Isodiol International (CSE: ISOL) quietly announced yesterday evening that it was terminating the acquisition of Carlsbad Naturals LLC assets. The assets were to be acquired by Iso International, a wholly owned subsidiary of Isodiol International.
Originally announced on February 14, 2019, Isodiol was to acquire all assets associated with Carlsbad Naturals LLC. The assets consisted of both its beverage brands as well as all intellectual property associated with the product portfolio. Brands that were to be acquired included Hemp Rain, Rasa, Bliss Me, Fast CBD, and Simplex, which was part of a US$9 million deal that also saw a $500,000 investment into Isodiol by founder Jared Berry.
In total, the asset purchase was to include “over 15 brands, 40 brand domain names, 50 proprietary ingredient and product formulas, over 100,000 units of inventory, numerous pre-existing distribution relationships, and a comprehensive distribution and marketing strategy.” It was intended that the investment by Berry would be used for guaranteed product placement in over a thousand retail locations.
As per the news release all intellectual property was to be transferred to World Holdings, LLC, while inventories were to be transferred to Iso International, LLC. A search of the United States Patent and Trademark Office reveals that the intellectual property was never transferred to World Holdings.
Yesterday’s news release is in line with this finding stating the agreement was “terminated as a result of Carlsbad New Mexico and Carlsbad Wyoming’s failure to perform their respective obligations under the agreements, including the obligation to transfer to the Company the intellectual properties, brands and other assets that formed the subject matter of the transactions.”
Isodiol International had previously issued 8,861,416 common shares as consideration for the purchase of Carlsbad assets, with an additional 521,259 shares issued as a result of Jared Berry’s investment in the firm. The company has indicated that it is currently in the process of unwinding the transaction, with it being unclear whether or not this includes the investment by Berry.
Isodiol closed yesterdays session at $0.59, up $0.01 or 1.72% on the day.
Information for this analysis was found via Sedar, The CSE, and Isodiol International. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
