Big acquisition announced! Laguna Blends to Acquire 100% Stake in a Global Cannabis Leader with Unaudited Annualized Sales of Approximately $12,000,000 USD
VANCOUVER, BC / ACCESSWIRE / March 13, 2017 / Laguna Blends Inc. (CSE: LAG) (OTC Pink: LAGBF) (Frankfurt: LB6A.F) (the "Company" or "Laguna") is pleased to announce that it has signed a letter of Intent (LOI) to acquire 100% interest of a global Cannabis leader with unaudited annualized sales of $12,000,000 USD and adjusted EBITDA of $1,588,000 USD.
This acquisition is a major step forward in establishing Laguna as an international leader in the global cannabis industry. The Target company has an extensive portfolio of intellectual property and hemp driven CBD products including isolates, full spectrum oils, pain creams, oral sprays and other nutraceutical products. The Target company also has a medical division and is currently focusing on Latin America to develop cannabis-based pharmaceutical products.
The Hemp Business Journal estimates the total U.S. CBD market will grow to a $2.1 billion market in consumer sales by 2020 with $450 million of those sales coming from hemp-based sources.
Ray Grimm, CEO of Laguna stated, "This acquisition represents Laguna's first foray into the rapidly growing international cannabis space. With this acquisition, through licensing deals with licensed growers and manufacturers in legal markets, Laguna is now able to capitalize on the global marketplace by utilizing existing infrastructure. The synergies of the combined entities will allow us to be more aggressive in our expansion and growth strategy and I'm very confident we will be able to create substantial shareholder value through this transaction."
The Target company has recently acquired a leading brand of innovative cannabis infused beverages that are currently sold in California and Colorado. They also anticipate to close contracts in Canada and several other U.S. markets within the next 90 days. More information will be provided on these contracts in the coming weeks.
The CEO of the Target company stated, "As we move forward through the restructuring process of the combined entities, we will continue to focus on high growth strategies and additional acquisitions. To stay competitive amongst our competition, it is very important that we diversify our revenue verticals with new initiatives and product offerings which will add tremendous value to our current and future shareholders."
The terms and conditions of the pending transaction are not disclosed. The transaction, which is subject to customary closing conditions and due diligence, is expected to close in Q2-2017.
About Laguna Blends Inc.
Laguna Blends is a market leader in the distribution of Hemp and CBD products. Lagunas growth strategy includes acquiring and incubating companies who formulate and or manufacture cannabis products. Laguna Blends markets hemp derived products utilizing its B to B Network along with driving traffic to its online marketplace.
It's Lagunas intent to provide the highest quality hemp derived products and experience for the end user, utilizing a proprietary nanotechnology in many of its consumable and topical skin care products. Laguna is currently seeking joint ventures and acquisitions to expand its portfolio and will aggressively begin international expansion into Latin America, Asia and Europe in 2017.