Sept. 13, 2018 /CNW/ - Gabriella's Kitchen Inc. ("GK" or the "Company") (CSE : GABY), a market-leading cannabis wellness company, is pleased to announce that it has entered into a definitive agreement to acquire The Oil Plant, Inc. ("TOP") and its associated cannabis licenses (the "Transaction"). Also included in the Transaction is TOP's line of health and wellness products which includes a line of topicals, tinctures, and concentrates all marketed under the Aunt Zelda's™ brand. The Transaction, expected to close on October 1st, is structured such that TOP shareholders will receive GK shares as consideration for their holdings on an earn-out basis. Based on TOP's current management forecasts and projections for 2019, TOP is expected to generate over US$10 million in revenue next year. If TOP meets or exceeds this revenue target GK will issue TOP's shareholders US$2.1 million in common shares of GK at the prevailing market price, calculated quarterly on revenue realized in that quarter. If TOP fails to meet these revenue targets consideration is adjusted accordingly. After incorporating the impact of the Transaction, GK is pleased to increase its revenue guidance for 2019 to CN$35 million.
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Gabriella’s Kitchen Secures Foothold in California Cannabis Market with Acquisition of The Oil Plant and Associated Cannabis Licences
