TACOMA, Wash. – IONIC BRANDS CORP. (CSE: IONC) (OTC: IONKF) (FRA: 1B3) (“IONIC BRANDS” or the “Organization”) is pleased to announce that it has completed the acquisition of Organic Extractions, Inc. d/b/a Zoots Premium Cannabis Infused Edibles (“Zoots”), primarily based in Washington, USA, as previously announced on April 23, 2019.
Total consideration for the buy of Zoots is about US$11 million, comprised of US$855,000 money and issuance of 9,635,150 popular shares (“Consideration Shares”) of the Organization at a deemed worth of C$1.30 per share to the vendors of Zoots (“Vendors”), and the assumption of US$606,420 in outstanding debt. The Vendors have also agreed to a lock-up agreement whereby up to 70% of the Consideration Shares would be locked up and released more than nine months. The issuance of shares is topic to approval by the Board and CSE.
In addition, the Organization will challenge up to 4.eight million popular share buy warrants to the shareholders of Zoots, with an exercising price tag of C$1.33 per share, exercisable more than 3 years.
The acquisition adds Zoots’ edibles and infused goods to the Company’s portfolio of customer-focused cannabis concentrates. Zoots goods expands the Company’s existing solution line and is anticipated to enhance the Company’s industry share in the cannabis retail and wholesale market. Zoots is a state-of-the-art, Washington State-primarily based, cannabinoid edibles firm, a initial significant player in the cannabis-infused edibles industry. Zoots’ solution line consists of drops, gummies, power shots and really hard candies manufactured to supply constant and dependable dosing. Zoots is forecasting total revenues in 2019 to be about US$three. million with US$360,000 EBITDA money flow. Zoots has customer verified formulas which will be preserved by IONIC BRANDS.
Zoots Premium Cannabis Infused Edibles are readily available at licensed marijuana retailers in Illinois, Washington, Colorado, and Massachusetts. Founded by brothers Dan, Michael and Patrick Devlin, Zoots goods function cannabis oil derived from the Zoot’s proprietary Cypress Extraction™ program and blended with other premium components to provide a protected, dependable and pleasant practical experience. Zoots emphasizes on solution security, high quality and consistency, and delivers goods in serving sizes as low as five mg THC enabling the customer to very easily handle dosage and manage more than serving size and impact. As component of the integration of Zoots into the Company’s operations, “Both Ionic and Zoots are trusted, household-run corporations and cannabis market front-runners,” stated Zoots’ Co-Founder, Patrick Devlin. “Zoots and Ionic target shoppers searching for an uncomplicated and intuitive way to consume cannabis. Edibles are promptly gaining in reputation worldwide and we offer extremely preferred cannabis consumption alternatives.”
In February 2019 Zion Market place Study published “Cannabis Edibles Market place by Sort (Strong Edibles, Topical Edibles, Inhalation, and Liquid Edibles), by Preparation (Cannabidiol and Tetrahydrocannabinol), and by Application (Cancer, Epilepsy, Arthritis, A number of Sclerosis, Alzheimer’s, and Other people): International Sector Point of view, Complete Evaluation, and Forecast, 2018–2025.” According to the report, the worldwide cannabis edibles industry was valued at about USD two,376 million in 2018 and is anticipated to create about USD 11,564 million by 2025, at a CAGR of about 25.four% in between 2019 and 2025. The legalization of cannabis in Canada is attracting an in depth variety of industry players. Hence, enhanced social recognition connected to cannabis across numerous regions is probably to supply substantial possibilities in the cannabis edible goods industry in the future.
IONIC BRANDS Chairman and CEO John Gorst commented, that “Ionic Brands has been operating closely with the Zoots leadership group to integrate organizations and transition the Zoots line of handcrafted and trusted edible goods. Our best-rated Ionic vaporizer pen targets shoppers interested in luxury cannabis goods that can be discreetly consumed which make Zoots edibles a all-natural match for our brand method. The Zoots acquisition expands our industry segments to the well-known edibles space and expands our distribution network all through the United States. We are also incredibly pleased to have Mr. Dan Devlin continues as the Company’s Chief Operating Officer.”
About IONIC BRANDS CORP.
The Organization is focused on developing a multi-state customer-focused cannabis concentrate brand portfolio focusing on the premium and luxury segments. The cornerstone Brand of the portfolio, IONIC, is the #1 vaporizer brand in Washington State and has aggressively expanded all through the West Coast of the United States. The brand is at present operating in Washington, Nevada, Oregon and California. IONIC BRANDS’ method is to be the leader of the highest-worth segments of the cannabis industry and expand nationally.