Business
INTERNATIONAL STAR ANNOUNCES INITIAL CLOSE OF ACQUISITION OF BUDDING EQUITY INC. AND CONCURRENT INSTITUTIONAL FINANCING
INTERNATIONAL STAR ANNOUNCES INITIAL CLOSE OF ACQUISITION OF BUDDING EQUITY INC. AND CONCURRENT INSTITUTIONAL FINANCING.
About this update from International Star, Inc.
[{"type":"text","content":"Press ReleaseFor Immediate ReleaseINTERNATIONAL STAR ANNOUNCES INITIAL CLOSE OF ACQUISITIONOF BUDDING EQUITY INC. AND CONCURRENT INSTITUTIONAL FINANCING ILST’s initial acquisition under its new managementis a revenue producing cash-flow-positive companyMiddletown, DE, August 24, 2022 -- International Star, Inc. (OTC:ILST) (the \"Company\" or “ILST”) today announced that it has entered into a transaction to acquire Budding Equity, Inc., (The “Acquiree” or “BEi”) a Canadian company that partners with movie studios and celebrities to monetize their intellectual property (IP) in the burgeoning global cannabis industry, using best in class manufacturers and distributors.The Company has closed on an initial 6% stake in BEi and has secured an option to acquire the remaining 94% within 12 months (the “Transaction”). In addition, the Company is providing BEi with a senior secured loan of up to approximately $545,000 to expand inventory and spur sales growth.Capital for the Transaction was provided by Leonite Fund I, LP, a family office based in New York.Selected Highlights of Budding Equity Inc.:BEi currently generates royalties via sales in two segments:Royalty revenue generated from celebrity cannabis strains (the “Cannabis Segment”) that are sold across 6 states and projected to increase to 10 states by Q4 2022 or Q1 2023.Royalty revenue generated by sales of licensed and branded hardware (the “Hardware Segment”).Historical and projected figures for the Cannabis Segment are:2021 royalty generating revenue of approximately $4,240,000Estimated year to date 2022 royalty generating revenue of $3,400,000Projected full year 2022 royalty generating revenue of $5,000,000 on existing productsLifetime product sales in which BEi receives royalties estimated to be in excess of $10,000,000Additional licensing and product releases with new celebrities are in development and are expected to come online in 2023.A new joint venture has been formed through which BEi intends to directly manufacture and distribute its branded hardware products, which is expected to deliver increased margins when compared to the licensing business model.Commenting on the transaction, Nochum Greenberg, the Company’s interim CEO and Chairman of the Board, stated: “With this transaction, the Company has taken the first step on its strategic plan to build Internatio...