YIELD GROWTH Licenses For 6 CBD Formulas To Melorgnics For $900,000
In August 25, 2019, Yield Growth Corporation entered into an agreement with Melorganics Hellas. The licensing and distribution agreement covers the rights to 6 CBD infusion formulas for the European market. Yield Growth will pay Melorganics $900,000 in the form of Melorganics Units, for the said rights.
The agreement acknowledges Melorganics’ ability to formulate and manufacture high-quality CBD products. In addition to the formulation of CBD- and cannabinoid-infused products, Yield also expects Melorganics to make these products available in the European Union. Melorganics will develop the brand for the market.
Yield Growth will provide the final approval of the brand name of the CBD products, including their packaging. Yield will buy $900,000 worth of Melorganics Units, giving the company 18 percent ownership of Melorganics. The agreement gives Yield the right to name the individual to head Melorganics’ Board of Directors.
Yield Growth CEO, Penny Green, said,
“We are excited to expand our relationship with Melorganics to bring our CBD products into Europe both as a new brand to be developed and also through the Wright & Well brand. The quality of our products and the strength of our brands allow us to continue to generate revenue and build our assets to bring value to our shareholders.”
Melorganics is also Yield’s exclusive distributor for the company’s Urban Juve brands in Cyprus and Greece. Melorganics need to purchase at least $300,000 worth of Urban Juves in the first year. In the succeeding years, Melorganics has to purchase at least $500,000 of Yield’s products to maintain exclusivity in Cyprus and Greece.
Melorganics Hellas President, Tom Vachliotis, said,
“We are delighted to partner with Yield Growth and now also have access to the Wright & Well Brand. Multiple SKUs is the best way to enter any market. Now when the product lines are also outstanding in quality, you really can't go wrong.”
Yield Growth is processing the registration of the different products under its Urban Juve brand throughout the European Union. The move is to allow these products to be sold in the EU market. To date, there are 2 Urban Juve products approved for sale. There are 9 more that the company expects to complete their registration by fall.
Yield is issuing $0.30-worth special warrants to help finance $500,000. The special warrants can be converted into units at a share to warrant ratio of 1:1. Entities can also buy additional shares at a share price of $0.35 for 2 years.