ENDEXX Corp. (OTC:EDXC) announced that its newly acquired subsidiary, HYLA US Holdco Limited, has initiated marketing approvals in eight new markets, namely Germany, Italy, Israel, Egypt, Slovenia, Romania, Iran, and Bahrain.
HYLA US Holdco produces and distributes organic, guarana-based, all-natural, zero-nicotine vape products, and is currently active in the United States, Canada, the Czech Republic, Georgia, Russia, Slovakia, South Africa, Switzerland, the United Arab Emirates, United Kingdom, and Uzbekistan.
"We continue to see increased demand for our non-nicotine, guarana-based vape products, with sales and territories increasing quarter by quarter, all despite a current inability to sell the product online in the US,” HYLA CEO Nick Mehdi said in a statement.
“With more than 1,000 stores carrying the product in the US, and the potential to expand our market penetration to as many as 19 countries by the end of 2022, we are excited to add our product line to the already strong retail presence Endexx maintains," he added.
WATCH: ENDEXX says Hyla acquisition will add new countries to its distribution network, boost revenue
HYLA's unique guarana-based products contain no nicotine, providing an attractive alternative in a market that continues to express high demand for vape products. Introduced in October 2021, HYLA's initial inventory of 140,000 devices was sold out within the first month of availability.
The completion of the acquisition of a controlling interest in HYLA has also strengthened Endexx Corporation’s balance sheet. Endexx entered into settlement, lock-up and leak-out agreements with its historic investors, with each historic investor agreeing to exchange their pre-acquisition promissory note and warrants with a simple promissory note. The new replacement note removed the convertible debt and warrants and replaced them with a simple, non-convertible debt facility with an 18-month term.
"The HYLA acquisition continues to be an important milestone for Endexx as it not only has provided additional revenue - which we expect to experience immediately - and new international distribution for both our CBD Unlimited and Blesswell product lines, but it also significantly clears the overhang from our balance sheet. This consolidation and simplification of our debt structure will enable us to fund our operations more easily, and create future growth, unencumbered by complex and potentially toxic debt," the company said.
Endexx Corporation develops and distributes all-natural, plant-derived topical skincare products. Its products vary from balms, creams, lotions, butters, masks, scrubs, and oils, all with the shared purpose of healthy skin and grooming wellness.
Contact the author at jon.hopkins@proactive.com