IONIC Brands Enters the Highly Desirable Edibles and Infused Products Category With Signing of Definitive Agreement to Acquire Zoots Premium Cannabis-Infused Edibles
- IONIC BRANDS ACQUIRES ZOOTS PREMIUM CANNABIS-INFUSED EDIBLES
- INFUSED PRODUCTS AND EDIBLES ARE THE FASTEST GROWING CATEGORY IN THE CANNABIS INDUSTRY
- IONIC BRANDS WILL EXTEND ZOOTS EDIBLES BEYOND WASHINGTON AND COLORADO TO OREGON, CALIFORNIA AND SOON TO BE IN NEVADA
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VANCOUVER, British Columbia, April 23, 2019 (GLOBE NEWSWIRE) -- IONIC Brands Corp., formerly Zara Resources Inc. (CSE: IONC; FRA: 1B3) (“IONIC BRANDS” or the “Company”) enters the highly desirable edibles and infused products category with the signing of a definitive agreement (the “Agreement”) to acquire Natural Extractions, Inc. d/b/a Zoots Premium Cannabis Infused Edibles (“Zoots”), based in Washington State.
In accordance with the terms of the Agreement, IONIC BRANDS will acquire Zoots for US$855,000 in cash and issuance of up to 10.7 million common shares of the Company upon closing of the transaction. In addition, the Company will issue up to 5.35 million common share purchase warrants to the shareholders of Zoots, with an exercise price of C$1.33 per share, exercisable over three years.
The acquisition adds Zoots’ edibles and infused products to the IONIC Brands portfolio of consumer-focused cannabis concentrates. The Zoots products expands IONIC Brands' product line and is expected to increase IONIC Brands’ market share in the cannabis retail and wholesale industry. Zoots is a family-operated, state-of-the-art Washington-based edibles company, a first major player in the cannabis-infused edibles market. Zoots’ product line includes drops, gummies, energy shots and hard candies manufactured to offer consistent and reliable dosing. Zoots is forecasting total revenues in 2019 to be approximately US$7.5 million with US$900,000 EBITDA cash flow. Zoots has consumer proven formulas which will be preserved by IONIC Brands.
Zoots Premium Cannabis Infused Edibles are available at licensed marijuana retailers in Illinois, Washington, Colorado and Massachusetts. Founded by brothers Dan, Michael and Patrick Devlin, Zoots products feature cannabis oil derived from Zoots' proprietary Cypress Extraction™ system and blended with other premium ingredients to deliver a safe, reliable and pleasant experience. Zoots emphasizes product safety, quality and consistency, and offers products in serving sizes as low as 5mg THC enabling the consumer to easily manage dosage and control over serving size and effect. “Both IONIC and Zoots are trusted, family-run businesses and cannabis industry front-runners,” said Zoots’ Co-Founder, Patrick Devlin. “The Devlin family is confident that Zoots’ sales will continue to grow given the combination of our proprietary formulas and IONIC Brands’ marketing expertise.”
The 2017 Marijuana Business Factbook, Exclusive Financial Data for Cannabusinesses & Major Investors reported that “Infused products and edibles are the fastest growing category in the cannabis industry, proving extremely popular with recreational consumers and medical patients alike.”
IONIC BRANDS Chairman and CEO John Gorst commented that “Zoots handcrafted and delicious edible products are extremely popular among consumers and complements our enormously popular vaporizer pen. Acquiring Zoots allow us to expand our product offering into the edibles space and expands our current distribution network which is a win-win for our stakeholders.”
About IONIC Brands Corp.
IONIC BRANDS is a national cannabis holdings company based in Washington, led by a team of successful entrepreneurs. The company is focused on building a multi-state consumer-focused cannabis concentrate brand portfolio focusing on the premium and luxury segments. The cornerstone Brand of the portfolio, IONIC, is an accomplished #1 vaporizer brand in Washington State has aggressively expanded throughout the west coast of the United States and is currently operating in Washington, Oregon and California. IONIC BRANDS’ strategy is to be the leader of the highest-value segments of the cannabis market and expand nationally.
ON BEHALF OF THE BOARD OF DIRECTORS
CEO and Director
The CSE does not accept responsibility for the adequacy or accuracy of this release.
All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The risks are without limitations the price for cannabis and related products will remain consistent and the consumer demand remains strong; availability of financing to the Company to develop the retail locations; retention of key employees and management; changes in State and/or municipal regulations of retail operations and changes in government regulations generally. Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the Canadian Securities Exchange, the British Columbia Securities Commission, the Ontario Securities Commission and the Alberta Securities Commission.
Released April 23, 2019