YGYI - YGYI Completes Acquisition of Assets of Khrysos Global a Provider of End-to-End Processing Solutions for Hemp
SAN DIEGO, Feb. 19, 2019 /PRNewswire/ -- 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 Khrysos 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 shareholders," 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.
About Youngevity International, Inc.
YGYI, Inc. (NASDAQ:YGYI), is a leading omni-direct lifestyle company offering a hybrid of the direct selling business model, that also offers e-commerce and the power of social selling. Assembling a virtual Main Street of products and services under one corporate entity YGYI offers products from the eight top-selling retail categories: health/nutrition, home/family, food/beverage (including coffee), spa/beauty, fashion, essential oils, photo, as well as innovative services. The Company was formed in the course of the summer 2011 merger of Youngevity Essential Life Sciences with Javalution® Coffee Company (now part of the company's food and beverage division). The resulting company became Youngevity International, Inc. in July 2013. For investor information, please visit YGYI.com. Be sure to like us on Facebook and follow us on Twitter.
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Safe Harbor Statement
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions, and includes statements regarding establishing Khrysos Industries, Inc as a global player in the field-to-finish hemp-CBD oil, isolate, and distillate market and Khrysos' capabilities and plans for expansion being expected to create additional value for Khrysos' principals and all shareholders. These forward-looking statements are based on management's expectations and assumptions as of the date of this press release and are subject to a number of risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include, among others, our ability to establish Khrysos Industries, Inc as a global player in the field-to-finish hemp-CBD oil, isolate, and distillate market, the contribution of Khrysos' capabilities and plans for expansion to YGYI, our ability to continue our international growth, our ability to continue our coffee segment growth, our ability to leverage our platform and global infrastructure to drive organic growth, our ability to improve our profitability, expand our liquidity, and strengthen our balance sheet, our ability to continue to maintain compliance with the NASDAQ requirements, the acceptance of the omni-direct approach by our customers, our ability to expand our distribution, our ability to add additional products (whether developed internally or through acquisitions), our ability to continue our financial performance and the other factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2017 and our subsequent filings with the SEC, including subsequent periodic reports on Forms 10-Q and 8-K. The information in this release is provided only as of the date of this release, and we undertake no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.
Contacts:
Youngevity International, Inc.
Dave Briskie
President and Chief Financial Officer
1 800 982 3189 X6500
Investor Relations
YGYI investor relations
800.504.8650
investors@ygyi.com
Media Contact
Dwain Schenck
Schenck Strategies
203-223-5230
dwain@schenckstrategies.com
SOURCE Youngevity International, Inc.