This Blockbuster Three-Way Microcap Deal Is Getting Investors Excited

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Thursday, May 19, 2022

There’s plenty of M&A chatter all over the news lately. Twitter (NYSE: TWTR) getting bought (maybe) by Elon Musk et al. Marlboro maker Philip Morris (NYSE: PM) discloses talks to pick up Swedish Match for a rumored $15 billion or so. Amongst these mega deals, the one that could move the needle most right away is Sibannac, Inc. (OTCPK: SNNC) acquiring NOHO (OTC: DRNK) as soon as it completes a buyout of Smog Armor.

Early last year, Sibannac put its legacy operations in the rear-view mirror and set out on a mission to become a brand accelerator, creator, manufacturer, and retailer. The company cleaned up some debt and hasn’t looked back since, except perhaps to consider how some legacy products may fit into the future revenue channels, such as its Kratom gummy that will be produced at Sibannac’s FDA food facility in Scottsdale, Arizona.

Sibannac management has exercised a growth by acquisition model from the outset and the new three-way deal does a little more housekeeping while immediately adding to the portfolio as the latest in a string of M&A deals.

In April 2021, the company began its portfolio acquisition of Lifetime Branding as a pillar of its new direction. Lifetime Branding is a marketing company founded by marketing guru Eric Stoll that calls the likes of Coca-Cola, Titleist, Converse, Foot Joy, and more as clients. Stoll’s creative mind was behind Sibannac launching Campus Co. platform, a community for start-up and emerging brands in the Solutions Lifestyle category.

Stoll has repeatedly put his commitment to the business on full display, from an equity-based acquisition, swapping debt for SNNC stock, and joining the C-suite as Chief Marketing Officer. Apropos, Sibannac CEO, David Mersky, has a similar view about the future of the company, recently foregoing $475,000 in salary for shares of SNNC.

As Sibannac rotates all the former Lifetime Branding clients under the Campus Co. umbrella, new clients – such as Spur Agritech and Spur Biotech – have come on board. Deeper roots have been sewn for long-term revenue, such as a licensing agreement with Mitosynergy to develop a new Copper 1 Niacin product to improve immunity and an LOI to acquire sleep fitness innovator SOMO™ and its patent-pending acupressure point sleep mask to get some exposure to the $432 billion global sleep market.

And now Sibannac has agreed to acquire all the assets of NOHO, Inc. where they will be managed by Stoll and his world-class marketing and branding team at Campus Co., but not before NOHO acquires Smog Armor, a specific purpose acquisition company created to facilitate the transfer of the Smog Armor assets (consisting of eco-friendly, low
odor, zero VOC, high-quality primer and paint), from Delaware-based, Creative Carbon Solutions, Inc.

NOHO is buying Smog Armor with convertible preferred stock, meaning there will be no immediate dilution to shares. The closing is expected within 30 days. As soon as that deal closes, Sibannac will immediately (within 24 hours) execute the acquisition of the NOHO brand assets using warrants that will be distributed to NOHO shareholders of record on July 29, 2022. The warrants will be priced at a discount to market to the benefit of NOHO shareholders that will exercise the warrants for free trading common stock, generating revenue for Sibannac.

With the NOHO acquisition, Sibannac takes ownership of the “After Shot,” NOHO’s (an acronym for (“no hangover”) flagship product and rapid recovery morning shot made from herbs, adaptogens, vitamins, trace electrolytes, glutathione, and other ingredients. Sibannac also gets the RāD8 brand and its alternative health products in development. The acquisition dovetails with a newly announced collaboration between Sibannac and Zicam creator Gary Kehoe.

Investors still have plenty to look forward from Sibannac, including firm details on the latest acquisition upon the groups hammering out a definitive agreement and information on a secretive product under development that Sibannac has been teasing.

"This is an absolute win-win for all parties. The NOHO brands will now be much stronger under the Sibannac umbrella and the NOHO shareholders are getting tremendous value in return with Smog Armor bringing in an ultra-talented executive team and a terrific product line with its patented green tech paint,” said Mersky. “As a large remaining shareholder following the closing, it was vitally important that the incoming team had the capabilities and assets to propel the company into future success and earnings. The transaction will result in the best allocation of assets for both companies," he concluded.

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Sibannac, Inc. (OTCPK: SNNC) Full Corporate Write-Up: Click Here.

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