Starco Brands, Inc. entered into an Agreement and Plan of Merger to acquire Skylar Body, Inc. for $16.4 million.
December 30, 2022
Share
Starco Brands, Inc. (OTCPK:STCB) entered into an Agreement and Plan of Merger to acquire Skylar Body, Inc. for $16.4 million on December 29, 2022. In connection with the Merger and the transactions contemplated by the Merger Agreement, Starco will issue an aggregate of 65,692,736 restricted shares of its common stock, 11,592,805 additional restricted shares of its common stock after an 18-month indemnification period, and offsetting against these additional shares will be the sole recourse for any indemnity claims by Starco against the Company Holders, and 19,321,358 additional restricted shares of its common stock contingent upon the Surviving Company meeting certain sales metrics. Further, in the event that the Company Holders have any indemnity claims against Starco, Starco shall satisfy any such indemnity claims solely by the issuance of additional shares of its common stock, up to 11,592,805 additional shares. The board of directors of Starco and Skylar Body unanimously approved the transaction. Will Chuchawat of Proskauer Rose LLP acted as legal advisor to Starco Brands, Inc. Lauren Geisser of Russ, August & Kabat LLP acted as legal advisor to Skylar Body, Inc.
Starco Brands, Inc. (OTCPK:STCB) completed the acquisition of Skylar Body, Inc. on December 29, 2022. Under terms of the deal, Skylar will operate as a separate businessunit within Starco Brands, continuing to be led by Cat Chen. Ashleigh Barker, Josh Bryant, and Christopher D. Petrossian of Lincoln International acted as financial advisor to Skylar.
Starco Brands, Inc. is a consumer goods company. The Company operates in three segments: Starco Brands, Skylar, and Soylent. The Starco Brands segment is engaged in the development and sales of consumer goods products. The Starco Brands segment includes STCB, AOS, Whipshots Holdings and Whipshots LLC. The Skylar segment is involved in the sale of fragrances. The Soylent segment is engaged in the sale of nutritional products, mainly drinks. Its brands include Whipshots, the vodka-infused whipped cream; Art of Sport, the body care brand designed for athletes; Winona, the indulgent theater-popcorn spray powered by air; Skylar, the fragrance that is both hypoallergenic and safe for sensitive skin; Whipshots; and Soylent, a non-dairy nutrition brand. It commercializes consumer products manufactured by The Starco Group (TSG). TSG is a private label and branded aerosol and liquid fill manufacturer with manufacturing assets in verticals, including paints, coatings and adhesives, and household.
STARCO BRANDS, INC. 
