CBD of Denver Inc. Announces Strong April and May Sales
CBD of Denver (OTC Pink: CBDD) reported strong revenues for April and May 2024, with April sales reaching approximately $490,000 USD, primarily driven by Luxora. The company decided to unwind its acquisition of Libra 9 GmbH due to unmet revenue goals. Axel Reinke resigned as CEO and was replaced by Jan Schwager, CEO of Luxora. Luxora has engaged in discussions with strategic partners and signed an LOI. They also launched a new product, CheckMyWeed, for analyzing cannabis content. Germany is updating its cannabis regulations, expected to take effect on July 1, 2024. CBD of Denver plans to increase its authorized shares to eight billion to support growth strategies and will participate in an interview on the "Markets Hunter" podcast in June 2024.
- April 2024 revenue reached approximately $490,000 USD, primarily from Luxora.
- Luxora reported continued strong revenue of $359,500 USD in May 2024.
- Luxora has signed a Letter of Intent (LOI) with a potential strategic partner.
- Launch of CheckMyWeed, a precise cannabis content analysis device, expected to enhance market presence.
- Germany's new cannabis law expected to take effect on July 1, 2024, could benefit the company's operations.
- No toxic debt in the company's capital structure reported.
- Unmet revenue goals led to CBD of Denver unwinding its acquisition of Libra 9 GmbH.
- Axel Reinke resigned as CEO and board member effective May 9, 2024.
- Increase in authorized common shares to eight billion may lead to shareholder dilution.
Denver, Colorado--(Newsfile Corp. - June 6, 2024) - CBD of Denver, Inc. (OTC Pink: CBDD) today announced strong April revenue of approximately
The company has decided to unwind the acquisition of Libra 9 GmbH. In early 2023, CBD of Denver Inc. had moved forward with the acquisition of Libra 9 GmbH based on the reported trailing 12-month revenue of
However, after months of discussion on the development of Libra 9's products and extensive discussions over recent months, the board of directors has concluded that the revenue goals initially presented to CBD of Denver Inc. at the time of the transaction have not been met. As a result, the board has determined that it is in the best interest of the shareholders and CBD of Denver Inc. to unwind the acquisition agreement with Libra 9 GmbH. The company continues to work with Mr. Reinke on the unwinding of the transaction.
"Despite the initial promise of this acquisition, the evolving market conditions and the financial performance of Libra 9 have led us to reassess this strategic move," said Robert Roever member of the board of CBD of Denver Inc. "We remain committed to our growth strategy but believe that reallocating resources to Luxora Inc. and focusing on more profitable ventures is the prudent path forward for our shareholders and the company."
The decision to unwind this transaction was made after numerous meetings and thorough discussions regarding the future strategic direction of the company. CBD of Denver Inc. is dedicated to maintaining transparency with its shareholders and ensuring that all corporate actions align with its core mission of delivering value and innovation to its shareholders and the company.
Axel Reinke has also resigned as CEO and board member, effective May 9, 2024. Concurrent with the resignation of Mr. Reinke, Jan Schwager, CEO of Luxora, has been appointed as CEO of the Company.
CBD of Denver, through its Luxora division, has experienced significant growth over the past several quarters. Luxora has engaged in numerous discussions with potential strategic partners recently, focusing on legalization in Germany and new opportunities that have arisen. One such prospect has already progressed to signing a Letter of Intent (LOI). The company continues to review new opportunities that it believes will be accretive to the organization.
Luxora Holding AG has entered a term sheet with CheckMyWeed enabling the launch of a new product called CheckMyWeed powered by NIRLAB. CheckMyWeed is a groundbreaking solution that allows users to analyze the cannabinoid content of cannabis flowers with unprecedented precision at the push of a button within seconds. The device, approximately the size of a flashlight, enables contactless and non-destructive analysis of plant material. Results are displayed on Apple or Android smartphones via a separate app, which operates on a monthly subscription basis. The technology can analyze vital information such as THC, CBD, and other secondary cannabinoids during the cultivation process as well as post-harvest. The company believes this product will be a valuable tool for the rollout of Cannabis Clubs and for the broader context of legalization in Germany.
Update on German Law: Currently, a new law is being implemented to amend the existing cannabis regulations, further clarifying the framework under which Cannabis Clubs can operate and apply for their permits. The draft law introduces additional guidelines, allowing individual federal states to decide whether multiple Cannabis Clubs can operate within the same facility. Additionally, Cannabis Clubs are not allowed to assign the same paid employee or the same non-member to more than one type of service.
The law has already gone through the first reading in parliament and the hearing in the health committee. It will now be forwarded to the second and third readings in parliament, which will include the final vote before being passed on to the Bundesrat as the final step. The law is expected to go into effect on July 1, 2024.
The company will be increasing its number of authorized common shares to eight billion shares to support its growth strategy and issue shares to investors. Please review our financials and disclosures, as the company does not have any toxic debt in its capital structure.
Furthermore, the company will participate in an interview on the "Markets Hunter" podcast, scheduled for broadcast in June. This interview will discuss the current changes and future direction of the company. It can be accessed through the Markets Hunter Channel on YouTube at https://www.youtube.com/@Marketshunter.
About CBD of Denver, Inc.
CBD of Denver, Inc. is focused on acquiring profitable assets at attractive valuations to create value for shareholders. The company's team is dedicated to sourcing high-margin, innovative products that align with its values.
About LUXORA Inc.
LUXORA Inc. is a trailblazing entity in the European cannabis industry, with offices spanning the USA and Europe. Our core expertise revolves around unlocking the potential of the legalized cannabis market, offering infrastructure solutions and consulting tailored to the dynamic needs of this rapidly expanding sector. With a profound understanding of the opportunities and challenges brought forth by legalization, our experienced team is dedicated to pioneering the future of the legal cannabis market in Europe. Our offerings range from consulting and market research to product development and distribution solutions, aimed at simplifying the path to legalization for our esteemed clients.
For inquiries, please contact Investor Relations: investors@luxora-holding.com
For more information, please visit: www.luxora-holding.com
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/211904
FAQ
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