CanaFarma Hemp Products Corp (CSE:CNFA) (OTCMKTS:CNFHF) (FRA:4K9) has signed a memorandum of understanding (MOU) to acquire Vertical Wellness Inc, a leader in the branded health and wellness space.
The company said that the Vertical Wellness management team, including CEO J Smoke Wallin, will run the combined business and intends to keep the Vertical Wellness name.
CanaFarma said the combined company is anticipated to have a market capitalization of about $50 million.
READ: CanaFarma announces tie-up with Dutch pharma group to develop new approaches to deliver hemp-based cannabinoids
After going public in March 2020 just as the COVID-19 pandemic hit, CanaFarma noted that it had a successful listing on the Canadian Securities Exchange, trading up to about $1.50 per share with a market capitalization of more than $200 million.
"This is a platform for Vertical Wellness to fulfill its vision,” Wallin said in a statement. “To launch a portfolio of brands along a vast array of categories and segments requires resources, and the CanaFarma deal enables us to attract those resources at a scale we need. It's a great combination because we can pursue our goal to become the preeminent brand company in the cannabinoid-derived health and wellness space."
Vitaly Fargesen, senior vice president for strategic planning at CanaFarma added: "CanaFarma was founded with the express intention to be a large-scale brand company in the health and wellness space. Since early 2021, we have looked for the right opportunity to accelerate our mission through a business combination. Smoke and his team at Vertical Wellness are exactly what we were looking for and our investor base could not be more excited."
New York-based CanaFarma is a full-service company operating in the hemp industry offering a full range of hemp-related products and services to the consumer wellness market.
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