Before the opening bell, Laguna Blends, Inc. (OTC: LAGBF)
announced the execution of a non-binding letter of intent with Cannaceuticals
of California, USA (Canna) through which it plans to enter into a definitive
manufacturing and exclusive license agreement for Canna’s cannabidiol (CBD)
skin care line. The two parties have agreed to an exclusivity period running
through July 29, during which additional negotiations and signing of the
manufacturing and license agreement are expected to take place.
“Canna has spent a tremendous amount of time and financial
resources to create what we believe is the highest quality CBD skin care line
available on the market today,” Stuart Gray, founder and chief executive
officer of Laguna Blends, stated in this morning’s news release. “By combining
the known benefits of CBD’s into a skin care product, we anticipate that Laguna
is poised to become a direct sales leader in the skin care industry.”
According to this morning’s news release, the terms of the
letter of intent outline Laguna’s future purchase of the entirety of Canna’s
existing inventory, including roughly 4,500 units of each of the eight existing
Canna products. Laguna is expected to pay $250,000 on a monthly payment
schedule over a six-month period, as well as a license fee of $100,000 in
common shares upon final entry into the binding manufacturing and exclusive
license agreement. In exchange for these payments, Laguna will be granted an
exclusive license to sell Canna products in the United States and Canada for an
initial period of two years, as well as the rights to sell Canna products in
Asia, Europe and Mexico, pending regulatory approval and Laguna’s expansion
into these markets.
Moving forward, Canna will continue to contribute its
research and development expertise in CBD-derived skin care products while
manufacturing additional units of its current products, as necessary to meet
the inventory requirements of Laguna.
For members of Laguna’s affiliate program, the letter of
intent with Canna could open the door for considerable sales growth in the
coming months. According to a report by Market Research, the global skin care
industry is expected to surpass $120 billion in 2016, with the U.S. market
alone climbing to $10.7 billion by 2018. Pending due diligence and necessary
approvals, Laguna expects to offer Canna products to its affiliate base as soon
as August of this year, with expansion into Canada expected to occur before the
end of 2016.
“By offering the Cannaceuticals skin care line of products
to our affiliates, the Company anticipates an increase in product sales and
recruitment of new affiliates,” concluded Gray.
For more information, visit www.lagunablends.com
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