Transaction accelerates our Amazon
and DTC eCommerce brand focused strategy , strengthens balance
sheet and provides additional capital flexibility to invest in
further acquisitions
Company reiterates fiscal 2023 revenue
guidance of $72 million to
$82 million
CLEARWATER, Fla., Oct. 27,
2022 /PRNewswire/ -- Upexi Inc. (NASDAQ: UPXI)
(the "Company" or "Upexi"), a multi-faceted Amazon and
Direct to Consumer brand owner and innovator in aggregation,
today announced the sale of select CBD assets to Bloomios, Inc.
(OTC: BLMS) for approximately $23.5
million.
The closing of this transaction accelerates our Amazon and DTC
eCommerce brand focused strategy , while strengthening the balance
sheet and providing additional capital to invest in further
acquisitions in our pipeline. Additionally, with this closing, the
Company has strengthened its own product scalability through a
manufacturing agreement with Bloomios to produce certain Upexi
products at their GMP certified facility in Florida.
Allan Marshall, CEO of Upexi,
commented, "The sale of our select CBD assets falls in line with
our strategy to accelerate our Amazon and DTC eCommerce brand
focused strategy while increasing our shareholder value. Our
multiple brands focused on health, wellness and pets continue to
perform incredibly well during this recessionary period. This
organic growth, coupled with our robust acquisition pipeline we can
now aggressively close, gives us high confidence we will be able to
continue to grow revenue and profits year-over-year. The Bloomios
partnership created through this sale along with the long term
customers and vendor relationships remain in place for future
growth"
The transaction eliminated certain intangible assets and
provided the Company with $5.5
million in cash, $9.5 million
in loan receivables and $8.5 million
in preferred equity in Bloomios Inc. In addition, on October 19, 2022 the Company obtained a
$3 million, 10-year mortgage at an
interest rate of 4.8% on its headquarters in Florida. The
funds were used to reduce the outstanding short term acquisition
loans signed on June 28, 2022,
increasing the amount available for future acquisitions to
$10.8 million. The main assets sold
were originally acquired for approximately 6.3m in cash and stock, company value increased
through organic growth and valued partnerships.
The Company is reiterating its revenue guidance for fiscal 2023
of $72 million to $82 million and will issue a capital plan with
updates in Nov 14, 2022, Quarterly
filing.
About Upexi, Inc.
Upexi is a multifaceted brand
owner with established brands in the health, wellness, pet, beauty
and other growing markets. We operate in emerging industries with
high growth trends and look to drive organic growth of our current
brands. We focus on direct to consumer and Amazon brands that are
scalable and have anticipated, high industry growth trends. Our
goal is to continue to accumulate consumer data and build out a
significant customer database across all industries we sell into.
The growth of our current database has been key to the year over
year gains in sales and profits. To drive additional growth, we
have and will continue to acquire profitable Amazon and eCommerce
businesses that can scale quickly and reduce costs through
corporate synergies. We utilize our in-house, SaaS programmatic ad
technology to help achieve a lower cost per acquisition and
accumulate consumer data for increased cross-selling between our
growing portfolio of brands.
Forward Looking Statements:
This news release contains "forward-looking statements" as that
term is defined in Section 27A of the United States Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
Statements in this press release which are not purely historical
are forward-looking statements and include any statements regarding
beliefs, plans, expectations or intentions regarding the future.
Actual results could differ from those projected in any
forward-looking statements due to numerous factors. Such factors
include, among others, the inherent uncertainties associated with
business strategy, potential acquisitions, revenue guidance,
product development, integration and synergies of acquiring
companies and personnel. These forward-looking statements are made
as of the date of this news release, and we assume no obligation to
update the forward-looking statements, or to update the reasons why
actual results could differ from those projected in the
forward-looking statements. Although we believe that the beliefs,
plans, expectations and intentions contained in this press release
are reasonable, there can be no assurance that such beliefs, plans,
expectations or intentions will prove to be accurate. Investors
should consult all of the information set forth herein and should
also refer to the risk factors disclosure outlined in our annual
report on Form 10-K and other periodic reports filed from
time-to-time with the Securities and Exchange Commission.
Company Contact
Andrew Nortstrud
Chief Financial Officer
andrew.norstrud@upexi.com
Investor Relations Contact
KCSA Strategic
Communications
Valter Pinto or Jack Perkins
Email: Upexi@KCSA.com
Phone: (212) 896-1254
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content:https://www.prnewswire.com/news-releases/upexi-announces-sale-of-select-cbd-assets-for-23-5-million-301660641.html
SOURCE Upexi, Inc.