Kannaway, the direct selling division of Medical Marijuana, announced the acquisition of eXfuse, LLC, dba KZ1, a Japan-based network marketing company. This acquisition is expected to add approximately 1,450 distributors to the company’s sales force in Japan, which the company believes will be a benefit as it ramps up its business in the Japanese market. It will also introduce Nootropic-focused products to Kannaway’s current line of CBD, natural health and beauty products.
The acquisition agreement assumed essentially all of KZ1’s operating assets for a purchase price of $5 million, with a cash closing of $150,000 and conditional obligations to KZ1 of $4.85 million, which will be paid out through royalties and sales overrides in the future.
“The combining of these two companies’ products and distributor genealogies will have an immediate positive effect on revenue in Japan,” said Bill Andreoli, Kannaway President. “I am so excited for Kannaway and KZ1 distributors coming together with such a strong message of hemp and wellness.”