HempFusion Closes Acquisition of Apothecanna

CANNANNEW REPORT

DENVER–(BUSINESS WIRE)–$CBD.U #Apothecanna–HempFusion Wellness Inc. (TSX:CBD.U) (OTCQX:CBDHF) (FWB:8OO) (“HempFusion” or the “Company”), a leading health and wellness Company offering premium probiotic supplements and products containing CBD, is pleased to announce that it has completed its previously announced acquisition of APCNA Holdings LLC (“Apothecanna”) (the “Transaction”). Transaction Highlights: Apothecanna had revenue of over $3.8 million in 2020, which now triples HempFusion’s historical proforma revenue to ~$12 million with significant expansion planned for 2021 and beyond, making it immediately accretive to the Company. Immediate distribution to an additional 1,800 stores, including CVS, materially increasing HempFusion’s retail distribution footprint. In addition to FDM and e-commerce, the Transaction provides added distribution channels, increasing HempFusion’s 5 channel strategy to 6 channels and bolstering topical product distribution sales. Robust eCommerce platform drives over 17,000 average monthly sessions, and nearly $2.0 million in gross sales per year with 76% gross margin historically. Product efficiencies across topicals line while providing a near term opportunity for expansion into ingestible products supported by HempFusion’s proprietary formulations. HempFusion’s substantial investment into regulatory compliance will help solidify Apothecanna’s leadership position in the CBD industry. “With the recent Sagely Naturals acquisition and now closing of the Apothecanna acquisition, HempFusion is in its strongest position to date. Not only have we significantly increased our distribution footprint and product offerings, based on a 2020 proforma revenue basis of all entities combined, the acquisitions bring our historical revenue to nearly $12 million USD,” commented Jason Mitchell, N.D., Chief Executive Officer of HempFusion. “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,” continued Dr. Mitchell. The Transaction was completed pursuant to the terms of the unit purchase agreement…

Excerpt only …
READ MORE BELOW
Source : HempFusion Closes Acquisition of Apothecanna

reposted by Cannabis News World

This site uses Akismet to reduce spam. Learn how your comment data is processed.