NUGL Inc. (OTC:NUGL) has entered into a definitive acquisition agreement to acquire the outstanding shares and economic interests of Saint Ann, Jamaica - based Kaya LLC.
What Happened?
The Los Angeles company agreed to purchase 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.
The transaction is proposed to be completed by way of a share exchange.
Approximately 816.5 million NUGL shares will be issued to Kaya shareholders in the aggregate.
Why It Matters?
The transaction provides access to capital markets will enable Kaya to accelerate growth and enhance its unique Wellness Ecosystem offering into international markets.
The combined company is expected to have approximately 868.5 million shares issued and outstanding following closing of the transaction.
Kaya is one of Jamaica’s leading, vertically integrated medical cannabis companies. Kaya's diverse operations include a licensed cultivation facility, processing facility, 3 retail herb houses, and one ganja franchise in Punta Del Este, Uruguay.
Moreover, Kaya was the first medicinal Ganja Herb House in the Caribbean.
“The completion of the merger between NUGL and Kaya will create amazing opportunities in the global cannabis sector,” CJ Melone, CEO of NUGL, said. “It will provide us with operating cash flow and additional financial resources so we can continue to offer long term strategic value to our shareholders. I could not be more excited with the expansion opportunities which have already been identified.”
What’s Next?
Completion of the transaction is anticipated to occur on or before March 30, 2022.
Immediately following the transaction, NUGL is expected to change its name to Kaya Group Inc.
Once transaction is closed NUGL will hold 49% of the voting equity of the Kaya Group, and hold 100% of the economic interests in the Kaya Group pursuant to a shareholders agreement.
Capital Raise
Prior to the transaction NUGL filed a Regulation A Offering circular that has been qualified by the US Securities and Exchange Commission seeking to raise a maximum of $20 million.
The capital raise will fund the joint growth strategy into the respective countries of operation for Kaya Group and NUGL Inc.
Photo: Courtesy of Ryoji Iwata on Unsplash
