VANCOUVER: Icanic Brands Company has signed a binding LOI to acquire De Krown Enterprises LLC, a California based leading cannabis white label manufacturer and brand owner.
De Krown is led by a team of successful and tenured executives from the California cannabis space as well as proven entrepreneurs in various other fields.
The Company has an existing capacity to manufacture over 118,000 pre-rolls per day. De Krown operates from a state-of-the-art 5,000 square foot manufacturing facility, with a type 6 manufacturing license, which allows for manufacturing medical cannabis products using nonvolatile solvents.
Additionally, the facility is outfitted with $650,000 USD in manufacturing equipment. The product portfolio at De Krown has a strong track record of financial performance with average gross margins exceeding 40%.
During the most recent quarter De Krown generated $324,000 USD in revenue. De Krown has broad ranging product experience including: pre-roll manufacturing, cartridge filling, packaging, terpene extraction, topicals/salves, edibles, material procurement and, packaging/supply chain procurement.
“We couldn’t be happier to join the Icanic family,” says De Krown Managing Member, Stu Chang. “It’s great to find a partner that shares our same goals and vision for the emerging Cannabis industry. We are very excited for the journey ahead.”
“We are pleased to be bring the De Krown family under the Icanic umbrella and expanding our product portfolio in California. Their ability to establish themselves as a leading white label manufacturer while creating their own brands is truly remarkable” said, Brandon Kou, CEO of Icanic Brands.
“De Krown currently provides an extensive list of services that will immediately impact Icanic’s ability to accomplish our goal quicker and more efficiently. Their experience in the white label arena should expedite our plans to scale this focus of our business rapidly while doing so in an extremely profitable manner.”
Subject to the terms and conditions of the LOI, Icanic will acquire all rights, title and interests in 100% of De Krown. Icanic Brands will pay a consideration of 1x of Company Revenue based on a 12 month earn out starting 1 year post date of the Closing (months 13-24 post-closing).
The consideration shall be paid in all Purchaser stock. All payments made to debt, pre-payments on equity and/or profit share shall be netted out against the final purchase price consideration and shall be scheduled prior to closing. In addition, 3 main principles from De Krown shall execute Employment Agreements.Icanic Brands also announces it has engaged 808 Investments Ltd. to manage investor relations and corporate development strategies.
As part of its compensation, 808 Investments will be granted options exercisable to purchase up to 100,000 common shares in the capital of the Company at an exercise price of $0.70 per share for a period of five years.
Icanic Brands Company Inc. is a leading cannabis branded products manufacturer based in California & Nevada, the largest and most competitive cannabis markets in the world.
The company’s mission is to make cannabis safe and approachable – that starts with manufacturing high-quality products delivering consistent experiences. www.icaninc.com