SAN DIEGO, Feb. 13, 2019 /PRNewswire/ -- Youngevity
International, Inc. (NASDAQ: YGYI), a leading omni-direct
lifestyle company, announced today that it has entered into a
binding agreement to purchase all the assets of Khrysos Global–a
Tampa, Florida based manufacturer
of hemp-based CBD extraction equipment. This acquisition is
intended 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, and also would give
YGYI ownership of INX Labs and its testing facilities, allowing the
company unprecedented capabilities in regards to formulation,
quality control, and testing standards with its CBD products.
"I'm ecstatic about this purchase and what it signals for this
moment in our company's history," Dave
Briskie, President and CFO of YGYI said about the
acquisition. "The purchase of the assets of Khrysos Global should
be the catalyst that launches YGYI into the hemp-CBD space.
We expect it will serve as a cornerstone of our comprehensive
strategy as it relates to the production, cultivation, and
extraction of hemp, CBD oil, as well as other CBs
(cannabinoids)."
"Our agreement to acquire Khrysos is extremely exciting on a
number of levels," added YGYI CEO and Chairman of the Board,
Steve Wallach. "Beyond the fact that
we believe Khrysos' hemp-CBD extraction technology is far more
efficient than most anything else on the market, we're acquiring a
turn-key business model here. Their systems are applicable to the
entire industry and are immediately implementable across our own
line of HempFX™ products, as well as in offtake agreements we have
through our existing business relationships. We see this as
providing not only immense value to our company, but also to our
investors since we'll be selling not just the extraction systems,
but also generating income servicing and operating these systems
via a rental model."
The agreement to purchase the assets of Khrysos is just the
latest move in YGYI's increasing stake in the rapidly growing
hemp-CBD market: In January, the company entered into an exclusive
cross-marketing agreement with Icelandic Glacial bottled water with
the expressed intent of developing a ready-to-drink CBD product
with the company. "For us, this partnership
with YGYI was a unique proposition which we could not turn down,"
said Dwayne Dundore, President of
Khrysos. "We already have ongoing production operations and
existing customers from coast-to-coast, so being able to partner
with YGYI to upscale our extraction processes should provide a huge
mutual benefit for both companies."
Per the purchase agreement, all assets of Khrysos Global are to
be acquired by YGYI, including all real property, joint venture
agreements, contracts rights, intellectual property, trademarks,
copyrights, and service marks in exchange for a total consideration
of $16,000,000, of which 1,794,972 shares of common stock (having a
deemed value of $14,000,000) and $500,000 shall be 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.
The closing of the transactions contemplated by the purchase
agreement is scheduled for February 15,
2019 and is subject to the satisfaction of various closing
conditions. In accordance with the acquisition, Khrysos will
provide ongoing consulting and advisory services to YGYI as it
pertains to the manufacturing of its proprietary technology, as
well as the production of both CBD extracts and finished goods.
About Youngevity International, Inc.
YGYI, Inc.
(NASDAQ:YGYI), is a leading omni-direct lifestyle company offering
a hybrid of the direct selling business model, that also offers
e-commerce and the power of social selling. Assembling a virtual
Main Street of products and services under one corporate entity
YGYI offers products from the eight top-selling retail categories:
health/nutrition, home/family, food/beverage (including coffee),
spa/beauty, fashion, essential oils, photo, as well as innovative
services. The Company was formed in the course of the summer 2011
merger of Youngevity Essential Life Sciences with Javalution®
Coffee Company (now part of the company's food and beverage
division). The resulting company became Youngevity International,
Inc. in July 2013. For investor
information, please visit YGYI.com. Be sure to like us
on Facebook and follow us on Twitter.
To receive future press releases via email, please visit:
https://ygyi.com/investors/email-alerts/
Safe Harbor Statement
This release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. In some cases
forward-looking statements can be identified by terminology such as
"may," "should," "potential," "continue," "expects," "anticipates,"
"intends," "plans," "believes," "estimates," and similar
expressions, and includes statements regarding the closing of the
acquisition of the assets of Khrysos Global pursuant to the
purchase agreement, establishing Khrysos Industries, Inc as a
global player in the field-to-finish hemp-CBD oil, isolate, and
distillate market, the purchase of the assets of Khrysos
Global being the catalyst that launches YGYI into the hemp-CBD
space and a cornerstone of our comprehensive strategy as it relates
to the production, cultivation, and extraction of hemp and its
inherent CBD properties, Khrysos' hemp-CBD extraction technology
being more efficient than most anything else on the market and
partnering with YGYI to upscale Khrysos' extraction processes
providing a huge mutual benefit for both companies.. These
forward-looking statements are based on management's expectations
and assumptions as of the date of this press release and are
subject to a number of risks and uncertainties, many of which are
difficult to predict that could cause actual results to differ
materially from current expectations and assumptions from those set
forth or implied by any forward-looking statements. Important
factors that could cause actual results to differ materially from
current expectations include, among others, our ability to close
the acquisition of the assets of Khrysos Global pursuant to
the purchase agreement, our ability to establish Khrysos
Industries, Inc as a global player in the field-to-finish hemp-CBD
oil, isolate, and distillate market, the contribution of the
purchase of the assets of Khrysos Global to being the
catalyst that launches YGYI into the hemp-CBD space and a
cornerstone of our comprehensive strategy as it relates to the
production, cultivation, and extraction of hemp and its CBD
properties, the ability of Khrysos' hemp-CBD extraction technology
to be more efficient than most anything else on the market, our
ability to provide a huge mutual benefit for both companies by
partnering to upscale Khrysos' extraction processes, our
ability to continue our international growth, our ability to
continue our coffee segment growth, our ability to leverage our
platform and global infrastructure to drive organic growth, our
ability to improve our profitability, expand our liquidity,
and strengthen our balance sheet, our ability to continue to
maintain compliance with the NASDAQ requirements, the acceptance of
the omni-direct approach by our customers, our ability to expand
our distribution, our ability to add additional products (whether
developed internally or through acquisitions), our ability to
continue our financial performance and the other factors discussed
in our Annual Report on Form 10-K for the year ended December 31, 2017 and our subsequent filings with
the SEC, including subsequent periodic reports on Forms 10-Q and
8-K. The information in this release is provided only as of the
date of this release, and we undertake no obligation to update any
forward-looking statements contained in this release on account of
new information, future events, or otherwise, except as required by
law.
Contacts:
Youngevity International, Inc.
Dave Briskie
President and Chief Financial Officer
1 800 982 3189 X6500
Investor Relations
YGYI investor relations
800.504.8650
investors@ygyi.com
Media Contact
Dwain Schenck
Schenck Strategies
203-223-5230
dwain@schenckstrategies.com
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SOURCE Youngevity International, Inc.