Shares North Carolina-based Level Brands Inc. rocketed 27% in premarket trade Tuesday, after the marketing and licensing company announced a deal to buy Cure Based Development LLC, which owns consumer cannabidiol (CBD) brand cbdMD in a stock deal valued at up to $119.85 million. The terms of the "two-step merger" deal includes 15,525,000 shares of Level Brands stock, which is valued at $59.9 million at Monday's closing price, and potentially up to an additional 15,525,000 shares if revenue targets of a total of $300 million are met within 60 months of the closing date. "With the passage of the 2018 Farm Bill, CBD will no longer be listed as a Schedule 1 controlled substance which we believe will open the access to national retailers for CBD consumer products," said Level Brands Chief Executive Martin Sumichrast. "We believe that the next three to five years will produce a few leading CBD brands, and our goal is to be the leader in the space." The stock has lost 11% year to date through Monday, while the ETFMG Alternative Harvest ETF has lost 11% and the S&P 500 has gained 4.4%.