1606 Corp. (OTC:CBDW) said it has signed a definitive letter of understanding to purchase 51% of India-based nutraceutical company Sanctum Herbal Corp for $7.2 million in a combination of cash and stock in a deal expected to close this month, pending an inspection of Sanctum’s facilities.
1606 Corp. (OTC:CBDW)senior executive Austen Lambrecht is currently conducting an on-site factory survey, inspecting the inventory outlined in the deal and meeting management, the company said.
The acquisition is a crucial step for 1606 Corp in terms of growth.
“We're going to own 51% of Sanctum allowing us to add revenue which gets us another step closer to fulfilling the listing requirements of a national exchange,” CEO Greg Lambrecht said in a statement.
“We will receive a significant amount of inventory allowing us to go to market quickly, and we have access to world-class scientists who can help us develop future products.”
In addition to the 51% stake, 1606 will receive exclusive international distribution rights for all products and technology, along with US$7 million in inventory which the company plans to begin distributing in the US, Mexico, and India in the second quarter.
"To help as many people as possible, as quickly as possible, we are focused on nutraceuticals rather than formulaic drugs that require extensive clinicals for product approval,” Sanctum CEO Pat Krishnan said.
“CoroQuil-Zn is a nutraceutical classified as GRAS (Generally Recognized as Safe). The partnership with CBDW will allow us to stay on mission even faster.”
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