Boustead Client Resonate Blends Executes Binding LOI to Acquire a Wellness Cannabis Brand
Strategic acquisition of Florida-based lemon and grass™ expands Resonate’s market presence and national footprint through multi-state distribution and product-level synergies
Calabasas & Irvine, CA - September 14, 2021 - Boustead Securities, LLC (“Boustead”) client Resonate Blends, Inc. (OTCQB:KOAN), a Wellness Lifestyle cannabis holding company (“Resonate” or “the Company”), signed a binding Letter of Intent ("LOI") to acquire all the assets of lemon and grass™ (the "Sellers”). The Seller’s products, focused on the functional side of Cannabis wellness, complement Resonate’s existing product line focused on targeted, precisely-calibrated experiences. lemon and grass™ currently sells in Florida, California and has aggressive licensing plans for multiple states in the U.S. and provinces in Canada including an official launch in the Canadian provinces of Ontario and Alberta in September 2021. The deal is expected to close in the fourth quarter of this year.
The Sellers have a strong presence in the Florida market through a licensing agreement with an established MSO, which distributes the lemon and grass™ brand into over 40 dispensaries in the state. The Sellers previously completed a successful trial in California through 50 dispensaries that demonstrated rapid acceptance of the company’s products and is currently preparing for the brand reintroduction into California.
“Lemon and grass™ reinforces the core notion of Resonate’s vision that value-added brands are the future of Cannabis,” said Geoff Selzer, CEO of Resonate. “We are building a portfolio of brands focused on cannabis as a part of a productive and intentional lifestyle, while benefiting from synergies through expanded product development resources, technology, operational know-how and distribution. This acquisition is the first step of our multi-state expansion plans and supports our strategy of growing both organically through internal development and by acquisition.”
The agreement has built-in incentives for the Sellers and management to work closely with Resonate for a minimum of 18 months to help grow both the Koan and lemon and grass™ brands in California, other legal U.S. markets and in Canada.
Similar to the Koan family of products, lemon and grass™ combines nature, science and technology to formulate and deliver the highest standard of products. The lemon and grass™ product line includes products such as balms, bath salts, tinctures, relief capsules, body oils and transdermal patches. Visit lemonandgrass.com to learn more.
Resonate’s management team sees a significant opportunity for the lemon and grass™ products in California and across the country. The bundling opportunities with the Koan brand makes this acquisition attractive in many ways, including marketing opportunities with the Company’s upcoming Direct-to-Consumer sales platform in California. Following the targeted closing in the fourth quarter of 2021, expansion is expected for both brands in both the U.S. and Canada due to the extensive regulatory groundwork already established by the leadership of lemon and grass™ and their vast network of relationships throughout North America.
About Resonate Blends, Inc. (OTCQB:KOAN)
Resonate Blends is a Calabasas, Calif.-based portfolio of Cannabis Wellness and Lifestyle brands. The company created the Resonate System—a comprehensive system of interconnected experience targets to personalize consumers’ relationship with Cannabis through its products. www.resonateblends.com
About lemon and grass™
lemon and grass™ is a cannabis wellness brand based in Florida that combines nature, science and technology to formulate and deliver the highest standard of product. They strive for consistency to ensure that each and every time you use their products, the results are reliable. The Company uses the finest indoor and sun-grown cannabis from associated farmers and makes sure all supporting raw ingredients and essential oils are natural.
About Boustead Securities, LLC
Boustead Securities, LLC is an investment banking firm that executes and advises on IPOs, mergers and acquisitions, capital raises and restructuring assignments in a wide array of industries, geographies and transactions, for a broad client base. Boustead’s core value proposition is the ability to create opportunity through innovative solutions and tenacious execution. With experienced professionals in the United States, Boustead’s team moves quickly and provides a broad spectrum of sophisticated financial advice and services. Boustead is a majority-owned subsidiary of Boustead & Company Limited, a diversified non-bank financial institution. For more information visit please visit: www.boustead1828.com
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