Hemp and CBD company Bespoke Extracts, Inc. (OTCPK: BSPK) will buy Wonderleaf, LLC, a Denver, Colorado-based cannabis company for $225,000 in stock, making its entrance into regulated cannabis space.
The proposed transaction includes a lease for Wonderleaf’s existing extraction facility and the purchase by Bespoke of all of the assets of the business. Bespoke is acquiring the rights to Wonderleaf’s award-winning CO2 extraction products and its line of infused topicals.Â
The company plans to launch several other extraction products immediately after closing the transaction.Â
Total consideration for the proposed acquisition is around $225,000 to be paid 100% in Bespoke common shares. Bespoke will issue 2,500,000 shares as a deposit, and an additional $150,000 of shares at closing according to the daily volume-weighted average price of Bespoke common stock for the 30 consecutive trading days prior to closing.
“The acquisition of Wonderleaf provides Bespoke with an established business at commercial scale and will establish our foothold in the $2.5 billion Colorado cannabis market,” Michael Feinsod, executive chairman and CEO of Bespoke. “We believe this transaction furthers our strategy of entering the cannabis market with businesses that will potentially provide healthy margins and profitability. We plan to work with preferred cannabis farms in Colorado to produce exceptional, small-batch, craft products.”Â
The proposed transaction has been unanimously approved by the Bespoke board of directors and is expected to close upon receipt of state and local regulatory approvals and satisfaction of other customary closing conditions.
Price Action
Bespoke Extracts’ shares traded 6.67% lower at $0.03 per share at the time of writing Thursday morning.
Photo: Courtesy of Jose Luis Sanchez Pereyra on Unsplash
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