Silo Wellness, Inc. (CSE: SILO) (OTCQB: SILFF) is buying NUGL Inc. (OTC Pink: NUGL) in a deal valued at C$43 million. Last month Silo announced it was partnering with Jamaica-based Kaya Group, which is owned by Nugl. Nugl and Kaya merged in April 2022 to form a multifaceted cannabis lifestyle company.
The company operates three Kaya Herb House retail locations and a Gap Café wellness center, which would partner well with Silo’s expertise in managing psilocybin wellness retreats in Jamaica’s legal psilocybin market. At the time of that announcement, Silo acquired just over 25 million shares of Nugl. Now the company has decided to buy the remaining shares.
Silo also noted that NUGL/Kaya had top-line revenue of $2.2 million in 2022 along with $1.5 million in gross profit and a $2. million net loss. This was an increase in revenue from $1.8 million in 2021. The company reported revenue in its most recent quarter ending in June of $708,796.
Still, Nugl was reported as a “going concern.” The company has experienced recurring net losses and negative cash flows from operations since inception and as of June 30, 2023, has an accumulated deficit of approximately $7,877,396 (December 31, 2022 – $7,769,953) and a working capital deficit of approximately $610,739 (December 31, 2022 – $753,675). As of June 30, 2023, the company had $75,168 (December 31, 2022 – $86,575) in cash and cash equivalents with a working capital deficit of $610,739.
At the time, Silo Wellness said its partnership with NUGL/Kaya Group would bring even more opportunity for expansion and solidifies the company’s presence in Jamaica, a region championing the burgeoning psychedelics industry.
Mike Arnold, founder and CEO of Silo Wellness and an Oregon attorney said “Our collaboration with Kaya is a monumental stride in realizing our vision to offer holistic treatments that combine the best of and broaden our international footprint. We’re committed to providing transformative plant medicine wellness experiences.”