CBD of Denver Inc. CBDD (CBDD) announced plans to expand into the German cannabis market.
The company wrote letters of intent to acquire a German-based CBD specialist, which will offer warehousing and logistics services in Germany as well as a full-service Health and Wellness CBD company based in Switzerland. These acquisitions will enable CBD of Denver to extend its reach throughout Europe.
Capitalizing on Germany's new cannabis laws, the company plans to enter the market by supporting the opening of limited-member Social Clubs in 2024. It will offer services such as grow facilities and licensed locations to assist these clubs, drawing on its experienced team's successful track record in operating similar establishments in Barcelona and Ibiza while navigating German and Swiss regulations, per a press release.
Integrating Wholesale Business, Targeting Margin Improvement & Sourcing Competitive CBD
CBD of Denver's wholesale business will be integrated into the operation and is witnessing revenue growth.
The company intends to improve the margins of its wholesale division as it continues to expand sales. To facilitate this effort, competitively priced CBD will be sourced from outside of Europe.
Furthermore, CBD of Denver intends to acquire branded products already distributed throughout Germany as part of this transaction. Specific details of the targets and closing documents will be disclosed after the deal is finalized, ensuring the company's position is not adversely affected.
The company will hold a shareholders' update call on June 14, 2023, at 4 pm ET. Shareholders can find call-in information on the company's website and submit questions as well.
Price action: On Tuesday afternoon, CBDD shares were $0.0004 per share, trading at 14.29% up.
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