Youngevity International Inc (NASDAQ: YGYI) shares were trading in the green Wednesday after the company announced that it will acquire Khrysos Global, a manufacturer of extraction equipment.
The value of the deal is $16 million, which includes around 1.79 million shares of Youngevity and $500,000 in cash to be paid at the closing. In addition, Khrysos principals will receive warrants to purchase up to 3 million shares at $10 apiece upon the achievement of certain revenue and profit milestones.
In exchange, Youngevity will acquire all of Khrysos Global’s assets, including real estate, joint venture agreements, contract rights, intellectual property, trademarks, copyrights and service marks.
Why It’s Important
Khrysos Global is a Florida-based manufacturer of hemp-based CBD extraction equipment. The acquisition will allow Youngevity to establish its presence in the field-to-finish hemp-based CBD oil, isolate and distillate markets.
Youngevity International is a lifestyle company that provides health, nutrition and other products. Last year, it announced its entry the cannabis space through the launch of the Hemp FX line that includes three hemp-derived cannabinoid products.
In October, the company further expanded the line with two CBD beverages.
The acquisition of Khrysos gives Youngevity access to INX Labs and testing facilities, which the company said will allow it to enhance quality control and testing standards for its CBD products.
The deal is expected to close Feb. 15 and is subject to various closing conditions. After the acquisition, Khrysos will provide consulting and advisory services to Youngevity.
Youngevity shares were up 12.52 percent at $8.18 at the time of publication Wednesday. The stock earlier hit an intra-day high of $9.28.
Photo courtesy of Youngevity.
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