Youngevity acquiring all assets of Khrysos Global for $16M
Youngevity has entered into a binding agreement to purchase all the assets of Khrysos Global - a Tampa, Florida based manufacturer of hemp-based CBD extraction equipment. This acquisition is intended to establish YGYI's newly formed wholly-owned subsidiary, Khrysos Industries, in the field-to-finish hemp-CBD oil, isolate, and distillate market, and also would give YGYI ownership of INX Labs and its testing facilities, allowing the company unprecedented capabilities in regards to formulation, quality control, and testing standards with its CBD products. All assets of Khrysos Global are to be acquired by YGYI, including all real property, joint venture agreements, contracts rights, intellectual property, trademarks, copyrights, and service marks in exchange for a total consideration of $16M, of which 1,794,972 shares of common stock and $500K will be paid at closing. In addition, YGYI agreed to issue to the principals of Khrysos contingent consideration warrants to purchase up to 3M shares of Common Stock at an exercise price of $10 per share upon the achievement of certain revenue and net income milestones. The closing of the transactions is scheduled for February 15.