Cellular Goods PLC (LSE:CBX) said the proposed acquisition of Cannaray Brands Ltd and Love CBD Health Ltd from Cannaray Limited has been terminated.
According to a statement from the UK-based wellness company, changes in the deal led the board to conclude it was not in the best interests of shareholders to proceed.
The company said it has been proactively reviewing its business, and its focus is on developing and expanding the company’s model and positioning itself for long-term growth.
Cellular Goods had announced in September it had signed a letter of intent for the potential acquisition of Cannaray Brands and Love CBD, which if completed would have constituted a reverse takeover.
The transaction was worth £14.2mln, of which £1mln would have been paid in cash and it would have resulted in the seller, Cannaray Limited, holding a 54% stake in the enlarged company.
Cannaray’s leading consumer brands, Cannaray CBD & Love CBD, are sold in the UK cannabidiol (CBD) wellness sector.