iAnthus Expands Into CBD Space With $14M Acquisition
The U.S. subsidiary of iAnthus Capital Holdings Inc (OTC:ITHUF) announced Friday that it will acquire CBD For Life, a national brand of CBD products that is on a fast track of expansion in retail locations across the country.
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The value of the all-stock deal is estimated at $13.7 million, according to iAnthus.
The cannabis company will offer CBD For Life shareholders around 2.53 million shares. In addition, after the transaction is closed, iAnthus expects to repay CBD For Life's outstanding debt and accured interest of around $2 million.
Why It's Important
CBD is becoming an important sector in the U.S., helped by the recent legalization of hemp. It's estimated that the market could reach $16 billion in retail sales by 2025.
CBD For Life was founded in 2016 by Beth Stavola and Julie Winter. Stavola is now iAnthus' chief strategy officer.
The company's CBD products have been recognized by a wide range of online and print publications. The brand is available in 750 retail locations and online and is being adopted by around 25 new locations every week; the company has a dedicated sales channel for working with national retailers.
The acquisition of CBD For Life is subject to a number of conditions, including the parties entering into a defintive agreement, iAnthus said. The agreement is expected to be signed in the second quarter of 2019.
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