SANTA ROSA, CA and CALGARY, AB, July 22, 2019 /CNW/ – Following the press release dated May 16, 2019Gabriella’s Kitchen Inc. (“GABY” or the “Company“) (CSE: GABY), is pleased to announce that it has entered into a definitive agreement with Louise (Lulu) Sharpe, the founder and President of Raw Chocolate Alchemy LLC (d.b.a Lulu’s Chocolates) to acquire all of the issued and outstanding securities, of Lulu’s Chocolates (“Lulu’s“), including the settlement of US$75,000 of outstanding debt in exchange for US$1,075,000 in GABY common shares valued at CDN$0.32 per share, which is calculated based on the 5-day volume-weighted average price of GABY common shares on the Canadian Securities Exchange (“CSE“) ending May 16, 2019, (the “Transaction“). The Company anticipates closing the Transaction on or about July 26, 2019.
Lulu’sCBD infused chocolates are sold in approximately 250 mainstream grocery stores and its traditional chocolates are sold in an additional 200 mainstream grocery stores across the United States, including Whole Foods Market in Northern California and Arizona. GABY intends to leverage Lulu’s mainstream distribution channels to accelerate the growth trajectory for GABY‘s newly launched CBD products.
Lulu’s THC infused chocolates are sold in 35 dispensaries in California. GABY‘s distribution assets with access to dispensaries across California provide a strong licensed channel growth platform for Lulu’s infused products.
Margot Micallef, Founder, and CEO of GABY commented, “Chocolate and confections is one of the top-selling categories in both the mainstream grocery channel as well as the regulated California cannabis edibles marketplace. With a strong start in both channels, a synergistic retail footprint, and a senior team with a proven track record of developing and commercializing award-winning products, Lulu’s represents a strong foundation for GABY‘s rapid expansion in this market.” Ms. Micallef continued: “GABY is well-capitalized to execute on an aggressive organic and acquisitive growth strategy. More importantly, GABY will continue to focus on transactions that generate returns on our capital employed which inevitably creates value for shareholders”.
This press release is not an offer of the securities for sale in the United States. The securities may not be offered or sold in the United States absent registration or an available exemption from the registration requirements of the United States Securities Act and applicable U.S. state securities laws. The Company will not make any public offering of securities in the United States. The securities have not been and will not be registered under the United States Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.
ABOUT GABRIELLA’S KITCHEN INC.
GABY is a US-focused, consumer packaged goods company operating a family of brands in the cannabis industry and in the mainstream grocery channel. Through its subsidiaries, GABY indirectly holds manufacturing and a distribution license issued by the Department of Health and the California Bureau of Cannabis Control respectively. With these licenses to operate in the cannabis channel and its existing infrastructure of major retailers and an extensive broker and distribution network in the mainstream channel, GABY is positioned to bring its proprietary, acquired and third-party brands to market in both the licensed and mainstream market.
Margot and her sister Gabriella co-founded GABY after Gabriella received a dire cancer diagnosis which spurred the sisters to prolong Gabriella’s life through a holistic approach to health. Today, GABY offers a diverse range of products that use cannabis, hemp-derived CBD and other powerful ingredients to address a variety of dietary and health concerns. Although Gabriella ultimately passed away from her illness, she lived exponentially longer than doctors predicted. Her memory and passion live on through GABY‘s mission: to empower people to live healthy lives without compromise.