ANTA ROSA, CALIFORNIA and CALGARY, ALBERTA / ACCESSWIRE / PRESS RELEASE October 2, 2019 / GABY Inc., a U.S.-focused California based consumer packaged goods company operating in both the regulated cannabis sector and in the hemp-derived CBD market in the mainstream grocery channel, announced today that the Company has signed a definitive agreement to acquire all issued and outstanding securities of 2Rise Naturals LLC, in an all-share transaction valued at USD$1 million. The proposed transaction will enhance GABY’s portfolio of CBD products and is a natural fit with GABY’s current portfolio of CBD products, LuLu’s Chocolate and the Sonoma Specific CBD skincare line. 2Rise has gained market popularity for its transparency in sourcing and only using top-quality certified organic ingredients. 2Rise’s promises customers 100% plants, no chemicals.
Highlights
- 2Rise owns a portfolio of high-quality organic CBD products including, THC-Free CBD tincture, full-spectrum tincture with turmeric or vanilla, and high potency full spectrum capsules. 2Rise products are focused on the CBD supplement market and complement GABY’s existing CBD line Lulu’s Chocolates and Sonoma Specific skincare line.
- 2Rise products are distributed in 100 stores nationwide, including high-end California health food chain Erewhon. GABY expects to be able to rapidly expand distribution through GABY’s existing mainstream distribution.
- 50% of 2Rise sales are direct retail via their website and are heavily driven by repeat customers
"2Rise is the perfect example of our acquisition framework. A reputable brand that has shown high customer loyalty with strong repeat customer purchases that we can rapidly grow by introducing to a wider customer base using our developed mainstream and regulated sales channels," said Margot Micallef, founder and CEO of GABY, in a public statement. "Kendra has done a tremendous job creating a product that resonates with customers by always delivering on the 2Rise promise of high-quality 100% organic plant-based products. We look forward to carrying on that promise and introducing it to a much wider group of customers."
Transaction Terms
GABY propose to acquire all issued and outstanding securities of 2Rise in an arm’s length transaction on the basis of common shares of GABY being issued to the holders of 2Rise securities in exchanged for all issued and outstanding 2Rise securities based on GABY share price calculated based on the 5-day volume-weighted average trading price prior to and including the date of the announcement of the Transaction at an enterprise value of USD$1.0 million in respect of 2Rise.
As part of the Transaction GABY will issue 500,000 warrants giving the holder of the warrant for a period of two years the right to purchase 500,000 GABY common shares at a price of $0.45.
The closing date for the purchase of 2Rise by GABY shall be on or about October 30, 2019.
