California CBD company buys nationally distributed chocolatier

California based CBD company, Gabriella’s Kitchen Inc. (CSE: GABY), announced the acquisition of Raw Chocolate Alchemy LLC on Wednesday.

Raw Chocolate Alchemy LLC branded and commonly known as Lulu’s Chocolates is a well known, and highly publicized, chocolatier who produces traditional chocolates as well as infused treats. Lulu’s currently has nationwide distribution in traditional grocers including Whole Foods Market, and has been featured and reviewed in multiple publications. Lulu’s also makes THC-infused chocolate sold in 35 California dispensaries.

Margot Micallef, Founder and CEO of GABY commented, “Chocolate and confections is one of the top selling categories in both the mainstream grocery channel as well as the regulated California cannabis edibles marketplace. With a strong start in both channels, a synergistic retail footprint, and a senior team with a proven track record of developing and commercializing award-winning products, Lulu’s represents a strong foundation for GABY’s rapid expansion in this market.” Micallef continued, “GABY is well-capitalized to execute on an aggressive organic and acquisitive growth strategy.  More importantly, GABY will continue to focus on transactions that generate returns on our capital employed which inevitably creates value for shareholders”.

The anticipated closing date is July 26, 2019.

Gabriella’s Kitchen will take on all assets of Raw Chocolate Alchemy LLC including $75,000 of outstanding debt in exchange for US$1,075,000 in GABY common shares.