News feeds are absolutely inundated with announcements coming from the cannabis industry, as activity remains at fever pitch ahead of adult-use legalization in Canada in three weeks and more statewide votes on legalization in the U.S. in November.
Business incubator Pyramidion Technology Group (OTCPK:PYTG) was part of the action, saying this morning that is has inked a deal to acquire NxGen Brands, a company specializing in cannabinoid (CBD) extracts and related products. Officially, NxGen does business under the moniker "Leafywell."
Leafywell produces an array of CBD products, including oils, tinctures, topical lotions, topical creams and edible candies. Cannabinoids are constituents of cannabis and hemp plants long heralded for their medicinal benefits to reduce inflammation, control seizures and much more.
CBD does not have the psychotropic effect of THC (tetrahydrocannabinol), another famous cannabinoid found in cannabis.
Per the definitive agreement, Pyramidion is buying all of NxGen's assets, including the Leafywell website and all intellectual property, which consists only of names and logos.
No information on Leafywell or NxGen financials were provided. Regulatory filings show that Pyramidion is paying $80,000 in cash and 500,000 shares of Class B convertible stock for 100% of NxGen.
The acquisition follows Pyramidion in August announcing its intentions to target the CBD market. The Weston, Florida-based developmental-stage company had not released news before that since last October, when it said it acquired monitoring company MyIAD, a firm owned by PYTG VP and Director Angel Burgos, although its website makes no mention of the asset currently.
Investors seem jazzed up about Pyramidion joining the pot revolution, as measured by shares appreciating from around 20 cents in July to as high as $1.40 earlier this month. In Thursday trading, shares are up 11.2% at $1.28 with about 90 minutes left in the trading session.
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