IONIC Brands Corp., formerly Zara Resources Inc. (CSE: IONC) announces today that it has entered into a Letter of Intent to acquire licensed cannabis volatile extraction and manufacturing assets of Kavry Management LLC.
IONIC BRANDS signed a LOI dated April 4, 2019 with Kavry subject to definitive documentation and for a purchase price of US$2,900,000 in cash and shares, with the shares valued based on the closing price of the Company’s shares immediately preceding the date of closing.
The Company will acquire the existing facility, all inventory and equipment of the current licensed cannabis volatile extraction in Adelanto, California. The volatile extraction is the most efficient and rapid way of extracting cannabis. To qualify as a volatile facility, businesses must meet a much stricter set of criteria. The extraction market is in its infancy with great potential to gain market share.
The facility in Adelanto is 48,000 square feet of which IONIC Brands will have the option to purchase for 12 months for US$7,000,000. IONIC Brands will be taking 3,700 square feet immediately which includes a fully operational extraction facility. The licenses included are a type 7 volatile license and a Type 11 Distribution License. IONIC Brands has the option to take over an additional 12,000 square feet of space at the end of 2019. Additionally, 8,000 square feet along with a cultivation operation are available to IONIC Brands. The Company will make the determination whether to include this license as a part of the purchase for an additional US$1,600,000. The facility will have the capacity for the Company to fulfill all of its manufacturing needs for the State of California where is will be able to produce its Vape, Edible and other concentrate brands.
Chairman and CEO John Gorst states, “the licensed volatile extraction and manufacturing facility in California is a tremendous asset for Ionic Brands as it fits our strategic plan of vertical integration. Securing this facility is a great foundation for IONIC BRANDS in California to advance our current premium luxury Cannabinoid products. We also see substantial development potential of new revenue streams through manufacturing in California.”
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. The Company has aggressively expanded throughout the west coast of the United States. IONIC 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.
Please see full disclaimers at www.TheSeedInvestor.com applicable to all content provided by TSI, wherever published or re-published: http://theseedinvestor.com/about/disclaimer
Disclaimer: This release/advertorial is a commercial advertisement and is for general information purposes only. This release/advertorial does not constitute an offer or solicitation to buy or sell any securities or individualized investment advice. This is a native advertisement, meaning it is an informational paid marketing piece. THESEEDINVESTOR.com (TSI) makes no recommendation that the securities of the companies profiled or discussed on this website should be purchased, sold or held by viewers that learn of the profiled companies through our website. Please review all investment decisions with a licensed investment advisor. TSI receives payments ranging from approximately $25,000 to $150,000 to publish and/or distribute advertisements on behalf of a company. TSI retains any excess sums after expenses as its compensation. TheSeedInvestor.com and its owners, operators and affiliates may benefit from any increase in the share prices of the profiled companies. TheSeedInvestor.com may be paid for services using options or free-trading shares. TheSeedInvestor.com and/or its owners, operators and affiliates may be selling shares of stock at the same time the profile (or other information) is being disseminated to potential investors; TheSeedInvestor.com will not advise when it or its affiliates decide to sell. Investors must make all investment decisions based on their own judgment of the market and the particular securities.
This advertorial contains forward-looking statements that involve risks and uncertainties. This advertorial contains or incorporates by reference forward-looking statements, including certain information with respect to plans and strategies of the featured company. As such, any statements contained herein or incorporated herein by reference that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words “believe(s),” “anticipate(s),” “plan(s),” “expect(s),” “project(s),” “will,” “make,” “told,” “could,” “might,” and similar expressions are intended to identify forward-looking statements. There are a number of important factors that could cause actual events or actual results of the company to differ materially from these indicated by such forward-looking statements. Certain statements contained herein are forward-looking statements as defined in Section 27A of the Securities Act of 1933 and 21E of the Exchange Act of 1934. Such statements include, without limitation, statements regarding business, financing, business trends, future operating revenues and expenses. There can be no assurance that such expectations will prove to be correct. Investors are cautioned that any forward-looking statements made by the company, or contained in this advertorial are not guarantees of future performance, and that the issuer’s actual results may differ materially from those set forth in the forward-looking statements. We undertake no obligation to update any statements made herein except as required by law. Differences in results can be caused by various factors including, but not limited to, the company’s ability to be able to successfully complete planned funding agreements, to successfully market its products in competitive industries or to effectively implement its business plan or strategies. To reiterate, information presented in this advertorial contains “forward-looking statements.” Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions, or future events or performance are not statements of historical fact and may be “forward-looking statements.” Forward-looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. More information on the company may be found at http://www.sec.gov where readers can review all public filings submitted by the company. TheSeedInvestor.com is not a certified financial analyst or licensed in the securities industry in any manner. The information in this advertorial is subjective opinion and may not be complete, accurate or current and was paid for, so this could create a conflict of interest.