Weekend Unlimited Industries Inc., announced the execution of a non-binding Letter of Intent, dated June 21, 2020, to acquire 100% of Ruby Mae’s, LLC intellectual property, including trademarks, copyrights, trade secrets, inventions and know-how.
Weekend’s brand alliance and licensing agreement with Ruby Mae’s announced on September 17th, 2019, accelerated both the WKND! and Orchard Heights market entry and reach in Oklahoma. The proposed acquisition of the Ruby Mae’s brand will further accelerate the Weekend’s brand recognition within Oklahoma and substantially expand Weekend’s lineup of brands, products, and sales.
“The proposed acquisition of the iconic Oklahoma-based brand is a significant milestone for the Company. With a presence in over 350 dispensaries, combining both Ruby Maes and Weekend Unlimited brands will add exceptional traction to our growth in the Oklahoma medical cannabis market,” said Chris Backus, CEO of Weekend. “Together we intend to continue the expansion of new innovative products while simultaneously increasing the sales and exposure of our existing portfolio.”
Pursuant to the terms of the LOI, the Weekend shall acquire the Intellectual Property in exchange for USD$2,000,000, which shall consist of USD$500,000 in cash and USD$1,500,000 in shares of the Weekend. At closing, Ruby Mae’s shall receive USD$200,000 in cash and USD$800,000 of shares with the remaining shares and cash being paid out over a period of 24 months from closing. In addition, the vendors shall be eligible for bonus shares of the Company vesting over a period of two years from closing and based on specific revenue targets being achieved and entry into additional U.S. states. At closing, the Weekend shall enter into a licensing agreement with the vendors for use of the Ruby Mae’s brand in consideration for a licensing fee and the Ruby Mae’s Co-founders will be granted 2 board seats of Weekend.
During the period from April 1, 2020, to June 18, 2020, Ruby Mae’s branded products received purchase orders for in aggregate USD$700,923, generating USD$414,127 in revenue (the difference of $286,796 awaiting delivery) with a gross profit of 33%. Additionally, from April to May 2020, Ruby Mae’s demonstrated revenue growth by 74% month-over-month, while increasing gross profit by 63%.
Travis Hunter, CEO, and Founder of Ruby Mae’s added, “We believe that the Weekend is the right home for the Ruby Mae’s brand at this point in time to go along with the WKND! and Orchard Heights brands. The Weekend will provide the Ruby Mae’s brand with the resources and capabilities to rapidly grow the company and will permit the brand to continually and aggressively gain market share in the Oklahoma cannabis market.”
The completion of the acquisition remains subject to completion of due diligence and execution of final binding definitive documentation, which is expected to be completed within 30 days of the date of the LOI. There can be no assurances that the completion of the acquisition will occur on the terms set forth above or at all. In accordance with Oklahoma regulations and legislation, neither the Company, nor its subsidiary, shall acquire any interest in regulated inventory or licenses related to the cultivation, manufacture, distribution, or sale of cannabis or cannabis-related products in connection with the transaction. The final terms and conditions of the transaction will be outlined at the execution of an asset purchase agreement and a licensing agreement. Located in Bixby, Oklahoma, Ruby Mae’s is one of Oklahoma’s most recognizable cannabis brands. Ruby Mae’s products currently include premium, award-winning medical cannabis edibles and pre-rolls. Learn more at https://www.rubymaes.com/