Sibannac, Inc. entered into a Memorandum of Understanding to acquire Stellar Chemical Corp. for $10 million.
April 11, 2021
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Sibannac, Inc. (OTCPK:SNNC) entered into a Memorandum of Understanding to acquire Stellar Chemical Corp. for $10 million on April 12, 2021. The transaction contemplates a $10 Million acquisition, consisting of $2 Million in cash and the remainder in a new class of preferred, restricted stock, convertible to common shares between $.75-$1. The parties are engaging in a due diligence period for thirty days and will be issuing a $0.25 million convertible note to Stellar as a break-up fee after the diligence period expires, but will be cancelled upon the successful closing of the transaction.
Stellar reports $4.5 million in annual revenue. Management anticipates that based on current earnings and the synergy of both companies, there will be a positive effect on the share price, as all the stock issued will be preferred and restricted from sale, having no initial dilutive effect on the common stock and thereafter subject to restriction under SEC Rule 144. As of May 3, 2021, the transaction is expected to close in May 2021.
Sibannac, Inc. is engaged in creating and selling premium next generation wellness products in the consumer packaging goods space. The Company specializes in creating and selling premium Cannabidiol (CBD) products. In addition to mainstream supplements, the Company is producing Kratom and Hemp-derived Delta-8 THC products for wholesale and retail sales and distribution. The Company operates a food-grade facility that is fully cGMP compliant and is vertically integrated, with product design, manufacturing, sales and marketing. It provides contract manufacturing and white labeling services for independent firms and creates and manages its own brands from the concept phase through to distribution. It has opened its platform to outside clients to offer its marketing and brand-building assets, through its wholly owned subsidiary, The Campus Co., which provides services to wellness brands. Its consumer brands include Converse, Titleist, Coca-Cola, and Supercandy.
SIBANNAC, INC. 