CBD products company Suntex Enterprises Inc (OTCMKTS:SNTX) made a significant announcement in conjunction with the V Group Inc. The company welcomed V Group Inc shareholders to the fold since they are going to be part of Suntex’s base of shareholders in the future.
The announcement is a significant one considering the fact that Suntex made its name in the CBD industry through a product that had actually been incubated by V Group Inc. The product in question is Pumped Fitness CBD.
Since Suntex started selling Pumped Fitness CBD, it has managed to record significant growth and it is expected to continue in the same vein through more key acquisitions.
One such acquisition is that of Budding Botanicals. In addition to that, Suntex is also looking to bring about new CBD products into the market through internal developmental efforts. Since the product had been initially developed V Group Inc, Suntex Inc has decided to compensate its shareholders through a dividend or a spin-off.
However, at this point, the ratio by which Suntex shares are going to be offered to V Group shareholders has not been decided yet. The cut-off date for the same also remains undecided. However, the company is going to announce the specifics of the whole thing publicly once the decision is made.
The Chairman of Suntex Enterprises Larry Twombly spoke about the upcoming transaction. He stated that V Group has a unique business model that helps its own shareholders to partake in the rewards of incubated products that eventually find success. He went on to state that both Suntex and V Group are committed to creating as much value for their shareholders as possible.
On the other hand, Twombly also stated that at this point Suntex’s subsidiary company Budding Botanicals is also working on a wide range of CBD products. The products are going to be marketed through online channels and also through retail outlets. These products coupled with Pumped Fitness are expected to provide the revenue growth that Suntex is aiming for.
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