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FT. LAUDERDALE, Fla., Aug. 23, 2019 (GLOBE NEWSWIRE) -- Cardiff Lexington Corporation (OTC:CDIXBB) and Acela BioMedical, LLC in Maysville, Ky announced today that they have signed a Letter of Intent whereby Acela BioMedical would become a subsidiary of Cardiff Lexington. The Management and Board of Directors of Cardiff Lexington Corporation have taken bold, decisive actions in order to enter the ever-growing hemp industry and with Acela BioMedical they have found an ideal partner. Consummation of the partnership is conditional upon successful completion of final stage due diligence and transfer of purchase consideration.
Acela Biomedical, its management and employees are committed to the continued growth and expansion of the Company in Maysville, KY. No operational changes are planned, and current ownership will remain in place under a new structure that empowers significant capital investment to meet the rapidly expanding opportunities and to implement the Company’s growth strategies. Andrew Culbertson Acela CEO will also join the Board of Directors of Cardiff Lexington.
The parties have been in confidential discussions and negotiations for several months having reached agreement in principal and are working diligently to finalize their transaction as visualized in their recently executed Letter of Intent. The parties given the strong public interest and much misinformation, rumors, and speculation have decided to publicize their intentions now prior to anticipated future closing.
About Acela BioMedical, LLC
Acela Biomedical is an existing Hemp grower, distributor, processor, extractor, and retailor specializing in CBD Oil Production with over two million plants in the ground in Kentucky. Its processing facility is currently in operation. CBD Hemp Cultivation and CBD Oil Production is a specialized high value agriculture category with more in common horticulture than traditional industrial hemp (fiber and oilseed types). Growing industrial hemp for CBD oil production is approached as a medicinal crop, and grown to suit the requirements of processors and buyers. Acela is building a strong foundation in Kentucky hemp cultivation, production, and processing to deliver consistently higher growth and higher value for our shareholders. Bringing production online at our Kentucky hemp processing plant will represent the Company’s latest and most significant milestone toward that objective.
Acela Biomedical will continue as a Kentucky Corporation operating as subsidiary of Cardiff Lexington. “We are excited to join forces with Andrew Culbertson and his exceptional team,” stated Alex H. Cunningham, Cardiff Lexington CEO. “Andrew and his team will continue to operate and lead Acela Biomedical growth and expansion; our partnership will accelerate that growth and allow Acela to greatly expand capacity and develop both new products and blaze into new endeavors.”
Andrew Culbertson, Founder of Acela Biomedical responded: “We have established deep roots within the Hemp Industry in Kentucky and are committed to supporting our farmers in Kentucky, Ohio, and Tennessee. This new partnership brings Acela the resources and horsepower for us to make a significant positive impact in Kentucky’s Hemp Industry and affords us the capability to expand our operations in Ohio, Tennessee, and West Virginia. We too are excited that with our alliance with Cardiff Lexington’s to be able to implement many strategies formulated over the past four years.”
Cardiff Lexington’s business model targets acquisition of middle market private niche companies both mature, and, second stage with high growth potential. The Cardiff Lexington umbrella enables business owners to exit personal equity and to take advantage of the capitalization power of a public company without losing independent management control. Fundamental to the Cardiff Lexington strategy, acquisitions become standalone autonomous subsidiaries gaining advantage of the power of a public company. Owners gain liquidity, diversification, pooled resources, leverage value, and mitigated risk. As a Cardiff Lexington subsidiary these companies gain both the enhanced ability to raise money for operations or expansion while also establishing a longer-term equity exit strategy.
For Investors, Cardiff Lexington seeks to aggressively grow and hold assets that create a diversified lower risk environment that over the long term protects and safely enhances investment through a diversified continually growing niche holding company.
About Cardiff Lexington Corporation: Cardiff Lexington is a public holding company, much like a cooperative, leveraging proven management in private companies that become subsidiaries. Our focus is not industry or geographic-specific, but rather proven management, market, and margin. Cardiff Lexington targets acquisitions of mature, high growth, niche companies. Cardiff Lexington's strategy identifies and empowers select income-producing middle market private businesses and commercial real estate properties. Cardiff Lexington provides these companies both 1) the enhanced ability to raise money for operations or expansion, and 2) an equity exit and liquidity strategy for the owner, heirs, and/or Investors. For investors, Cardiff Lexington provides a diversified lower risk to protect and safely enhance their investment by continually adding assets and holdings. Cardiff Lexington is led by strong and talented team of executives and advisors providing expert acquisition, market guidance and added value for subsidiaries and investors.
FORWARD LOOKING STATEMENT: This news release contains forward looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company's current views with respect to future events that involve risks and uncertainties. These risks include the failure to meet schedule or performance requirements of the Company's contracts, the Company's liquidity position, the Company's ability to obtain new contracts, the emergence of competitors with greater financial resources, and the impact of competitive pricing. In the light of these uncertainties the forward-looking events referred to in this release might not occur.
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Source: Cardiff Lexington Corporation