Recent CBD / Cannabis Acquisitions (OTC: $SIML) (TSX: $WEED.TO) (NYSE: $CGC) (CSE: $CRFT.C) (CSE: $IAN.C) (OTCQX: $ITHUF)
Point Roberts WA, Delta BC - July 1, 2019 (Investorideas.com Newswire) Investorideas.com, a leading investor news resource covering hemp and cannabis stocks releases a multi-media snapshot reporting on recent acquisitions in the CBD cannabis space.
Viridian's Deal Tracker recently noted, "Acquisitions of companies in the hemp sector accelerate worldwide as industrial and consumer hemp/CBD markets develop."
Driving the acquisition flurry; the collective market for CBD sales is expected to exceed $20 billion in the United States by 2024, according to BDS Analytics and Arcview Market Research.
Aiming to capitalize on this, Simlatus Corporation (OTC PINK:SIML), a holding company focused on opportunities in the cannabis space just announced that the Company is cleaning up corporately to be better positioned for acquisitions in the future.
From the news - "During the past several months the Company has retired and returned to treasury $2.7M in Convertible Debt using its cash reserves to quarantine toxic conversions, stock dilution and preserve its equity.
Continued: Richard Hylen, Chairman and CEO stated "Our shareholders and management team have been on an impressive run ever since the company expanded its footprint into the cannabis sector with our most recent acquisition of Proscere Bioscience. With this acquisition, the company gained access to a cold-water CBD extraction Technology that presents an exciting opportunity on revenue generation. With the acquisition, the company has gained access to a valuable asset capable of strengthening its revenue base, with a current $2.8M in its first purchase order, and commitments of $275M over the next 5 years. The company has already set sights on Canada, USA, and Europe as it embarks on an aggressive commercialization drive for the cold-water CBD extraction systems."
Cannabis leader, Canopy Growth Corporation (TSX:WEED) (NYSE:CGC) is also completing an acquisition in extraction technology, announcing on June 26th that it has completed a transaction to acquire Saskatoon-based bio-product extractor KeyLeaf Life Sciences, related entities and intellectual property. "Canopy Growth has been working closely with KeyLeaf - formerly known as POS Bio-Sciences - as a trusted partner building out extraction processes and technology for the past year as it refines its scale extraction model for Canadian and global markets. As previously disclosed, Canopy Growth assumed control of KeyLeaf for accounting purposes in November 2018. As such, KeyLeaf's financial results were consolidated in the Company's fiscal 2019 financial statements. Through the transaction, the Company is acquiring a large-scale Canadian extraction facility as well as an extraction-related facility in the United States to support the Company's US CBD expansion."
Continued: "With over 45 years of experience in the canola, nutraceutical, cosmetic and bio-product industries, KeyLeaf is a recognized leading authority with significant intellectual property relating to plant-based extraction and ingredients. The extensive experience of KeyLeaf's chemists, engineers, and operators will remain within the organization to further refine the cannabinoid extraction process and will support Canopy Growth in the design, training, oversight, and implementation of additional extraction sites around the world."
Continued: "KeyLeaf has been working closely with Canopy Growth over the past year to retrofit its Saskatchewan facility to advance technology development and commercialization, in order to process hemp and cannabis biomass, and to conduct pre- and post-extraction processes. It is anticipated the facility, which is currently in the Health Canada licensing process, will be able to process up to 5,000 kg of input materials daily when operational."
Continued: "Canopy Growth intends to leverage this facility, along with other owned and partner extraction options, to process its over 5,000 acres of Canadian CBD hemp production, over 160 acres of outdoor cannabis production, as well as any extraction materials outputted from its over 4 million square feet of greenhouse growing operations. Then it's off to Smiths Falls to produce the best possible, IP-protected products out there!"
Looking at other recent acquisition news in the sector, Pasha Brands Ltd. (CSE: CRFT) (OTC:CRFTF), Canada's largest craft cannabis brands organization, announced on June 24th the acquisition of the CBD Therapeutics brand - a leading pre-legalization manufacturer and purveyor of cannabidiol (CBD) product based in British Columbia.
Continued: "Since its inception, CBD Therapeutics has supplied solvent-less full spectrum and isolated CBD formulations to the pre-legalization market throughout Canada, and increased access to both products and education. Since ceasing sales on October 17, 2018, CBD Therapeutics has been preparing to enter the regulated framework. Pasha has acquired all of the brand's trademarks, names and intellectual property and will re-launch the brand in the Canadian regulated market in the very near future."
Continued: "Joining Pasha Brands is yet another step forward in our mission of making CBD products more accessible," said James Whitehead, CEO of CBD Therapeutics. "Working with a collective of smart, like minded individuals and brands will help open opportunities for CBD Therapeutics and aid our growth. It already has."
Finalizing a previously announced acquisition, iAnthus Capital Holdings, Inc. (CSE: IAN, OTCQX: ITHUF), which owns, operates and partners with best-in-class regulated cannabis operations across the United States, announced on June 28th that its US subsidiary has closed the previously announced acquisition of CBD For Life, a top-ranked, national CBD brand in the US.
Continued: "CBD For Life has experienced accelerating revenue growth, from both existing customers and new account additions-representing approximately 50% quarter over quarter growth. CBD For Life's products are sold directly to consumers online at www.cbdforlife.us as well as in over 1,000 retail locations in 46 states, with a dedicated sales channel working with national retailers to on-board new locations weekly. CBD For Life's roster of national retailers include Urban Outfitters, Paper Source, Of a Kind, Olympia Sports, and Weis Markets, with others soon to be announced. Since announcing the Urban Outfitters relationship in mid-April 2019, the retailer has expanded the lineup of CBD For Life products it carries and the number of retail locations in which it offers them. CBD For Life's CBD-infused wellness, self-care, and beauty products have been featured in a wide range of cable, online, and print publications-including on NBC's Today Show and Telemundo47."
Continued: "According to industry experts, U.S. retail sales of CBD consumer products are estimated to have been between $600 million and $2 billion in 2018. As a growing number of CBD brands and product types become increasingly available through diverse retail channels, the CBD market is projected to generate $16 billion in U.S. retail sales by 2025. Research has shown that nearly 7% of the U.S. population in January of 2019 reported using CBD as a supplement, and that number is expected to grow to at least 10% by 2025."
"CBD sales have exploded in the past several months, but there's still a long way to go when it comes to consumer, retailer, and manufacturer knowledge," said Jessica Lukas, Vice President of Consumers Insights at BDS Analytics. "56 percent of adults 21+ do not know or are confused about the differences between THC and CBD."
As the consumer matures, so will the industry and the hunt for acquisitions will continue to find the best in breed within the sector.
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