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Health and wellness CBD company HempFusion Wellness Inc. (TSX:CBD) (OTCQX:CBDHF) (FWB: 8OO) has closed its previously announced acquisition of APCNA Holdings LLC, which is doing business as Apothecanna.
The move comes just months after the purchase of CBD brand Sagely Naturals in a $25 million stock and cash deal.
Transaction Details: Under the terms of the agreement between the Denver-based company, Apothecanna, all holders of Apothecanna interests, and their representative Jeff Henretig, HempFusion purchased Apothecanna for an initial consideration of $15 million.
The sum includes $13.87 million paid by the issuance of some 11.63 million HempFusion’s common shares at $1.19 per share and $1.125 million, also in shares, that will be released in 18 months following the closing date of the transaction.
The company also agreed to pay an additional $10 million to the seller in cash, its common shares, or a combination of both once Apothecanna achieves particular revenue milestones in one year after the finalization of the acquisition.
What It Means For HempFusion: The acquisition of Apothecanna triples the company’s historical proforma revenue to approximately $12 million and boosts its retail footprint by allowing immediate distribution to an additional 1,800 stores.
Moreover, the eCommerce platform propels over 17,000 average monthly sessions and almost $2 million in gross sales annually.
“With the recent Sagely Naturals acquisition and now closing of the Apothecanna acquisition, HempFusion is in its strongest position to date,“ Jason Mitchell, N.D., CEO of HempFusion, said Tuesday. “We look forward to benefiting from the Sagely Naturals and Apothecanna distribution footprints and products, which have been known for their strong topical products, and exploring opportunities to introduce HempFusion’s premium CBD ingestibles throughout their existing distribution points.”
The company also confirmed that Ian deQueiroz resigned as a director.
Photo: Courtesy of HempFusion Wellness Inc.
