Nevada marijuana company 1933 Industries announced an all-stock deal to acquire the entirety of California-based CBD drink producer Day One Beverages.
Under terms of the deal, 1933 will issue 55 million shares to the sellers, including 45.2 million shares at closing and 9.8 million more in quarterly installments, according to a Tuesday morning news release.
Those shares were worth CA$0.045 apiece on the Canadian Securities Exchange at market open Tuesday.
The sellers could also receive up to 27.5 million share purchase warrants, exercisable at $0.0545 per share for 30 months after the close, if revenue milestones are met.
1933 will also loan up to $300,000 to Day One as part of the deal, which is expected to close at the end of this month.
“The intended acquisition of Day One strategically positions the company at the forefront of one of the fastest growing categories in the beverage space,” 1933 CEO Paul Rosen said in a statement.
“With strong distribution channels already in place and an innovative approach to marketing, we anticipate Day One to be a key revenue growth driver for the company in the future.”
1933’s Nevada holdings include cannabis cultivator and manufacturer Alternative Medicine Association and CBD product manufacturer Infused.