- The new acquisition gives Walker Lane Exploration a 55% stake in the CBD cosmetics company.
- Prior to investing in the cannabis industry, Walker Lane spent the last year and a half in the gas and oil industry.
Cannabis companies are constantly examining ways to further their profit and maintain the innovation that they’ve created reputations for. Walker Lane Exploration, for example, is putting his investment in an emerging CBD cosmetics company called Cosmetics by Design, as he’s just signed a preliminary agreement for a majority stake in the brand. Walker Lane will have a 55% non-dilutive position, thanks to an Asset Purchase Agreement, says PR Newswire.
With the new agreement, Walker Lane is provided with 10 CBD cosmetic formulations, which will be distributed to key cosmetics distributors with strategic partnerships. The agreement also gives WKLN the option to purchase 25 more of these formulations over the next two years.
Of the current outstanding CBDI shares, Walker Lane will acquire 55% with this agreement, maintaining the administrative control. Though financing is not included in the terms of this agreement, a private placement worth a quarter of a million dollars has been approved by the Board.
The positions of executive power will not be changed with this agreement, for the most part. At Walker Lane, Phillip Allen will continue to the CEO and Chairman, while CFO Tony Panasuk will maintain his position as well. However, Panasuk will take on the role of CEO and CFO with CBDI.
“Our board of directors has taken the approach to diversify WKLN for our shareholders' benefit. We believe the CBD market for cosmetics applications may be very lucrative and believe Cosmetics by Design ten CBD cosmetic formulations will be well-received by the market.”
Walker Lane Exploration was created in 2007 in Nevada. Their most recent endeavors have been in oil and gas development, but the Board of Directors chose to move into the cannabis/CBD/hemp industry for a more lucrative opportunity.