FinancialBuzz.com’s latest Buzz on the Street Show: Featuring Our Corporate News Recap on “NewLeaf Brands Signs Letter of Intent to Purchase Arizona Based CBD Conglomerate Vida Concepts, LLC.”
NewLeaf Brands Inc. (CSE: NLB) (OTC: NLBIF) (FSE: 0NF) is pleased to announce that it has entered into a letter of intent (the “LOI”) with an arm’s length-party, Vida Concepts, LLC (“Vida”) and its wholly-owned subsidiary NXTGEN CBD Supplements, LLC (“NXTGEN”), pursuant to which the Company has agreed to acquire 100% of the issued and outstanding share capital of Vida, its products lines and inventory (the “Acquisition”). In consideration for the Acquisition, the Company has agreed to the following terms: (i) the issuance of 8,517,308 common shares at a deemed value of $0.39 in the capital of the Company to the shareholders of Vida; (ii) make a cash payment of $300,000 USD ($398,610 CAD); and (iii) the Company will enter into an executive employment agreement with Michael Alexander with its terms to be determined.
NewLeaf Brands, Inc. is an innovative Cannabidiol lifestyle Company. Through the Company’s wholly-owned subsidiaries We are Kured, LLC, Drink Fresh Water, LLC, ReLyfe Brand, LLC and TeaLief Brand, LLC the Company’s main business activities encompass the development, marketing, and distribution of CBD products (including vaporizer pens/cartridges, hot/cold tea, softgel capsules and beverages) throughout North America, South America, and Europe. In addition, NewLeaf Brands, Inc. has extensive retail and cultivation land investments in Oregon, USA.
Successful cannabis legalization efforts have steadily attracted new consumers to the market each year. In particular, Baby Boomers have seen a large influx of users over recent years and a survey by MJ Freeway and New Frontier Data shows that U.S. sales by consumers 55 years or older have increased by 50% since 2015. These consumers alone now account for 29% of medical sales and a quarter of all sales. Currently, the U.S. represents the largest cannabis marketplace, primarily due to states that have already legalized recreational cannabis such as California and Colorado. And according to recent findings published in New Frontier Data, the overall sales within the legalized U.S. cannabis industry are expected to reach USD 13.6 Billion during 2019, increasing 32% over 2018’s total worth of USD 10.3 Billion. Additionally, the total combined legal sales throughout the (33) current states with legalized medical programs and (11) legal adult-use programs are projected to grow at a compound annual growth rate (CAGR) of 14%, to reach USD 30 Billion by 2025. Overall, the illicit cannabis market remains a problem, but nevertheless, while total sales of illicit cannabis nationwide were worth an estimated USD 64.3 Billion in 2018, projections now show the market will fall by nearly USD 7 Billion (11%) by 2025.
The Cannabis industry now plays an important economic factor in states where sale and use of such products is legalized, especially for recreational purposes. Notably, U.S. states like California, Colorado, Nevada, and Washington are collectively delivering billions of dollars in annual revenue. And as the legal industry continues to expand, the four states are expected to witnessing their sales continue to grow. For instance, just Colorado alone reported collecting a cumulative of USD 1.02 Billion from marijuana taxes, licenses and fees since the state started collecting them in 2014. And overall, there has been USD 6.5 Billion in total marijuana sales in Colorado since recreational cannabis sales began in January 2014. Additionally, earlier this June, state Governor Jared Polis explained that “Colorado’s cannabis industry is thriving, but we can’t rest on our laurels. We can and we must do better in the face of increased national competition. We want Colorado to be the best state for investment, innovation and development for this growing economic sector. This industry is helping grow our economy by creating jobs and generating valuable revenue that is going towards preventing youth consumption, protecting public health and safety and investing in public school construction.”
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