Laguna Blends has announced it has signed a definitive agreement to acquire 100% of ISO International, LLC, doing business as Isodiol, with unaudited annualized sales of over $12,000,000 USD and adjusted EBITDA of over $1,588,000 USD.

Confirmation of Isodiol’s annualized sales further validate Hemp Business Journal’s market estimate that the Hemp CBD retail sales were $130mm in 2016, with the top companies averaging $10-$15 million in sales. CV Sciences, a Laguna Blends competitor, reported just above $11mm for end of year 2016 revenue. Sales across the category represent continued momentum and performance for CBD products in line with Hemp Business Journal’s projected 53% AGR for the category.

Regarding the acquisition, Marcos Agramont, COO of Laguna stated, “The acquisition of Isodiol marks a major milestone for Laguna and gives the Company a sizable presence in the rapidly growing global cannabis market. With over $16,000,000.00 CAD in 2016 unaudited annualized revenue and significant sales growth projected for 2017, Laguna has added significant shareholder value through this strategic acquisition. The acquisition of Isodiol, combined Laguna’s recently signed distribution/sales agreement for its Cannaceuticals skin care line in Asia and Europe, we are extremely optimistic for the Company’s 2017 growth outlook.”

Jared Berry, CEO of ISO International stated, “As we move forward through the acquisition process and create one combined entity, Isodiol will continue to focus on high growth strategies and additional acquisitions. It is important to continue to diversify our revenue channels with new initiatives and product offerings which will add tremendous value to our current and future shareholders.”

The transaction will be fully executed within 30 days of the definitive agreement dated April 27th, 2017. Additional details around the formation of management and consolidated operations will be provided in the coming weeks.

As a part of the transaction, Laguna will issue 37,500,000 shares at a deemed price of $0.12 per share and pay $6,000,000 USD in staged payments over the following 12 months. A payment of $500,000 will be due within 30 days of signing the definitive agreement with the next payment due on the 6 month anniversary of signing. The shares will be subject to a 4 month hold and subsequently released on a schedule of 1/12 per month over 12 months.