CV Sciences Inc (CVSI)

[Wolf-man jack]

WQLF SAYS: I think the agreement acquisition with Extract Labs was a good mix if the major arrangement pertained to moving the companies headquarters to Colorado and the purpose of extracting some of our product line. The arrangement to run both companies with some identical products was my only drawback. We’ll see if the merger deal can still be done. The only drawback is the Extract Labs partnership with Higher Love Wellness. We do know one fact in the proposed merger is that Extract Labs And Lower Love Wellness had a combined annual sales lower than the mentioned earnout payment of $3,500,000. It appears that CV Sciences will break even if we can add another $1.5 to $2.0 million in annual revenue. I’m guessing that the two companies were going to bring around $2.0 to $2.5 million to the table. Maybe the fallout from the proposed acquisition may be a blessing in disguise. Imho Have Faith Have Patience Have Mercy WQLF Ahooooooo

“ In addition to the consideration payable at closing, and as further consideration for the Acquisition, the Sellers shall be entitled to receive up to two additional earnout payments payable in shares of restricted common stock of the Company (the “Earnout Amount”). The Earnout Amounts shall be based on Extract Labs’ Net Revenue (as defined in the Purchase Agreement) generated during the 12-month period following the closing date (for the first calculation period) or 24-month period following the closing date (for the second calculation period) and will be calculated as follows:
•
If Extract Labs’ Net Revenue is at least $4,600,000 in the relevant calculation period, then the Earnout Amount for such period will be $300,000.
•
If Extract Labs’ Net Revenue is at least $4,300,000 but less than $4,600,000 in the relevant calculation period, then the Earnout Amount for such period will be $200,000.
•
If Extract Labs’ Net Revenue is at least $4,000,000 but less than $4,300,000 in the relevant calculation period, then the Earnout Amount for such period will be $100,000.
•
If Extract Labs’ Net Revenue is at least $3,500,000 but less than $4,000,000 in the relevant calculation period, then the Earnout Amount for such period will be $50,000.
•
If Extract Labs’ Net Revenue is less than $3,500,000 in the relevant calculation period, then the Earnout Amount for such period will be $0.