IONIC BRANDS Acquires the Dabulous Brand from WW Agriculture - An Economy Brand of Infused Products TACOMA, WA / ACCESSWIRE / June 23, 2020 / IONIC BRANDS CORP. (IONC.CN)(OTC PINK:IONKF)(FRA:1B3) ("IONIC BRANDS" or the "Company") is pleased to announce that it has acquired selected assets of WW Agriculture, more specifically the Dabulous economy brand of infused products.
The Company originally entered into a Letter of Intent ("LOI") to acquire WW Agriculture on June 20, 2018. Under the terms of the LOI, the Company's licensed partner, Ionic Washington, began to provide co-manufacturing services including but not limited to the sales and manufacturing of a newly developed brand called Dabulous extracts. While the Company was unable to complete the acquisition of WW Agriculture due to economic challenges in 2019, we continued to co-manufacture and sell the Dabulous products. Since July 2018, the Company has positioned the Dabulous brand as its economy extract brand allowing the Company to service not only the premium consumer segment of the market but the critical economy segment. The Company now has a broader scope of products to capture a more significant share of retail shelf space in the Washington market. The Company will be launching the Dabulous product line in the Oregon market in August 2020. The Company sold 198,036 units and generated $1,759,208 in sales in 2019 from the Dabulous brand.
Full Consideration paid and terms of the Omnibus agreement and bill of sale were as follows:
The Company assumed a note payable with a term of 34 months in the amount of US$195,000, with a cash payment of US$595,000.00.
Cash payment was paid over the course of the co-manufacturing agreement which began on September 1, 2018.
The sale to be consummated upon the full payment of legal fees in the amount of US$12,500 Additionally, the Company purchased US$200,000 in various oil extraction equipment for total consideration paid for the Dabulous Brand of US$989,500.
Ionic Brands Chairman and CEO John P. Gorst commented that, " while we will always remain true to our core brand strategy of premium cannabis products with the Ionic and Zoots brands, we recognized in early 2019 the value of providing a broader range of products priced for a more cost-conscious consumer was important to grow revenue. We are excited about the potential growth of this particular consumer segment."
