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Laguna Blends (CSE: LAG) closed a minority acquisition with Carlsbad Naturals

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The company has secured a 19% equity stake in Carlsbad Naturals for US$796,000, with $250,000 paid in cash and $546,000 paid in Laguna shares, and is in discussions to acquire an additional equity interest, with plans to obtain majority control.

Additional Information:

Company: Isodiol International
Website: http://www.lagunablends.com
Stock Symbol: CSE:ISOL
Date Published: Feb 14, 2017
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for Investmentpitch Media

Laguna Blends Inc. a market leader in the distribution of hemp and cannabidiol products, has closed a minority acquisition of Carlsbad Naturals.

The company has secured a 19% equity stake in Carlsbad Naturals for US$796,000, with $250,000 paid in cash and $546,000 paid in Laguna shares, and is in discussions to acquire an additional equity interest, with plans to obtain majority control.

Carlsbad Naturals (www.cbdnaturals.com), a market leader in the distribution and sales of CBD water, with an unique and proprietary process of infusing CBD’s through nanotechnology, reported revenues of $521,000 for the four months ended December 31, 2016.

The two companies plan to pursue mutually beneficial business opportunities in the Cannabidiol bottled water industry and CBD ingestible products industry, while generating CBD water sales through its Club 8 online marketplace and its B to B distribution channels in the U.S. and Canada.

Ray Grimm, President & CEO of Laguna Blends, stated: “Laguna has worked diligently to close the equity transaction and is very bullish on the future revenue potential of Carlsbad Naturals. As previously announced Laguna currently sub leases office and warehouse space to Carlsbad and our co-working relationship already has resulted in mutually beneficial opportunities."

Troy Nihart, COO to Carlsbad Naturals, added: "Carlsbad and Laguna have a synergistic relationship, combining management and personnel. We are excited to have Laguna as a strategic partner and now as a shareholder in Carlsbad. I believe that this is the beginning of a very long and prosperous relationship."

The company recently closed an oversubscribed private placement for gross proceeds of $1,177,000 through the issuance of 7,849,000 units priced at $0.15.

Each unit contained a full warrant, exercisable at $0.25 for 12 months, subject to an acceleration clause.

It is the company’s intent to provide the highest quality hemp product experience for the end user, utilizing a proprietary nanotechnology in many of its consumable and topical skin care products.

Current products include CannaCeuticals CBD7, a line of anti-aging skincare products incorporating CBD, a superior antioxidant and a potential anti-inflammatory agent, both of which are significant in anti-aging.

The company recently signed a distribution agreement with ISO International, LLC to promote and distribute two new nano CBD Shots in the United States, NanoZzz for sleep, and Amp’d Up for energy, which are now available for purchase on Laguna’s website.

These additional products complement Laguna’s “Caffe”, an instant hot coffee beverage infused with both whey and hemp protein, and “Pro369”, a water soluble, single serving, hemp protein drink, which is available in 4 flavours.

The company continues to seek joint ventures and acquisitions to expand its portfolio and will aggressively begin international expansion into Asia and Europe in 2017

The shares are trading at $0.22, well below the $0.80 target price given by Vancouver-based Fundamental Research.

For more information, please visit the company’s websites www.lagunablends.com and https//cbdskincream.com or email ir@lagunablends.com.

Investor relations is handled by Howe and Bay Financial, which can be reached at 604-449-5302 or email info@HoweandBayFinancial.com.

I’m Samantha Deutscher for Investmentpitch Media