cbdMD Inc (YCBD)

[crudeoil24]

LEVB > news: Level Brands Signs Definitive Merger Agreement to Acquire Nationally Recognized Cannabidiol (CBD) Consumer Products Brand cbdMD
8:30 am ET December 4, 2018 (BusinessWire) Print
Level Brands, Inc. (NYSE American: LEVB) (the "Company") announced today that it has signed a definitive merger agreement to acquire Cure Based Development, LLC the owner, operator and manufacturer of nationally recognized consumer cannabidiol (CBD) brand cbdMD, in a two-step merger for merger consideration of 15,525,000 shares of Level Brand's common stock, with an earnout potential of up to an additional 15,525,000 shares if net revenue targets aggregating $300 million are met within 60 months of the closing date.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181204005269/en/

The closing of the merger is subject to a number of customary conditions precedent as well as both the passage of the Agricultural and Nutrition Act of 2018, which is commonly referred to as the 2018 Farm Bill, or such other titled Federal legislation, which, when approved by the President of the United States, contains a permanent declassification of cannabidiol (CBD) as a controlled substance under Federal law.

Formed in August 2017, Cure Based Development began reporting revenues in 2018 and for the eight months ended August 31, 2018 reported revenue of $3.2 million and in October 2018 had monthly sales exceeding $1.0 million. Cure Based Development's current product offerings include gummies, tinctures, topical, bath bombs, oils, and pet products. Its products are available online at www.cbdMD.com or 700 stores in 40 states. Cure Based Development currently employs over 50 people in its corporate, manufacturing and distribution sites based in Charlotte, NC.

"With the passage of the 2018 Farm Bill, CBD will no longer be listed as a Schedule 1 controlled substance which we believe will open the access to national retailers for CBD consumer products. We believe that the next three to five years will produce a few leading CBD brands, and our goal is to be the leader in the space," said Martin A. Sumichrast, Chairman and CEO of Level Brands.