PureK To Acquire BudaPets All-Natural Pet Wellness Brand
PureK Holdings Corp. (TSXV:PKAN) plans to acquire the BudaPets brand.
The Vancouver company will purchase Nirvana Group LLC, a Florida-based producer and distributor of all-natural pet wellness products.
Under the deal, PureK agreed to issue $1.5 million in unsecured convertible debentures, which bear a 3.25% non-compounding interest per year.
According to Monday's press release, Nirvana members could also receive earn-out compensation of $500,000, which is obtainable in common share if the Florida company's revenue surpasses $1 million for fiscal 2021.
In addition, Nirvana Members are eligible to receive an additional $1 million if its revenue exceeds $2.5 million in 2022.
PureK CEO Kathy Casey said they are "excited" that BudaPets is joining their existing portfolio pet care portfolio, including PureKana Pet division of the company's CBD subsidiary.
"BudaPets fits perfectly into PureK Holdings' growth strategy focusing on the global pet care, skincare, and plant-based food and beverage categories," Casey added.
BudaPets' product offering consists of Calming, Hip and Joint, Omega Bites, and Dental Chews products.
The company noted that products contain CBD from hemp extract as well as various natural ingredients developed to "improve the quality of life of pets and of livestock."
"We are dedicated to promoting the well-being of pets by creating high-quality, natural products informed by science," BudaPets founder Diana Albadan said.
The move comes on the heels of PureK's recent announcement it will obtain a skincare and beauty company.
CBD Pet Sector In 2020
Meantime, other industry peers also oped to venture into the CBD pet space over the last year.
In May, the Denver-based Pure Harvest Cannabis Group Inc. (OTCQB:PHCG) kicked off a new business focusing on the CBD pet market. The newly launched company, Wild Pet Blends, produces blends using pure Colorado CBD oil.
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