Freedom Leaf Archives - Green Market Report

William SumnerMarch 6, 2018


Freedom Leaf (FRLF) announced today that it had signed a definitive agreement to acquire the Irie CBD Product Line, which includes all assets, formulating equipment, trademarks, formulas, products, and a full manufacturing and processing facility located in Oakland, California

Irie CBD is a California-based manufacturer of cannabidiol tinctures, concentrates, edibles, and topicals. In 2017, Irie CBD reported approximately $1.5 million in revenue.

As part of the agreement, Freedom Leaf will pay approximately $400,000 in cash and 1.8 million in shares of common stock, valued at $0.23 a share, with an anticipated closing date of April 15, 2018.

Given the company’s troubled financial status, the transaction has raised a few eyebrows. In the company’s 10Q for the fiscal quarter ending on Dec. 31, 2017, it was reported that the company had a $6.3 million deficit, no cash, and did not “sufficient resources to effectuate” the business; leaving some to wonder how the deal was paid for.

The deal also includes assesses and trademarks in addition to the Irie CBD line, including the following: Earth Born Inc. California, Earth Born Inc. Delaware, Irie Living, and Genesis Media Works LLC; which has also operated under the names Terra’s Way,” “Irie Hemp Company,” and “Earth Born Botanicals”.

“Completing the Irie CBD acquisition is directly in line with Freedom Leaf’s goal of creating a more financially stable corporation in the cannabis/hemp space,” said Freedom Leaf CFO, Richard Groberg, in a statement. Freedom Leaf expects to see a direct growth in sales for the target’s existing product lines as well as providing various cost-saving and revenue-enhancing aspects to Freedom Leaf’s existing businesses.”

Recently, the company also announced that it had signed a national distribution agreement with Quality Products Distribution Inc. to distribute its Hempology product line. The agreement is expected to help the Hempology line generate approximately $2 million in revenue in 2018.

Despite the recent announcements, the company’s stock continues to slide downwards. Trading at $0.19 cents per share, the company’s stock is down 55% from its all time of $0.43 cents per share, which it reached in January, and down 38% from the previous month’s high of $0.31 cents per share.

William SumnerFebruary 22, 2018


On Feb. 22, 2018, Freedom Leaf Inc. (FRLF) announced that it had filed its 10Q for the quarter ending December 31, 2017, yet the company included no financial information in the press release. In the filing, the company reported revenue for the quarter at $6,332 versus last year’s $448,566. Freedom Leaf delivered a net loss of $742,413 for the quarter versus last year’s loss $111,361 for the same time period.

In the filing, the company stated, “As of December 31, 2017, the Company had $0 in cash. We do not have sufficient resources to effectuate our business.” It went on to say, “We will have to raise funds to pay for our expenses. We may have to borrow money from shareholders or issue debt or equity or enter into a strategic arrangement with a third party. ” The company has an accumulated deficit of $6.3 million. It has also been issuing stock to pay for services, which is never a good sign.

Management’s Statement

The company also announced that it would soon launch its CBD product line, Hempology, in 10 US states; including California, Nevada, Washington, Oregon, Texas, Michigan, Georgia, and Alaska.

“Thanks to the efforts of our new CFO and our team, we now expect to move quickly into a new phase of the Company’s development as we continue to acquire and integrate additional revenue-producing companies,” said Freedom Leaf President and CEO, Clifford Perry, in a statement. “This 10Q is only a stepping stone to our goal to become debt free and move forward with our new revenue streams: Hempology and Leafceuticals.”

To meet production demands, the company’s wholly owned division, Leafceuticals, Inc. operates a NuAxon industrial CO2 supercritical extraction facility in North Las Vegas. So far the facility has produced 12 kilos, valued at $200,000, and expects to replicate those figures on a monthly basis.

The company is also the publisher of Freedom Leaf magazine. For six months ending December 31, 2017, the magazine only recorded revenue of $5,826, while the costs related to the magazine were $68,850.

Stockwise, the company has been on a roller coaster over the last month. In mid-January, Freedom Leaf’s stock began to soar, peaking out at $0.43 per share before taking a precipitous tumble down to $0.22 per share. During that peak period, the company retired approximately $167,748 in debt and accrued wages through the issuance of approximately 5.4 million common shares.

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