According to a news report by Hemp Industry Daily, the Federal Trade Commission has sent out warning letters to several companies about their CBD health claims.
There are several strategies that consumers can try to use to find quality products. One news article by the Chicago Tribune on How to Find High-Quality CBD Oil identifies several qualities to look at, including:
Health claims made by CBD brands are a concern. According to a news report by WWD, the Food and Drug administration “been considering the safety of cannabidiol since its precursor hemp came off the Controlled Substances Act list last December, has now targeted claims about the ingredient’s potential health benefits.”
MOTA VENTURES CORP.
For further information, readers are encouraged to contact Joel Shacker, Chief Executive Officer at +604.423.4733 or by email at or www.motaventuresco.com
ON BEHALF OF THE BOARD OF DIRECTORS
Total consideration for the Transaction is US$32,000,000, of which US$1,500,000 was paid upon completion of the Transaction, US$1,500,000 is due and owing within six months, and the balance will be satisfied through the issuance of 47,125,000 common shares of the Company at an effective price of CAbout Mota Ventures Corp..80 per share. Unified will also be paid a bonus of US$5,000,000 in shares at each level, if First Class reports gross revenues of $42,000,000, $52,000,000 and $62,000,000 in 2020. Share consideration to Unified will be subject to a thirty-six month pooling agreement, as well as a clawback right which allows Mota to retrieve a portion of the consideration paid to Unified if certain revenue levels are not met in 2020, as further described below.
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For more information on First Class, readers are encouraged to review their website, www.firstclasscbd.com .
Mota Ventures is seeking to become a vertically integrated global CBD brand. Its plan is to cultivate and extract CBD into high-quality value-added products from its Latin American operations and distribute it both domestically and internationally. Its existing operations in Colombia consist of a 2.5-hectare site that has optimal year-round growing conditions and access to all necessary infrastructure. Mota Ventures is also seeking to acquire revenue-producing CBD brands and operations in both Europe and North America, with the goal of establishing an international distribution network for CBD products. Low cost production, coupled with international, direct to customer sales channels will provide the foundation for the success of Mota Ventures.
Chief Executive Officer
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Following completion of the Transaction, Unified will continue to assist with the management of operations of First Class, and will be entitled to the reimbursement of operational expenses along with a service charge of twenty percent. The Transaction has not resulted in a reverse takeover or fundamental change for the Company under the policies of the Canadian Securities Exchange, nor has it resulted in the creation of any new insider or control person of the Company. No changes to the board of directors, or management, of the Company resulted from completion of the Transaction.
Joel Shacker, Chief Executive Officer of the Company, commented “The acquisition of First Class is a milestone for the Company, and aligns with our goal of becoming a vertically integrated CBD brand. The revenue they generated in 2019 positions us to compete with the largest cannabis companies in the world, and the infrastructure they have in place is a key building block our organization can use to expand further in the US and Europe.”
First Class offers a wide range of products, including CBD oil drops, CBD gummies, CBD pain relief cream and CBD skin serum.
The total consideration for the acquisition was US$32 million, of which US$1.5 million was paid upon completion.
Mota Ventures Corp (CSE:MOTA) (OTCMKTS:PEMTF) has bought online retail business First Class CBD for a total of US$32 million – a deal, which it says, will allow the firm to compete with the largest cannabis companies in the world.
Unified will also be paid a bonus of US$5 million in shares at each level if First Class reports gross revenues of US$42 million; US$52 million and $62 million in 2020.
READ: Mota Ventures completes R&D facility in Colombia
The share consideration part is subject to a 36-month pooling agreement, as well as a clawback right which allows Mota to retrieve a portion of the consideration paid to Unified if certain revenue levels are not met in 2020.
With a profit margin of around 14%, Unified generated net income of around US$2.7 million from the operations of First Class in 2019, Moto said in a statement, though it noted these figures have not been audited and are based on calculations prepared by Unified.
First Class CBD, based in Wyoming, USA is operated by Unified Funding, LLC via subsidiary First Class USA.
“The acquisition of First Class is a milestone for the company, and aligns with our goal of becoming a vertically integrated CBD brand,” said Joel Shacker, the CEO of Mota Ventures.
A further US$1.5 million is due within six months, while the balance of the purchase price will be satisfied with the issue of 47.125 million shares at an effective price of C”The revenue they generated in 2019 positions us to compete with the largest cannabis companies in the world, and the infrastructure they have in place is a key building block our organization can use to expand further in the US and Europe.”.80 each.