The move was designed to set the stage for Thoughtful Brands becoming a completely vertically integrated CBD firm
Thoughtful Brands Inc (CSE:TBI) (OTCQB:PEMTF) has signed up a C$11 million term sheet to acquire Kentucky-based hemp extraction firm American CBD Extraction Corp, the business announced Monday.
Thoughtful will acquire hemp bio-mass along with a fully equipped 41,000-square-foot facility capable of processing more than 1,200 pounds of hemp daily once accredited. From there, Thoughtful Brands intends to market American CBD’s hemp bio-mass to support operations in Europe and also to other customers worldwide.
The business also plans to utilize American CBD’s scientific and technological expertise to improve the formulations of its direct-to-consumer CBD brands, including Nature’s Exclusive, Sativida, and also the recently acquired Golden Path and Wild Mariposa.
The business said the move was designed to set the stage for Thoughtful Brands becoming a completely vertically integrated CBD business.
“The term sheet with American CBD is an essential milestone for the business because it increases the likelihood of expanded margins and will allow us to launch new new products for which we control every step in the process,” Chief executive officer Ryan Hoggan said in a statement. “After we’re able to work directly with the staff at American CBD and within their state-of-the-art Kentucky centre, we expect to be capable to fine-tune and advance our cannabinoid product portfolio”
Shares of Thoughtful Brands will be issued to present American CBD shareholders (or directly to American CBD in the case of an asset acquisition) at a cost of C$0.18 per share. Additionally to the stock, a C$one million bonus will be paid to the functioning team of American CBD when the deal closes and a C$two million milestone payment will be paid once the company achieves production and net sales of more than US$one million.