Laguna Blends (LAG.C) continued to execute on its growth strategy when the company announced today that it had finalized a 19% equity stake in Carlsbad Naturals LLC, a Californian manufacturer and distributor of Nano-amplified CBD water.
According to the news release, Laguna forked over an aggregate US$796,000 payment to Carlsbad Naturals as part of the deal.
The agreement outlines that US$250,000 will come in the form of cash while the remaining US$546,000 will come in the form of common shares in Laguna.
The common shares issued pursuant are subject to a four-month hold, with the first 1/12 of the whole amount released four months and one day after issuance. A further 1/12 while be released every subsequent month thereafter.
Carlsbad Naturals’ calling card is its Nano Water product line which the company has created through the application of quantum physics and nanotechnology.
The result is a unique delivery system that directly feeds your cells with instantly bio-available materials.
Absorb more, use less. Makes sense.
Carlsbad Naturals reported revenues of $521,000 from September 1, 2016 to December 31, 2016. Good, they’re generating cash.
Laguna already likes what it sees and is in discussion with Carlsbad Naturals to gain majority control of the company.
President and CEO of Laguna Blends, Ray Grimm, commented on the deal, “Laguna has worked diligently to close the equity transaction and is very bullish on the future revenue potential of Carlsbad Naturals. As previously announced Laguna currently sub leases office and warehouse space to Carlsbad and our co-working relationship already has resulted in mutually beneficial opportunities.”
Carlsbad Naturals’ COO, Tory Nihart, added, “Carlsbad and Laguna have a synergistic relationship, combining management and personnel. We are excited to have Laguna as a strategic partner and now as a shareholder in Carlsbad. I believe that this is the beginning of a very long and prosperous relationship.”
Laguna will add to the fire of this agreement as it intends to generate additional CBD water sales through its Club 8 online marketplace and its B2B distribution channel in both the USA and Canada.
Laguna will continue to seek out international expansion opportunities in Asia and Europe during the coming fiscal year.
You can check out what all the fuss is about with Carlsbad Naturals by going to the company’s website.
FULL DISCLOSURE: Laguna Blends is NOT a client of EQUITY.GURU and has no connection to the author.Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.