NUGL Stock Surges On Announcing $20M Equity Raise To Kaya Group JV

NUGL Inc. NUGL, a cannabis-focused technology-based multimedia platform, has secured $20 million financing through a Regulation A capital raise.

Based in Los Angeles, the company announced on Tuesday that it has completed the approval and publication of the transaction.

The capital raise will fund the joint growth strategy into the respective countries of operation for Kaya Group, a vertically integrated collection of medical cannabis companies, and NUGL, the company disclosed, adding that the 2022 budget includes and is not limited to the USA, Jamaica, the Caribbean and Uruguay.

NUGL and Kaya’s Strategic JV

NUGL and Kaya teamed up in August to utilize each other’s intellectual property and create jointly owned intellectual property.

Under the joint venture agreement, NUGL agreed to issue convertible notes worth $400,000 in several tranches. The collaboration represents a step closer to a proposed merger with Kaya, which is “an opportunity for further expansion and diversification internationally,” the company said back then.

“We have slowly been introducing Kaya to the NUGL community with video, live interviews, and written articles in our digital magazine,” Ryan Bartlette, COO of NUGL disclosed. “We feel it is essential that Kaya is introduced organically to our community and our investors. Kaya is an amazing company that has built a fantastic brand with an even more incredible team, and we want our audience to hear Kaya’s story first-hand through NUGL’s media outlets.”

The merger is expected to close in the coming weeks. The new combined company will utilize multiple markets, retail locations, technologies and distribution facilities, paired with solid backing and options to operate in numerous countries.

In addition, Kaya is in the process of opening its 4th retail location in Montego Bay.

Based in Jamaica, Kaya Group runs a licensed cultivation facility, a processing facility, three retail dispensaries and has conditional licenses to transport and operate therapeutic wellness spas.

“We are very excited to be able to build out our footprint in countries like Cayman, Barbados, and the Bahamas in 2022 as more Caribbean countries decriminalize or legalize ganja,” Bali Vaswani, chairman and CEO of the Kaya Group, commented.

Price Action

NUGL’s shares traded 82.07% higher at $0.0670 per share at the time of writing Wednesday morning.

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