Biotech company Branded Legacy, Inc. (OTC.PK: BLEG) announced on Tuesday that it has acquired Florida-based MariJ Pharmaceuticals, Inc., which specializes in the certified organic mobile extraction and production of CBD from industrial hemp.

What Happened

The deal encompasses two separate companies under the MariJ umbrella, each contributing unique strengths and licensing support for market presence to Branded Legacy's growing portfolio, the company said in a press release.

The deal includes two specialized trucks - an International and a Freightliner - engineered to enhance operational flexibility and reach.

The acquisition is a combination of preferred series stock and cash. The shares issued will have a buyback option as well as a lockout/leak agreement. The closing of the acquisition was consummated on Monday, Dec. 4, 2023.

See also: Branded Legacy Shares Trading Higher On Getting 'One Step Closer To Full Vertical Integration'

Why It Matters

The deal significantly expands Branded Legacy's asset base and intellectual property portfolio.

It brings a suite of physical and IP assets including a compounding pharmacy license, a cutting-edge supercritical CO2 extraction unit, an inventory of certified organic refined CBD, a fleet of licensed and permitted vehicles – modified to house a complete extraction facility, a state-of-the-art refinement lab, and food-safe production area.

The acquisition further includes an array of vital operational tools, such as advanced chillers, refrigerators, precision scales, an industrial biomass grinder, and a diverse selection of terpenes, flavorings, and essential lab supplies as well as a patent.

Moreover, the move represents the integration of MariJ's entire operational framework, including its multiple formulations and products with proven track records of profitability, into Branded Legacy, Inc.

It extends to MariJ's digital and intellectual property, customer and operational databases, formulations, CRM, as well as multiple domains and websites. The deal also includes permits, a patent for extraction and processing, trademarks, and organic certifications, further solidifying Branded Legacy, Inc.'s asset profile.

"The complete acquisition of MariJ is a strategic move that aligns perfectly with our vision for growth and market leadership," said Dave Oswald, CEO of Branded Legacy. "This acquisition not only enhances our product range and production capabilities but also brings in a wealth of intellectual property, history, data, and operational assets that will be instrumental in our future endeavors."

What's Next

As Branded Legacy integrates MariJ's assets and capabilities, the company is poised to deliver enhanced products and services to its customers, reinforcing its commitment to excellence in the health and wellness industry.

"I foresee a significant increase in value, making this agreement a no-brainer for me. I am excited to be part of this journey and look forward to the remarkable advancements we can achieve together," Rick Pertile, CEO of MariJ Pharmaceuticals said.

BLEG Price Action

Branded Legacy's shares traded 12.94% higher at $0.0035 per share after the market close on Monday.