About noon ET on Tuesday, Freedom Leaf (OTCQB: FRLF) said that it has agreed to acquire ECS Labs LLC and its two subsidiaries, collectively constituting the Green Lotus premium hemp oil brand of products for $14 million in an all-stock transaction.\u00a0The acquisition news has sparked trading in shares of FRLF, which had slumped on Monday to set a 52-week low at 11.3 cents.
\nWith the buyout, expected to close May 27, 2019 pending all requisite approvals, Freedom Leaf will take ownership of a broad product bag including hemp-based CBD tinctures, soft gels, gummies, topicals, cartridges, pet products and drinks.\u00a0\u00a0The Green Lotus brand will join Freedom Leaf\u2019s flagship brands, IrieCBD, a collection of hemp-derived consumer health goods, and NatureBorn, Freedom Leaf\u2019s brand of pet products.\u00a0
\nThe Las Vegas-based company also brings on board a 17-person sales team and a multi-year agreement between Green Lotus and CBD Life SA De CV, one of only a handful of companies holding licenses to legally import and distribute cannabidiol (CBD) in Mexico.\u00a0Shipments under the agreement to CBD Life are expected to commence in the second half of this year, with initial distribution to about 4,000 outlets planned to be expanded to 40,000 outlets in CBD Life\u2019s network in subsequent years.
\nFrom its headquarters in Colorado, Green Lotus manufactures and distributes premium cannabinoid products made from organic industrial hemp.\u00a0\u00a0The company generated U.S. sales of $1.4 million during the first quarter of 2019, accelerating from $2.2 million for all of 2018.\u00a0\u00a0Green Lotus was cash flow positive for the full year 2018.
\nUpon execution of the merger, Marine Corps veteran and Green Lotus founder Carlos Frias will assume the role of chief executive at Freedom Leaf, replacing Clifford Perry.\u00a0\u00a0Further, Richard Groberg and Richard Segerblom will resign from the Freedom Leaf board of directors and Carlos Frias and fellow Green Lotus founder Daniel Nguyen will fill their spots.
\nElsewhere, as the new company focuses on hemp-based CBD consumer packaged goods in North and Latin America, it will exit Freedom Leaf\u2019s greenhouse business in Spain.
\nShares of FRLF spiked in October to a high of 79.5 cents before beginning a tumultuous slide downward, including the aforementioned low yesterday.\u00a0\u00a0The tide is trying to turn following the news, with shares rising 11.5% from Monday\u2019s close at 14 cents to 15.6 cents on high volume of 1.9 million shares through 2:00 PM EDT on Tuesday.
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About noon ET on Tuesday, Freedom Leaf (OTCQB: FRLF) said that it has agreed to acquire ECS Labs LLC and its two subsidiaries, collectively constituting […]<\/p>\n","protected":false},"author":15,"featured_media":41489,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[12418,3],"tags":[13561,13367,13562,13564,13563,13560,13565,13559,13556,13566],"stock_ticker":[],"class_list":["post-41488","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cannabis","category-small-cap-stock-news","tag-cannabis-news","tag-cannabis-stocks","tag-freedom-leaf","tag-frlf-news","tag-frlf-stock","tag-marijuana-news","tag-microcap-news","tag-pot-stocks","tag-small-cap-news","tag-stock-market-news","entry"],"acf":[],"yoast_head":"\n