CBMJ Announces Terms of Transaction to Acquire DeDonato Enterprises -- Purchase Price of $2.0M and Breakdown of $2.0M in Revenue

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[{"type":"text","content":"\n Palm Beach, FL, Sept. 03, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Canna Consumer Goods, Inc. (OTCPK: CBMJ) www.cannabroadcastmedia.com a premier broadcasting company is pleased to provide terms of the previously announced (“LOI”) with DeDonato Enterprises, L.L.C. to allow greater disclosure and transparency to our investors. The purchase price to acquire DeDonato is $2,000,000 (Two Million Dollars) consisting of $200,000 cash, a $1,800,000 (One Million Eight Hundred Thousand) note, and potential Restricted stock with a two-year hold.  The agreement also includes various management incentives for exceeding revenue growth expectations along with maintaining current gross margins. DeDonato currently generates about 55% of its annualized revenue of $2,000,000 (Two Million Dollars) from Sales of merchandise via Store.FlagAndCross.com, ThrasherCoffee.com, ThrasherCafe.com, and ValloraniCigars.com. Approximately 25% of the revenue is derived from advertising. DeDonato Enterprises currently owns and/or manages 47 news websites, including those belonging to high profile personalities, which collectively generate nearly 10 million page views per month. Advertising is brokered and placed through these sites and their associated email newsletters. Roughly 10% of the revenue comes from renting out the opt-in database of conservative consumers that DeDonato Enterprises has built over the years. Conservative candidates and campaigns retain the agency to send targeted fundraising messages.  The remaining 10% is generated from consulting services for various clients across several industries who can benefit from the expertise and mindshare of DeDonato. The plan is to complete the customary due diligence in the next three weeks including the signing of a Definitive Agreement and closing in September.  Assuming a September close, the financial results of the acquisition will be included in Q-3 financial results posted through OTC Markets. Mark Schaftlein, CEO of CBMJ, stated, \"We intend to utilize Flag and Cross as the initial building block of a long-term strategy to be a leading player in conservative media.  We intend to build upon the success of the initial acquisition to build the company through organic growth along with prudent acquisitions.” Brandon Vallorani, DeDonato’s CEO, remarked: &...

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