Walker Lane will acquire 55% of the outstanding CBDI shares and will retain administrative control of the combined companies. The board has also approved a $250,000 private placement associated with the CBD cosmetics acquisition, though the financing is not part of the terms of acquisition.
Phillip Allen will continue as CEO and chairman of Walker Lane, while Tony Panasuk will continue as CFO of Walker Lane and serve as CEO and CFO of CBDI.
"Our board of directors has taken the approach to diversify WKLN for our shareholders' benefit," said Allen. "We believe the CBD market for cosmetics applications may be very lucrative and believe Cosmetics By Design ten CBD cosmetic formulations will be well-received by the market."