CBD Consumer Products Company PureK To Acquire Skincare Brand No B.S. Life
Under the deal, the Vancouver-based company agreed to pay $500,000 in cash, plus a refundable deposit in the amount of $1.5 million. PureK will pay an additional $1 million in cash once the deal closes.
Through PureK's majority-owned subsidiary, PureKana LLC, it agreed to acquire all of No B.S.'s issued and outstanding membership interests.
PureK opted to pay 65% of the purchase price, while PureKana will pay the remaining 35%.
In addition, PureK said it will issue $4 million payable in unsecured convertible debentures, which will carry a 3.25% non-compounding interest.
The debentures – which have a maturity date of two days upon closing of the deal – can be paid either in cash or in PureK's common shares.
No B.S. Life is entitled to obtain $1 million if the company's revenues and EBITDA amount to or surpass $6 million and $360,000, respectively, in this fiscal year, and $2.5 million if the revenue and EBITDA exceed $8 million and $480,000, respectively, in 2022.
Simultaneously, PureK revealed that No B.S. Skincare's product offering would be available both online and in Target stores by the end of February.
The skincare and beauty company focuses on providing greener alternatives within the beauty industry.
Meantime, the move came on the heels of the company's announcement it plans to take over the BudaPets brand.
PureK disclosed recently it agreed to buy a Florida-based manufacturer and distributor of all-natural pet wellness products, Nirvana Group LLC.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.