PSYC - PSYC to acquire cannabis content platform Technical420 at $2.25M
- PSYC ( OTCPK:PSYC ) stated Tuesday that it has entered into an acquisition deal under its subsidiary Spotlight Media to purchase cannabis content firm Technical420 and some assets of SB Partners.
- So far, the memorandum of understanding has been signed between the parties that values the acquisition at $2.25M, including cash, preferred stock, and common stock warrants in consideration.
- SB Partners' assets will include MushroomStocks.com and OnTheBids.com, as well as Technical420.com among others. Once the definitive deal goes through, Technical420 and SB Partners founder Michael Berger is said to join PSYC as its chief operating officer.
- Management expects the acquisition to be immediately accretive for PSYC.
- "Going forward we expect, conservatively, at least 70% of T420 revenue to directly impact PSYC’s EBITDA and net cash position. Even when we assumed the worst — zero growth for T420, a stagnant cannabis sector, a stagnant psychedelic space, and an inability to scale the assets — our acquisition of T420 and retention of Mr. Berger as COO makes this deal immediately accretive to PSYC and beneficial to shareholders in the short and long term," said PSYC CFO Craig Schlesinger.
- Closing of definitive agreement by Sept. 30, 2022.
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PSYC to acquire cannabis content platform Technical420 at $2.25M