Lucosky Brookman LLP Congratulates its Client, Bloomios, Inc., on its $23.5 Million Acquisition of Infusionz
Lucosky Brookman congratulates its client, Bloomios, Inc. (the “Company”) (OTCQB: BLMS), a leading white-label and private-label manufacturer and wholesaler of hemp-derived nutraceutical, cosmetics and pet products, on its acquisition of Infusionz, a wholly-owned subsidiary of Upexi (NASDAQ: UPXI). The acquisition includes Infusionz's portfolio of CBD gummy brands and customers, along with its associated order flow, product formulations, manufacturing operations, equipment and sales team.
The total purchase consideration of approximately $23.5 million consisted of cash consideration of $5.5 million and $18 million of non-cash consideration. The non-cash consideration consisted of the issuance by Bloomios to Upexi of a $4.5 million senior secured convertible debenture, a $5 million secured subordinated promissory note, and shares of a newly created Series D Convertible Preferred Stock with a value of $8.5 million. The purchase transaction also included a simultaneous capital raise of $6.25 million.
The added operations are expected to more than double Bloomios's current production capacity across key production lines while reducing redundant costs across both the acquired and existing operations. The acquisition will contribute in excess of $22 million in annualized gross revenue.
"This acquisition is highly accretive and we believe that it will position Bloomios to uplist to Nasdaq," said Barrett Evans, president and chief strategy officer of Bloomios. "Further, it will allow the Company to acquire additional complementary manufacturing operations and brands."
Lucosky Brookman acted as corporate and securities counsel to the Company. Revere Securities and Spartan Capital Securities acted as placement agents.