GABY To Acquire 2Rise Naturals, A Top-Quality Organic CBD Brand

GABY Inc., a cannabis and hemp-derived CBD company, has announced entry into an agreement that sees it acquire all the securities of 2Rise Naturals LLC. The transaction that involves all shares of the latter company is valued at $1 million. The proposed acquisition fits perfectly with GABY’s selection of CBD products, the Sonoma Specific CBD skincare line, and LuLu’s Chocolate. 2Rise Naturals has made a name for itself with its use of organic ingredients and transparent processes.

2Rise boasts a high-quality selection of CBD products, including full-spectrum tincture with turmeric or vanilla, THC-free CBD tincture, and high potency full-spectrum capsules. The products are distributed in 100 stores all over the country, including state of the art California health food chain Erewhon. These numbers are expected to rise via GABY’s existing mainstream distribution. 2Rise makes half of its sales via online sales from their websites, most of which are by repeat customers.

Margot Micallef, founder, and CEO of GABY, praised the reputation of 2Rise and the loyalty they have inspired in their customers. She termed it as a perfect fit for their policy and that they would avail the products to a broader customer base. Margot also commended Kendra Mark, founder of 2Rise, for delivering on the promise of fully organic plant-derived products. She also reiterated her anticipation of carrying on with the same quality as the products reached more customers.

Kendra mentioned that 2Rise has managed to double sales every year for three consecutive years with no incremental capital growth. She explained that the decision to join GABY was a move to bring their products to a broader customer base in the health and wellness space.

Terms Of The Transaction

GABY’s proposal included acquiring all issued and outstanding securities of 2Rise. Holders of 2Rise securities would get common shares of GABY based on the price of the shares centered on the 5-day volume-weighted average trading price before and including the day that the transaction was announced at an enterprise value of $1 million with respect to 2Rise.

The transaction included a condition that GABY would provide 500,000 warrants, which for two years would grant the holder the right to purchase the same number of GABY common shares at $0.45 each. The purchase is expected to close on or about 30th October 2019.

About GABY

After Margot Micallef’s sister, Gabriella, was diagnosed with cancer, the two sisters co-founded GABY as a plan to prolong Gaby’s life. Today, the company produces a range of products addressing many health and wellness issues. Even though Gabriella passed on, she had a longer life than the doctors had anticipated. Her legacy lives on in GABY’s mission to help people live uncompromising lives.