The company will acquire some assets of Washington state cannabis-infused manufacturer Honu Enterprises, inclusive of all intellectual property and certain equipment
Cannabis One Holdings Inc () announced Monday that it has closed a previously annonced pact to acquire certain assets of cannabis-infused manufacturer Honu Enterprises Inc, inclusive of all intellectual property and certain equipment.
Under the terms of the definitive agreement, the gross consideration payable to Honu will be up to about $10.3 million in Class B super-voting shares in the capital of Cannabis One due in equal parts.
Upon closing, Cannabis One will issue CBIS SVS shares equal in value to about $3.4 million , less any funds previously advanced to Honu by Cannabis One, or its subsidiaries. The deal was originally announced last month.
READ: Cannabis One aims to build the premier house of brands
All Cannabis One Holdings SVS shares issued following the definitive agreement will be subject to a contractual lock-up, restricting the transfer of the shares.
"Following on our recent announcement to acquire the 'Fat Face Farms' brand, Cannabis One Holdings believes the addition of the 'Honu' brand family to our growing catalogue of IP further validates Cannabis One's stated strategy of securing 'Best-of-Breed' brands," said Jeffery Mascio, CEO of Cannabis One.
Fat Faced Farms is a cannabis cultivation facility located in Denver, Colorado.
Valuable Honu brand
Honu products have been top performers in several cannabis industry competitions. It was declared the “Best Edibles Company” at the Dope Industry Awards in 2016.
The company offers edibles like Coconut Snowball, and a line of cannabis-infused topicals under the Honu Naturals line which include infused creams, lotions, massage oils, bath products, and lip balms.
Mascio said the popularity of the Honu brand will provide a “catalyst” for Cannabis One opening the door for the company to explore new manufacturing partnerships.
The Honu management estimates the transaction will contribute US$20.3 million in system-wide annual brand revenue through the Honu channel during fiscal 2019.
"The Honu brand is known throughout Washington state for its innovative and high-quality infused products,” said Paul Bohannon, co-owner of Honu Enterprises who is joining Cannabis One as a director of manufacturing. “Joining Cannabis One is a logical next step for us as we look to continue our success in new markets."
Cannabis One is is focused on aggregating and optimizing popular cannabis brands throughout North America. It has a portfolio of clients that offer award-winning products, with extensive markets.
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