LAGUNA ANNOUNCES LETTER OF INTENT WITH CARLSBAD NATURALS CBD BOTTLED WATER COMPANY TO ACQUIRE 60% EQUITY INTEREST AND EXCLUSIVE LICENSES IN A TRANSACTION VALUED AT $1.8 MM USD
Laguna Blends Inc. (LAG.C) has signed a letter of intent with Carlsbad Naturals whereby Laguna and Carlsbad plan to enter into an equity acquisition and exclusive licence agreement for the purpose of pursuing mutually beneficial business opportunities in the cannabidiol (CBD) bottled water industry and CBD ingestible products industry.
Carlsbad is a market leader in the distribution and sales of nano-amplified CBD bottled water in the United States. The company has a proprietary process of incorporating CBD into its formulation. Carlsbad Naturals has achieved unaudited U.S. sales in excess of $500,000 in its first year of business as of Aug. 31, 2016.
The hemp cannabinoid innovator, Isodiol, sources nano-amplified hemp CBD to manufacturers to create unique finished products. Isodiol is a shareholder in Carlsbad.
"We are proud to announce the alignment of Laguna Blends and Carlsbad Naturals," stated Jared Berry, co-founder of Carlsbad Naturals. "Laguna Blends' extensive client base and distribution network will fulfill the growing demand for hemp CBD products worldwide."
Stuart Gray, Laguna's chief executive officer, said: "With the growing awareness and market demand of CBD worldwide Laguna is positioning itself to be a market leader in the sale of CBD bottled water. In addition to the current sales growth of Carlsbad, Laguna can generate CBD water sales through its existing affiliates in the U.S. and Canada. Laguna currently is in discussions internationally with wholesale distributors regarding Carlsbad white label opportunities."
Ray Grimm, Laguna's president, stated: "The partnership with Carlsbad firmly solidifies Laguna as a unique player in the crowded multibillion-dollar bottled water industry. The team of doctors that formulated the Carlsbad water did so with the sole purpose of creating a high alkaline water offering the benefits of CBD. Many believe this to be the next evolution in the water industry, providing unique health benefits due to the proprietary nanotechnology. Carlsbad CBD water provides antioxidants at the cellular level along with providing cellular hydration and energy."
"Carlsbad Naturals' all-natural hemp CBD nano-amplified water has been a game changer for the people who frequent our location," stated Larry Banegas, founder of the Kuseyaay Wellness Center on the Barona reservation. "Since the beginning of time, indigenous people have always been in tune with nature and sought benefits from plant botanicals. With today's natural retail products, however, consistency can be difficult to achieve. The formulators of Carlsbad Naturals' water have achieved consistency and quality at the highest level. It doesn't get more natural than this. Visitors to our facility have come to rely on an ample supply of this unique bottled water."
Pursuant to the terms of the proposed transaction, Laguna will have the ability to acquire majority control of the company with total equity interest of 60 per cent. Laguna will initially purchase 19-per-cent equity interest in Carlsbad for a one-time payment of $570,000 (U.S.) (paid for in Laguna common shares). Laguna will then have a 120-day option from the date of a signed definitive agreement to acquire an additional 41-per-cent interest for $1.23-million (U.S.) (paid in shares and cash). The common shares issued are subject to a six-month hold and a lock-up leak-out agreement.