SAN DIEGO — Youngevity International, Inc. (NASDAQ: YGYI), a leading omni-direct lifestyle company, announced today that it completed the closing of the acquisition of all the assets of Khrysos Global–a Tampa, Florida based manufacturer of hemp-based CBD extraction equipment. This acquisition is expected to establish YGYI’s newly formed wholly-owned subsidiary, Khrysos Industries, Inc, as a global player in the field-to-finish hemp-CBD oil, isolate, and distillate market, and also gives YGYI ownership of INX Laboratories and its testing facilities, allowing the company unprecedented capabilities in regards to formulation, quality control, and testing standards with its CBD products.
“We set out a plan to create a vertical opportunity in the hemp space. This is a significant step as it relates to the production, cultivation, and extraction of hemp, CBD oil, as well as other CBs (cannabinoids).” We proudly welcome Dwayne Dundore, as the President of newly formed Khyrsos Industries along with his entire and very capable team at Khrysos and INX Labs,”
Dave Briskie, President and CFO of YGYI said about the acquisition
“I am really excited to be a YGYI shareholder and part of the Youngevity Family. I look forward to making a meaningful contribution to both the top and bottom line of the company and feel strongly that our capabilities and plans for expansion should create additional value for myself and all shareholder,”
said Dwayne Dundore, President of Khrysos.
Pursuant to the purchase agreement all assets of Khrysos Global and all shares of capital stock of INX Laboratories and INX Holdings (a real estate holding company) became the property of YGYI, including all real property, joint venture agreements, contracts rights, intellectual property, trademarks, copyrights, and service marks used in Khrysos’ business in exchange for a total consideration of $16,000,000, of which 1,794,972 shares of common stock (having a deemed value of $14,000,000) and $500,000 was paid at closing. In addition, YGYI agreed to issue to the principals of Khrysos, subject to the approval of stockholders and The Nasdaq Stock Market, contingent consideration warrants to purchase up to 3,000,000 shares of Common Stock at an exercise price of $10 per share upon the achievement of certain revenue and net income milestones.
Disclaimer: Kevin Surbaugh is an independent sales representative of Youngevity (YGYI) and is a shareholder in the publicly traded company.
He also has positions in Coca-Cola (KO), Berkshire-Hathaway (BRK.B); (BRK.A), and WalMart (WMT), but has no positions in any other stocks mentioned, and no plans to initiate any positions within the next 96 hours.
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