CBD Global Sciences Inc., dba Global Sciences Inc. (OTC: CBDNF) (CSE: CBDN) (Frankfurt: GS3.F) (Munich: GS3.MU) (the “Corporation“), is pleased to announce that today it has entered into a definitive asset purchase agreement earlier today with New Age Beverage Corporation and NABC Properties, LLC (collectively, NABC) to acquire the Direct Store Distribution (“DSD”) operation.
Legacy Distribution Group, “Legacy Distribution” (Denver, CO) has executed a purchase agreement to acquire the DSD operations from New Age Beverage Corporation, a Colorado corporation, and a wholly owned subsidiary of New Age, Inc. (“New Age”). The transaction is expected to be completed in the fourth quarter of 2022, and closing will be subject to a 21-day diligence period and court approval in New Age’s pending bankruptcy case. Legacy Distribution will be financing the acquisition with an operating line of credit to be established for this purchase. The New Age DSD operation has been serving the Colorado community for over twenty years, providing best-in-class service to over 5,000 outlets, and has been responsible for launching and growing some of the biggest brands in the industry. From humble beginnings to becoming what is believed by New Age, Inc. as “one of the largest independent distributors in the country”, the DSD now employs hundreds of employees and is proud to keep this great “Legacy” alive.
Brad Wyatt, CEO of Global Sciences shared, “This is a positive achievement for both Legacy Distribution Group and the Operations Team at the DSD. Our companies have been aligned in the Colorado market with the desire to serve the vendors and stores with best-in-class service. The DSD has done an incredible job at growing brands in its market, and I believe this acquisition will enable them to continue its pursuit of excellence. I have complete confidence in the DSD leadership team, and it is my intent to assist them in achieving their goals for continued growth with a focus on profitability in the years to come. I must also share my appreciation for the key vendor accounts. Efforts to keep the faith in the team at the DSD are invaluable and we anticipate this transition will prove to be beneficial to all involved.”