- Global Wellness (LOAN, PNNRD) has announced it will immediately acquire KaleidoMyco
- Assets acquired in the transaction include intellectual property, formulae, compounds, solutions, research, data, techniques, processes, brand names and tradenames, among others
- Global Wellness will purchase all of the membership interests in KaleidoMyco in two tranches
- The cost of acquiring KaleidoMyco will be C$1 million in restricted common shares payable in three installments over the period of eight months
- Shares of Global Wellness soared 25. 42 per cent to $0.37 as of 12:24 p.m. EDT
Global Wellness (LOAN) announced it will immediately acquire KaleidoMyco.
KaleidoMyco is a company focused on the combination of hemp extract, adaptogens and myco-based ingredients that produce science-based wellness products.
Assets of KaleidoMyco included in the transaction range from intellectual property, formulae, compounds, solutions, research and data to techniques, processes, brand names, tradenames, trademarks and patents.
Other resources include client and vendor lists in relation to functional mushrooms, psilocybin and myco-dosing infused consumer packaged products including sprays, pills, soaps, bath bombs, lotions and salves.
"The KaleidoMyco acquisition will give us access to huge growth in revenues throughout 2021 and beyond. Building a range of functional hemp infused myco products with access to immediate manufacturing augmented with a solid capital base; we believe our success here will be on an impressive scale." Meris Kott, CEO of Global Wellness, said in a release.
Under the terms of the transaction, Global Wellness will purchase all membership interests of KaleidoMyco in two tranches .The first will represent a 70 per cent membership interest while the second will represent a 30 per cent membership interest.
In consideration for purchasing the assets and membership interest, Global Wellness will additionally pay KaleidoMyco $2 million in shares of common stock with a contingent consideration based on how the assets perform.
Additionally, the purchase price will be C$1 million in restricted common shares following the closing of the transaction to be paid in three installments over eight months, representing 70 per cent of the membership interest.
The remaining 30 per cent will be paid in $1 million in restricted common shares in the second year through installments.
Shares of Global Wellness spiked following the news, rising 25. 42 per cent to $0.37 as of 12:24 p.m. EDT.