Attached files
| file | filename |
|---|---|
| EX-99.3 - CURE BASED DEVELOPMENT, LLC MEDIA POWER POINT PRESENTATION - cbdMD, Inc. | levelb_ex993.htm |
| EX-99.2 - CURE BASED DEVELOPMENT, LLC MARKETING POWER POINT PRESENTATION - cbdMD, Inc. | levelb_ex992.htm |
| 8-K - CURRENT REPORT - cbdMD, Inc. | levb_8k.htm |
Exhibit
99.1
Level Brands Closes Acquisition of
Nationally Recognized Health & Wellness Brand
cbdMD
Purchase Price Sets Revenue Targets At $300 Million Within Five
Years
Charlotte,
NC – Level Brands, Inc. (NYSE American: LEVB) (the
“Company”) announced today that it has closed its
acquisition of Cure Based Development, LLC, the owner of the
nationally recognized consumer brand cbdMD in an all-stock
transaction. cbdMD is a consumer
products brand offering a large selection of cbdMD branded CBD
products primarily through its ecommerce website,
www.cbdMD.com, as well as through 700 current third party
retail locations. cbdMD manufactures its premium line of
products at its Charlotte, NC facility using 100%, all-natural CBD
extracted from organic, non-GMO, vegan, and gluten-free industrial
hemp grown in the USA.
In
consideration of the purchase price, Level Brands will issue
15,250,000 shares of its common stock and it may issue up to an
additional 15,250,000 shares during the first 60 months if revenue
milestones aggregating $300 million are achieved. The revenue
milestones are targeted at $20 million in the first 12 months, $40
million in the next twelve months, $80 million in the next 18
months and $160 million in the final 18 months.
“With
the acquisition of cbdMD, I believe Level Brands now becomes one of
the leading CBD consumer companies in America. The cbdMD brand has
shown consistent month-over-month double-digit growth rates and,
with the capital we have available, we believe we can significantly
accelerate the revenue growth and execute on an aggressive
expansion and brand positioning plan which should yield continued
significant growth rates. Now that the Farm Bill has been approved,
and CBD will no longer be listed as a Schedule 1 controlled
substance, we believe the CBD market should drastically expand. CBD
products will now have access to retailers nationwide, as well as
through online channels. In addition, the passage of this
legislation should help CBD gain mainstream consumer acceptance. We
believe cbdMD will significantly gain market share in this growing
industry,” said Martin Sumichrast, Chairman and CEO of Level
Brands.
“I
was first introduced to CBD as a consumer and it really worked for
me. Since launching the company, our goal has been to bring a
unique product to our loyal customers with the goal of enhancing
their overall quality of life and providing education and awareness
to the potential benefits of CBD. In the process, we expect to
build cbdMD into the leading CBD brand. We have built a reputation
as a premier manufacturer of high-quality products at a very
affordable price, giving our customers a great value. Now with the
passage of the Farm Bill, we expect not only that our business will expand
as major retail chains start to carry CBD, but also this mass
retail acceptance will encourage a larger customer base who will
want to try our products. In addition, our access to
athletes and the sporting world should enhance the marketability of
our products,” said Scott Coffman, the Founder and CEO of
cbdMD.
cbdMD’s founder is Scott Coffman, the founder of Blu-Ecig.
Mr. Coffman started Blu and sold it to Lorillard Tobacco for $135
million. Mr. Coffman, who will join Level Brands’ Board and
will continue as CEO of cbdMD, will be a significant shareholder of
Level Brands.
“While our products are currently in over 700 retail outlets
in the U.S.
and we are gearing up to expand our
retail footprint, we
also believe in growing our e-commerce channel. We believe we will
separate ourselves from our competitors through our unique online
marketing campaigns. Since CBD is generally recognized as being
most effective when you take it regularly, our online re-order
programs provide an easy, cost effective way to get our products to
our customers,” said Caryn Dunayer, President of
cbdMD.
Historic
information on cbdMD’s products can be found in the
presentations furnished in a Current Report on Form 8-K as filed by
Level Brands on December 21, 2018 ( SEC link).
About Level Brands
Level
Brands is an innovative brand management and licensing company that
provides bold, unconventional, and socially responsible branding
for leading businesses. Level Brands owns and operates the
nationally recognized consumer cannabidiol (CBD) brand cbdMD, whose
current products include CBD gummies, CBD tinctures, CBD topical,
CBD bath bombs, CBD oils, and CBD pet products. The Company's
primary licensing and corporate brand management businesses target
consumer products in the health and wellness space and other
high-demand verticals, bringing innovative products to market under
the kathyireland® Health & Wellness; Ireland Men One
(I'M1), and Encore Endeavor One (EE1) brands.
Forward-Looking Statements
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 the
expansion of the consumer market for CBD products and our ability
to increase cbdMD’s market share post-closing, 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, 2018 as
filed with the Securities and Exchange Commission (the "SEC") on
December 12, 2018 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 Level Brands,
Inc. 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.
Contact:
Investors:
RedChip
Companies
Craig
Brelsford, 407-644-4256
craig@redchip.com