Youngevity Khrysos Global Acquires Khrysos’ CBD Extraction Technology

Khrysos Global

Omni-direct lifestyle firm Youngevity International (NASDAQ: YGYI) has agreed to acquire all the assets of Tampa, Fla.-based Khrysos Global, which makes hemp-based CBD extraction equipment.

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Youngevity has created a new company Khrysos Industries, which will be the company’s wholly-owned subsidiary. The acquired assets include INX Labs and testing facilities of Khrysos.

“The purchase of the assets of Khrysos Global should be the catalyst that launches YGYI into the hemp-CBD space. We expect it will serve as a cornerstone of our comprehensive strategy as it relates to the production, cultivation, and extraction of hemp, CBD oil, as well as other CBs (cannabinoids),” YGYI President and CFO Dave Briskie said in prepared remarks.

YGYI is betting big on the rapidly-growing hemp-CBD market. Last month, the company entered into an exclusive cross-marketing agreement with Icelandic Glacial bottled water with the expressed intent of developing a ready-to-drink CBD product with the company.

Purchase Agreement

Under the the purchase agreement, all assets of Khrysos Global will be acquired by YGYI, including all real property, joint venture agreements, contracts rights, intellectual property, trademarks, copyrights, and service marks for $16 million, including 1,794,972 shares of common stock and $500,000 shall be paid at closing.

In addition, YGYI agreed to issue to the principals of Khrysos, subject to the approval of stockholders and NASDAQ, warrants to purchase up to 3,000,000 common stock shares at an exercise price of $10 per share upon the achievement of certain revenue and net income milestones.

“Our agreement to acquire Khrysos is extremely exciting on a number of levels,” YGYI CEO and Chairman Steve Wallach said in a statement.

“Beyond the fact that we believe Khrysos’ hemp-CBD extraction technology is far more efficient than most anything else on the market, we’re acquiring a turn-key business model here. Their systems are applicable to the entire industry and are immediately implementable across our own line of HempFX products, as well as in offtake agreements we have through our existing business relationships. We see this as providing not only immense value to our company, but also to our investors since we’ll be selling not just the extraction systems, but also generating income servicing and operating these systems via a rental model,” Wallach added.

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