Youngevity International, Inc. (YGYI) announced that it completed the closing of the acquisition of all the assets of Khrysos Global.
This acquisition of the Tampa, Florida based manufacturer of hemp-based CBD extraction equipment is expected to establish YGYI ‘s newly formed, wholly owned subsidiary, Khrysos Industries, Inc., as a global player in the field-to-finish hemp-CBD oil, isolate and distillate market. It also gives YGYI ownership of INX Laboratories and its testing facilities, allowing the company capabilities in regards to formulation, quality control and testing standards with its CBD products.
“We set out a plan to create a vertical opportunity in the hemp space,” said Dave Briskie, president and CFO of YGYI. “This is a significant step as it relates to the production, cultivation and extraction of hemp and CBD oil as well as other CBs (cannabinoids). We proudly welcome Dwayne Dundore as the president of newly formed Khrysos Industries along with his entire and very capable team at Khrysos and INX Labs.”
Pursuant to the purchase agreement all assets of Khrysos Global and all shares of capital stock of INX Laboratories and INX Holdings (a real estate holding company) became the property of YGYI, including all real property, joint venture agreements, contracts rights, intellectual property, trademarks, copyrights and service marks used in Khrysos’ business in exchange for a total consideration of $16 million, of which 1,794,972 shares of common stock (having a deemed value of $14 million) and $500,000 was paid at closing. In addition, YGYI agreed to issue to the principals of Khrysos, subject to the approval of stockholders and the Nasdaq Stock Market, contingent consideration warrants to purchase up to 3,000,000 shares of Common Stock at an exercise price of $10 per share upon the achievement of certain revenue and net income milestones.
“I am really excited to be a YGYI shareholder and part of the Youngevity family,” said Dundore. “I look forward to making a meaningful contribution to both the top and bottom line of the company and feel strongly that our capabilities and plans for expansion should create additional value for myself and all shareholders.”
