Today after close, Ionic Brands announced they have reached a definitive agreement with Zoots Premium Cannabis Infused Edibles. Based out of Washington State, Zoots Premium Cannabis Infused Edibles are available at licensed marijuana retailers in Illinois, Washington, Colorado and Massachusetts.
Zoots handcrafted and delicious edible products are extremely popular among consumers and complements our enormously popular vaporizer pen. Acquiring Zoots allow us to expand our product offering into the edibles space and expands our current distribution network which is a win-win for our stakeholders.
John Gorst, CEO/Chairman, Ionic Brands
Zoots is a family-operated company and the first major player in the cannabis-infused edibles market in the state of Washington. Zoots’ product line includes drops, gummies, energy shots and hard candies manufactured to offer consistent and reliable dosing. In the company news release, they stated “Zoots is forecasting total revenues in 2019 to be approximately US$7.5 million with US$900,000 EBITDA cash flow.”
Zoots product line can be found here on the company website.
ZootRocks – Premium Cannabis Infused Nuggets
The terms of the deal are as follows:
Ionic will acquire Zoots for US$855,000 in cash and issuance of up to 10.7 million common shares of the Company upon closing of the transaction.
In addition, the Company will issue up to 5.35 million common share purchase warrants to the shareholders of Zoots, with an exercise price of C$1.33 per share, exercisable over three years.
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