Benzinga | Jul 19, 2021 08:02AM EDT

cbdMD Enters into Letter of Intent To Purchase DirectCBDOnline.com

cbdMD, Inc. (NYSE:YCBD, YCBDpA))), one of the leading, and most highly trusted and recognized CBD companies, announced today that it has entered into a letter of intent to purchase leading CBD online marketplace, DirectCBDOnline.com, from Twenty Two Capital, LLC.

"Owning a CBD online marketplace that sells various CBD brands provides unique transparency to better understand consumer spending habits and trends across the wider CBD and hemp marketplace. In addition, the technology and digital strength that DirectCBDOnline.com owns enhances our overall direct to consumer ecommerce capabilities. We are very excited that the team from DirectCBDOnline.com will be joining cbdMD. John Wiesehan III and Brad Trawick, who are the co-founders of DirectCBDOnline.com will be playing important roles, as we expand further in the global CBD market. John will be appointed in a newly created role of Chief Revenue Officer at closing," said Martin A. Sumichrast, Chairman & co-CEO of cbdMD, Inc.

"cbdMD is well positioned to increase its market share in the rapidly growing CBD industry. By folding in our team from DirectCBDOnline.com, we strengthen the foundation that cbdMD has built," said John Wiesehan III, CEO of DirectCBDOnline.com.

Subject to customary conditions to closing, cbdMD, Inc. expects to enter into an asset purchase agreement and complete the acquisition no later than July 31, 2021. Investors are also cautioned not to place undue reliance on the completion of the asset purchase agreement as certain conditions precedent to execution of the agreement and closing are not within the control of cbdMD, Inc. and, accordingly, the transaction may not be completed.