Thoughtful will acquire hemp biomass along with a fully equipped 41,000-square-foot facility capable of processing more than 1,200 pounds of hemp per day once licensed. From there, Thoughtful Brands intends to sell American CBD's hemp biomass to support operations in Europe and to other clients worldwide.
The company also plans to utilize American CBD's technological and scientific expertise to enhance the formulations of its direct-to-consumer CBD brands, including Nature's Exclusive, Sativida, as well as the recently acquired Golden Path and Wild Mariposa.
The company said the move is designed to set the stage for Thoughtful Brands to become a fully vertically integrated CBD company.
"The term sheet with American CBD is an important milestone for the company because it increases the likelihood of expanded margins and will allow us to launch innovative new products for which we control every step of the process," CEO Ryan Hoggan said in a statement. "Once we're able to work directly with the team at American CBD and within their state-of-the-art Kentucky facility, we expect to be able to fine-tune and advance our cannabinoid product portfolio."
Shares of Thoughtful Brands will be issued to existing American CBD shareholders (or directly to American CBD in the event of an asset acquisition) at a price of C$0.18 per share. In addition to the stock, a C$1 million bonus will be paid to the operating team of American CBD when the deal closes and a C$2 million milestone payment will be paid once the company achieves production and online sales of more than US$1 million.
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