KZ1 sold to Kannaway for $5 million
KZ1 has been sold to Kannaway for $5 million.
Kannaway’s parent company Medical Marijuana revealed the acquisition in an August 1st press-release.
As per the terms of the acquisition;
Kannaway acquired essentially all of KZ1’s operating assets for a purchase price of $5 million and will integrate the KZ1 and Kannaway sales forces.
KZ1 was a 2017 reboot of eXfuze. The reboot saw then CEO Don Cotton hand over the reigns to Robert Kelley (right).
Kelley had been with exFuze “for seven years” and Cotton credited him with “leading (eXfuze’s largest market in Japan”.
BehindMLM reviewed KZ1 in May 2019. We found a drastically marked up health drink, primarily marketed through illegal and unsubstantiated health claims in Asia.
Presently traffic to KZ1’s website is so low that SimilarWeb doesn’t track it.
Kannaway spending money on acquisitions is a bit strange, seeing as it itself appears to be in financial trouble.
BehindMLM recently covered Kannaway selling access to distributor and customer info to TranzactCard.
The terms of the sale are believed have resulted in favorable financial terms for Kannaway management.
We noted on July 28th that traffic to Kannaway’s website was in decline. Medical Marijuana’s share price has also dropped from 1.3 cents to 0.3 of a cent year on year.
By acquiring KZ1, Kannaway management appear keen to resuscitate the business in Japan.
Commenting on the acquisition, Kannaway President Bill Andreoli stated: “The combining of these two companies’ products and distributor genealogies will have an immediate positive effect on revenue in Japan.
Tim Scott, CEO said, “With this acquisition, combining the KZ1 sales force with Kannaway’s, we expect to see a strong impact in Japan.”
Pending any further updates, we’ll keep you posted.