated products including tinctures, chews, topicals products in varying strengths and formulas. Its cbdMD Botanicals brand of beauty and skincare products features facial oil and serum, toners, moisturizers, clear skin, facial masks, exfoliants and body care stock-keeping units (SKU). cbdMD, Paw CBD and cbdMD Botanicals products are distributed through its e-commerce websites, third party ecommerce sites, select distributors and marketing partners as well as a variety of brick-and-mortar retailers. Its products are sold through www.cbdmd.com, www.pawcbd.com, and cbdmdbotanicals.com Websites.