DionyMed Strengthens Brand Portfolio with Award-Winning Edibles Brand
DionyMed Brands Inc. (“DionyMed” or “Company”)(CSE: DYME, OTC: DYMEF), a
multi-state cannabis brands platform, announced today it has signed a
term sheet for an exclusive multi-state distribution and intellectual
property licensing agreements with Virginia’s Kitchen, LLC d/b/a Blue
Kudu, an award-winning edibles brand and wholesale platform based in
Denver, Colorado. The total consideration for the deal is expected to be
US$5,500,000, consisting of US$5,000,000 at close comprised of
US$4,000,000 in cash and US$1,000,000 in DionyMed subordinated voting
shares and the remaining US$500,000 subject to certain performance
conditions.
Blue Kudu was founded by Andrew Schrot in 2011 and its products include
award-winning chocolate bars, cookies and gummies. Under the term sheet,
DionyMed will manufacture and distribute Blue Kudu products to its
customer network of more than 850 dispensaries across California,
Oregon, Nevada and Massachusetts. In addition, Blue Kudu products will
be available on DionyMed’s Chill direct-to-consumer delivery platform.
Further, Blue Kudu will license and distribute DionyMed’s brands to its
more than 200 dispensary customers, including the award-winning Winberry
Farms vape cartridges.
Completion of the distribution and licensing agreements are subject to
several conditions, including, but not limited to, execution and
delivery of definitive documentation mutually agreeable to the parties,
and DionyMed’s completion of due diligence on Blue Kudu.
Edward Fields, CEO of DionyMed commented, “This agreement demonstrates
the power of DYME Distribution and its ability to accelerate the growth
of promising brands through its unparalleled dispensary reach. The
partnership supports our vision for bringing safe, trusted cannabis
brands to consumers nationwide.”
Andrew Schrot, CEO of Blue Kudu commented, “Blue Kudu is thrilled to
expand into multiple states and partner with one of the industry’s
leading distribution platforms, DYME Distribution. We are very proud and
appreciative of our success in Colorado and look forward to launching
our products in other markets.”
To be added to the DionyMed e-mail distribution list, please e-mail DionyMed@kcsa.com
with DionyMed in the subject line.
About Virginia’s Kitchen, LLC d/b/a Blue Kudu
Blue Kudu is an edible brand based in Denver, Colorado. Blue Kudu has
both medical and recreational licenses for manufacturing, as well as
medical and recreational cultivation licenses.
Blue Kudu’s products include Chocolate bars, Bon Bon’s, Thin Mint
cookies and a new gummy product. Blue Kudu has more than 200 dispensary
customers in Colorado and has sold well over one million bars since
inception. The Company has won several awards and is considered one of
the more popular edibles available in Colorado.
About DionyMed
Founded in 2017, DionyMed is a multi-state cannabis brands platform,
supporting cultivators, manufacturers and award-winning brands in the
medical and adult-use cannabis markets. DionyMed sells branded products
in every category from flower to vape cartridges, concentrates and
edibles. DionyMed serves cannabis consumers through retail dispensary
distribution and direct-to-consumer fulfillment with its growing
portfolio of award-winning brands. Learn more at dionymed.com and
follow @DYME_Inc on Twitter and LinkedIn.
Forward-Looking Information and Statements
This news release contains certain "forward-looking information" within
the meaning of applicable Canadian securities legislation and may also
contain statements that may constitute "forward-looking statements"
within the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995. Such forward-looking
information and forward-looking statements are not representative of
historical facts or information or current condition, but instead
represent only the Company’s beliefs regarding future events, plans or
objectives, many of which, by their nature, are inherently uncertain and
outside of the Company’s control. Generally, such forward-looking
information or forward-looking statements can be identified by the use
of forward-looking terminology such as “plans”, “expects” or “does not
expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”,
“intends”, “anticipates” or “does not anticipate”, or “believes”, or
variations of such words and phrases or may contain statements that
certain actions, events or results “may”, “could”, “would”, “might” or
“will be taken”, “will continue”, “will occur” or “will be achieved” and
include, without limitation, statements related to the structure of the
acquisition, the ability of DionyMed and BLUE KUDU to complete the
acquisition and the satisfaction or waiver of the conditions precedent,
the method of payment of consideration for the assets of BLUE KUDU and
the impact of the acquisition on DionyMed and BLUE KUDU.
In connection with the forward-looking information and forward-looking
statements contained in this press release, the Company has made certain
assumptions, including but not limited to: the Company being able to
complete the acquisition in the matter set out herein, the Company and
BLUE KUDU being able to execute and deliver definitive documentation,
there being no material issues in the due diligence on BLUE KUDU, the
Company and BLUE KUDU being able to obtain all board, shareholder,
regulatory and third-party approvals, there being no material impact on
the businesses of DionyMed or BLUE KUDU, the ability of the Company or
BLUE KUDU to complete the transaction and obtain the necessary approvals.
By identifying such information and statements in this manner, the
Company is alerting the reader that such information and statements are
subject to known and unknown risks, uncertainties and other factors that
may cause the actual results, level of activity, performance or
achievements of the Company to be materially different from those
expressed or implied by such information and statements, including but
not limited to: the Company or BLUE KUDU not being able to complete the
acquisition on the terms described herein or at all, the acquisition not
having the desired impact or there being a material adverse change in
the business of BLUE KUDU, material changes in the Company’s business
plan that would affect the use of proceeds as set out herein, there
being material fluctuations in the Company’s share price and certain
other risk factors set out in the Listing Statement of the Company
available on the Company’s profile on SEDAR at www.sedar.com.
Although the Company believes that the assumptions and factors used in
preparing, and the expectations contained in, the forward-looking
information and statements are reasonable, undue reliance should not be
placed on such information and statements, and no assurance or guarantee
can be given that such forward-looking information and statements will
prove to be accurate, as actual results and future events could differ
materially from those anticipated in such information and statements.
The forward-looking information and forward-looking statements contained
in this press release are made as of the date of this press release, and
the Company does not undertake to update any forward-looking information
and/or forward-looking statements that are contained or referenced
herein, except in accordance with applicable securities laws. All
subsequent written and oral forward- looking information and statements
attributable to the Company or persons acting on its behalf is expressly
qualified in its entirety by this notice.
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