© Provided by BenzingaThe OLB Group, Inc. (NASDAQ: OLB), a B2B provider of e-commerce and payment solutions, will announce Tuesday its intention to enter the CBD industry with the likely purchase of a portfolio of CBD merchants.
“Once closed, the acquisition gives us a strong position in a marketplace that continues to demonstrate robust growth and profitability,” said Ronny Yakov, CEO of The OLB Group.
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The company has signed a non-binding letter of intent to acquire a portfolio of over 1,200 merchants in the CBD and other spaces, which would start using the company’s SecurePay platform, a payment gateway and business management terminal that provides compliant payment processing services.
Click here to listen Benzinga interview with OLB Group ($OLB) CEO Ronny Yakov on the Power Hour Podcast.
Why It’s Important: Yakov said his company believes this platform is “perfectly suited to address the lucrative CBD market.”
According to OLB, the target acquisition group reports an annual volume that surpasses $300 million.
The company expects the transaction to enable “further penetration into one of the fastest growing sectors in the United States,” by bringing on board an “accomplished and experienced sales organization.”
The acquisition could bring an additional $13 million in revenue and $3.6 million EBITDA, as per OLB’s own projections. These numbers would bring the company’s revenue to $25 million, almost doubling current revenue.
Precise details pertaining to the transaction were not made public.
OLB Price Action: OLB stock closed at $6.53 on Monday, up 10% from Friday’s close of $5.90.
Photo: rupixen.com on Unsplash.
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