Cannabis-focused, technology-based multimedia platform NUGL Inc. (OTC:NUGL) has completed the previously announced acquisition of Kaya, Inc. in an all-stock transaction.
What Happened?
Kaya shareholders received restricted shares of NUGL, Inc., which were issued pursuant to an exemption from registration provided by Section 4 of the Securities Act of 1933 as “Restricted Securities.”
The company has appointed Bali Vaswani, chairman and CEO of Kaya, as its CEO.
CJ Melone, CEO of NUGL Inc., was appointed chief operating officer of the combined companies, with a responsibility to build out the Kaya brand through established partnerships in key markets.
NUGL, Inc. is expected to change its name to “Kaya Group Inc.”
Deal Details
In March NUGL agreed to acquire the outstanding shares and economic interests of Saint Ann, Jamaica based Kaya, which includes Jamaica Ganja Corporation, Island Kaya Group Limited, Kaya Extracts Ltd., The Herb Company Limited, Island Kaya Tours Ltd., Island Kaya Spa Ltd., and Irish Rover Limited.
Under the deal, approximately 816.48 million NUGL shares are issued to Kaya shareholders in the aggregate.
Why It Matters?
The combined companies will showcase strong leadership teams, a portfolio of powerful brands and operations delivering quality at scale.
In addition, the newly combined entity will utilize multiple markets, retail locations, technologies and distribution facilities, paired with solid backing and options to operate in numerous countries.
Moreover, access to capital markets will enable Kaya to accelerate growth and enhance its unique Wellness Ecosystem offering into international markets.
NUGL now holds 49% of the voting equity of the Kaya Group, as well as 100% of the economic interests in the Kaya Group pursuant to a shareholders agreement.
What’s Next?
“Near-term, Kaya's markets will be the U. S. and the Caricom countries,” Bali Vaswani, chairman and CEO of Kaya, said. “As we launch the Kaya brand in and expand into new markets, we expect to benefit tremendously from NUGL's print and digital core media assets. Each of our locations can house over 1,000 patrons, which is an ideal scenario for hosting live content on NUGL's platform."
Photo: Courtesy of Ryoji Iwata on Unsplash
