This morning Cannabis One Holdings Inc. announced they are executing their definitive agreement to acquire certain assets of Washington-based Honu Enterprises Inc. Honu is an award-winning, cannabis-infused products brand. The Cannabis One investor deck states they expect Honu to have a big year with US$20.3MM in system wide sales.
In this mornings press release, Jeffery Mascio, CEO of Cannabis One, stated:
Following on our recent announcement to acquire the ‘Fat Face Farms’ brand, CBIS 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…… We anticipate that the market popularity and positive reception of the Honu brand will provide yet another catalyst for Cannabis One, opening the door for us to explore new manufacturing partnerships – with opportunities for the expansion of our own manufacturing infrastructure – into new, state-legal markets
From the company’s website, we can see an example of the edibles menu here:
The terms of the deal were as follows:
The gross consideration for the deal is US$10,280,811 in Class B super voting shares. Honu management also has an earn out where they can earn up to two payments of US$3,426,937 Class B super voting shares as well. The shares will be locked up and released every 6 month interval in 1/3rd amounts, resulting in the full amount of shares being free trading after 18 months. For full details, see the company release here.
FULL DISCLOSURE: Cannabis One Holdings is a client of Canacom Group, the parent company of The Deep Dive. The author has been paid for this work and may or may not own shares of the company. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
