8-K
filed July 6, 2023, 7:59 PM ET
ticker CNFN
CIK 0001352952
M&A
confidence high
sentiment neutral
materiality 0.80
CFN Enterprises Inc. (CNFN): M&A transaction — CFN Enterprises acquires co-packing/3PL assets for 40M shares plus $1M cash, $5M debt financing
CFN Enterprises Inc.
- Acquired co-packing and 3PL assets from RAN CoPacking Solutions for 40M shares, $1M deferred cash, and up to 16M earnout shares tied to revenue/profit targets.
- Assumed LA facility lease: ~46,000 sq ft, 4 years remaining, current monthly rent $77,286, increasing to $86,937.
- Issued $5M promissory notes with 15-month term; total repayment $7.5M. Notes secured by Ranco assets and guaranteed by CFN.
- Entered exclusive 5-year licensing agreement with PW Industries for Packwoods-branded hemp and nicotine product manufacturing/distribution.
- Two note lenders are existing shareholders/advisors to the company.
Key facts
Extracted from this filing and checked against the source text.
Debt Financings
SEC 8-K Item 2.03/2.04
confidence 0.9
CFN Enterprises Inc. incurred loan of $5 million with certain lenders including Isaac Shehebar 2008 AIJJ Grantor Retained Annuity Trust and Ezra A. Chehebar maturing 15 month term.
- Instrument
- loan
- Principal
- $5 million
- Counterparty
- certain lenders including Isaac Shehebar 2008 AIJJ Grantor Retained Annuity Trust and Ezra A. Chehebar
- Maturity
- 15 month term
- Event
- incurrence
Exact text from the filing
Ranco entered into promissory notes with certain lenders to borrow an aggregate of $5 million (the “Notes”). The Notes have a 15 month term and are subject to mandatory equal repayments commencing on the fourth month following issuance, for an aggregate repayment of $7.5 million.
View on SEC.gov
M&A Transactions
SEC 8-K Item 2.01/5.01
confidence 0.9
CFN Enterprises Inc. completed an acquisition involving RAN CoPacking Solutions LLC (closed 2023-07-01).
- Action
- acquisition
- Counterparty
- RAN CoPacking Solutions LLC
- Closing
- 2023-07-01
Exact text from the filing
(the “Company”), and its wholly owned subsidiary, RANCO, LLC, a Delaware limited liability company (“Ranco”), entered into an asset purchase agreement (the “Asset Purchase Agreement”) with RAN CoPacking Solutions LLC, a California limited liability company (the “Seller”) and the members of the Seller (collectively, the “Founders”).
View on SEC.gov
Material Agreements
SEC 8-K Item 1.01/1.02
confidence 0.9
CFN Enterprises Inc. entered into Notes with certain lenders valued at $5 million (effective 2023-07-01).
- Action
- entry
- Agreement
- notes offering
- Counterparty
- certain lenders
- Value
- $5 million
- Effective
- 2023-07-01
Exact text from the filing
Also on July 1, 2023, Ranco entered into promissory notes with certain lenders to borrow an aggregate of $5 million (the “Notes”).
View on SEC.gov
Material Agreements
SEC 8-K Item 1.01/1.02
confidence 0.9
CFN Enterprises Inc. entered into Packwoods Private Label Services and Intellectual Property Licensing Agreement with PW Industries LLC, RS Distributions LLC, and Packaging Innovations LLC (effective 2023-07-01).
- Action
- entry
- Agreement
- license
- Counterparty
- PW Industries LLC, RS Distributions LLC, and Packaging Innovations LLC
- Effective
- 2023-07-01
Exact text from the filing
Also on July 1, 2023, Ranco entered into the Packwoods Private Label Services and Intellectual Property Licensing Agreement (the “Licensing Agreement”), with PW Industries LLC, a Wyoming limited liability company (“PW”), RS Distributions LLC, a Delaware limited liability company (“RS”), and Packaging Innovations LLC, a Wyoming limited liability company (“PI”, and together with PW and RS, the “Licensors”), for the exclusive manufacturing, packaging and distribution of, and wholesale and retail sales of a variety hemp-based inhalable (pre-roll and vaporizer), edible products, and disposable nicotine-based inhalable vaporizer products, and the purchase of packaging materials to be used with Packwoods-branded cannabis products (containing more than 0.3% delta-9 THC by weight) and the distribution of those packaging materials to licensed cannabis manufacturers designated by PW, using the Licensor’s licensed property for a 5 year exclusive term, subject to certain exclusions.
View on SEC.gov
Material Agreements
SEC 8-K Item 1.01/1.02
confidence 0.9
CFN Enterprises Inc. entered into Asset Purchase Agreement with RAN CoPacking Solutions LLC and its members valued at 40 million shares of Company common stock and $1 million in cash consideration (effective 2023-07-01).
- Action
- entry
- Agreement
- asset purchase
- Counterparty
- RAN CoPacking Solutions LLC and its members
- Value
- 40 million shares of Company common stock and $1 million in cash consideration
- Effective
- 2023-07-01
Exact text from the filing
On July 1, 2023, CFN Enterprises Inc. (the “Company”), and its wholly owned subsidiary, RANCO, LLC, a Delaware limited liability company (“Ranco”), entered into an asset purchase agreement (the “Asset Purchase Agreement”) with RAN CoPacking Solutions LLC, a California limited liability company (the “Seller”) and the members of the Seller (collectively, the “Founders”).
View on SEC.gov
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