TORONTO--(BUSINESS WIRE)--DionyMed Brands Inc. (“DionyMed” or “Company”)(CSE: DYME, OTC: DYMEF), a multi-state cannabis brands platform, announced today it has signed a term sheet for an exclusive multi-state distribution and intellectual property licensing agreements with Virginia’s Kitchen, LLC d/b/a Blue Kudu, an award-winning edibles brand and wholesale platform based in Denver, Colorado. The total consideration for the deal is expected to be US$5,500,000, consisting of US$5,000,000 at close comprised of US$4,000,000 in cash and US$1,000,000 in DionyMed subordinated voting shares and the remaining US$500,000 subject to certain performance conditions.
Blue Kudu was founded by Andrew Schrot in 2011 and its products include award-winning chocolate bars, cookies and gummies. Under the term sheet, DionyMed will manufacture and distribute Blue Kudu products to its customer network of more than 850 dispensaries across California, Oregon, Nevada and Massachusetts. In addition, Blue Kudu products will be available on DionyMed’s Chill direct-to-consumer delivery platform. Further, Blue Kudu will license and distribute DionyMed’s brands to its more than 200 dispensary customers, including the award-winning Winberry Farms vape cartridges.
Completion of the distribution and licensing agreements are subject to several conditions, including, but not limited to, execution and delivery of definitive documentation mutually agreeable to the parties, and DionyMed’s completion of due diligence on Blue Kudu.
Edward Fields, CEO of DionyMed commented, “This agreement demonstrates the power of DYME Distribution and its ability to accelerate the growth of promising brands through its unparalleled dispensary reach. The partnership supports our vision for bringing safe, trusted cannabis brands to consumers nationwide.”
Andrew Schrot, CEO of Blue Kudu commented, “Blue Kudu is thrilled to expand into multiple states and partner with one of the industry’s leading distribution platforms, DYME Distribution. We are very proud and appreciative of our success in Colorado and look forward to launching our products in other markets.”
To be added to the DionyMed e-mail distribution list, please e-mail DionyMed@kcsa.com with DionyMed in the subject line.
About Virginia’s Kitchen, LLC d/b/a Blue Kudu
Blue Kudu is an edible brand based in Denver, Colorado. Blue Kudu has both medical and recreational licenses for manufacturing, as well as medical and recreational cultivation licenses.
Blue Kudu’s products include Chocolate bars, Bon Bon’s, Thin Mint cookies and a new gummy product. Blue Kudu has more than 200 dispensary customers in Colorado and has sold well over one million bars since inception. The Company has won several awards and is considered one of the more popular edibles available in Colorado.
Founded in 2017, DionyMed is a multi-state cannabis brands platform, supporting cultivators, manufacturers and award-winning brands in the medical and adult-use cannabis markets. DionyMed sells branded products in every category from flower to vape cartridges, concentrates and edibles. DionyMed serves cannabis consumers through retail dispensary distribution and direct-to-consumer fulfillment with its growing portfolio of award-winning brands. Learn more at dionymed.com and follow @DYME_Inc on Twitter and LinkedIn.
Forward-Looking Information and Statements
This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved” and include, without limitation, statements related to the structure of the acquisition, the ability of DionyMed and BLUE KUDU to complete the acquisition and the satisfaction or waiver of the conditions precedent, the method of payment of consideration for the assets of BLUE KUDU and the impact of the acquisition on DionyMed and BLUE KUDU.
In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions, including but not limited to: the Company being able to complete the acquisition in the matter set out herein, the Company and BLUE KUDU being able to execute and deliver definitive documentation, there being no material issues in the due diligence on BLUE KUDU, the Company and BLUE KUDU being able to obtain all board, shareholder, regulatory and third-party approvals, there being no material impact on the businesses of DionyMed or BLUE KUDU, the ability of the Company or BLUE KUDU to complete the transaction and obtain the necessary approvals.
By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements, including but not limited to: the Company or BLUE KUDU not being able to complete the acquisition on the terms described herein or at all, the acquisition not having the desired impact or there being a material adverse change in the business of BLUE KUDU, material changes in the Company’s business plan that would affect the use of proceeds as set out herein, there being material fluctuations in the Company’s share price and certain other risk factors set out in the Listing Statement of the Company available on the Company’s profile on SEDAR at www.sedar.com.
Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.