CHARLOTTE, N.C.--(BUSINESS WIRE)--Level Brands, Inc. (NYSE American: LEVB), an innovative marketing and licensing company that provides bold, unconventional, and socially responsible branding for leading businesses, today announced plans for the national expansion of KURE Corp.’s (“KURE”) specialty vape stores.
KURE, a wholly-owned subsidiary of Isodiol International (CSE: ISOL) (OTC: ISOLF) (FSE: LB6A.F), a Level Brands client, plans to expand across the United States and Canada by opening brick-and-mortar locations, acquiring existing vape stores, and launching its new KURE Vape Pod™ concept.
To launch its new pod concept, KURE has teamed up with SG Blocks, Inc. (NASDAQ: SGBX), another Level Brands client and leading designer, innovator, and fabricator of container-based structures, creating a truly unique experience for the vaping industry. The KURE Vape Pod™ design offers the same quality customer experience of the company’s brick and mortar locations, but in a smaller, eco-friendly footprint, using 20’ x 24’ shipping container structures from SG Blocks.
“We strive to help our clients grow their businesses in powerful ways,” said Kathy Ireland, Level Brands Chairman Emeritus and Chief Brand Strategist. “This partnership between KURE and SG Blocks is a great example of how we maximize our relationships between our brand partners.”
Level Brands and Isodiol entered into a 10-year licensing agreement in January 2018. Under the terms of the agreement, Level Brands earns a 3% royalty on all gross sales of branded products developed from the partnership, including new kathy ireland® Health & Wellness and I’M1 by Isodiol CBD product lines to be sold at KURE locations, plus additional quarterly payments for brand management services.
Level Brands will earn additional fees from each Vape Pod opened under the SG Blocks and Isodiol relationship. SG Blocks retained Level Brands for strategic advisory and consultancy services in September 2017.
KURE has signed a representation agreement with Rhett Batanides of Newmark Knight Frank (NKF), one of the world's leading commercial real estate advisory firms. Newmark Knight Frank is operated by the Newmark Group, Inc. (NASDAQ: NMRK). NKF has already identified several national real estate investment trusts who will provide Class A retail space for the new KURE Vape Pod™ locations. The initial rollout plan includes 10 cities across the US, with additional cities to be announced.
KURE currently operates 12 brick-and-mortar stores. It’s estimated that the initial 10 Vape Pod locations will require a total capex of $2 million.
“KURE has established itself as a leading specialty vape retailer, and this expansion further reflects the demand KURE has been receiving from its customers,” said Marcos Agramont, CEO of Isodiol. “In addition to aiding in KURE’s ongoing expansion efforts, Isodiol’s recent acquisition of KURE paves the way for us to broaden KURE’s offering by providing its consumers with a variety of innovative CBD products.”
“This deal is a great example of how we operate,” stated Martin Sumichrast, Chairman and CEO of Level Brands. “We’ve created win-win opportunities for our clients and partners, positioning them for accelerated growth, while offering our investors the potential for robust shareholder value improvement. The rollout of the first 10 locations is expected to begin in the summer of 2018, providing a further boost to near-term revenue growth for Level Brands.”
For more information on Isodiol, please visit www.isodiol.com.
For more information on KURE Corp., please visit www.kurevapes.com.
For more information on SG Blocks, please visit www.sgblocks.com.
About Level Brands, Inc. (www.LevelBrands.com)
Level Brands creates bold, unconventional, and socially responsible branding for leading businesses. Level Brands specializes in corporate brand management and consumer products marketing art, beauty, fashion, health and wellness, and entertainment. Licensed brand marketing is at the core of the Level Brands businesses, among which are Ireland Men One or I’M1, for millennial men and the women who love them; Encore Endeavor One or EE1, corporate brand management and producer of experiential entertainment events and products across multiple platforms; kathy ireland® Health & Wellness; and Beauty & Pin-Ups, Level Brands’ hair-care and disruptive women’s-products brand.
This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by the use of words such as "should," "may," "intends," "anticipates," "believes," "estimates," "projects," "forecasts," "expects," "plans," and "proposes." These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including, without limitation, statements made with respect to our material dependence on our relationship with kathy ireland® Worldwide, our limited operating history, our ability to expand our business and significantly increase our revenues and our ability to report profitable operations in future periods, among others. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading "Risk Factors" in Level Brands, Inc.'s Annual Report on Form 10-K for the fiscal year ended September 30, 2017 as filed with the Securities and Exchange Commission (the "SEC") on December 26, 2017 and our other filings with the SEC. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are generally outside the control of Inuvo and are difficult to predict. Level Brands, Inc. does not undertake any duty to update any forward-looking statements except as may be required by law.