HempFusion (TSX:CBD.U, OTCQX:CBDHF) Wellness Inc said it has completed its previously-announced acquisition of APCNA Holdings LLC, also known as Apothecanna.
Apothecanna had revenue of more than $3.8 million in 2020, which now triples HempFusion (TSX:CBD.U, OTCQX:CBDHF)’s historical proforma revenue to about $12 million, with significant expansion planned for 2021 and beyond.
“With the recent Sagely Naturals acquisition and now closing of the Apothecanna acquisition, HempFusion (TSX:CBD.U, OTCQX:CBDHF) 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 US$12 million,” HempFusion Wellness CEO Jason Mitchell said in a statement.
READ: HempFusion drives growth with its popular hemp-based CBD and probiotic products
“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,” Mitchell added.
The company also noted the acquisition provides immediate distribution to an additional 1,800 stores, including CVS, materially increasing HempFusion’s retail distribution footprint.
HempFusion acquired Apothecanna for an initial consideration of US$15 million, consisting of 11,633,622 HempFusion shares valued at about US$13.9 million, plus the issuance of another US$1.1 million in HempFusion stock to be released on the 18-month anniversary of the closing date.
Apothecanna’s owners are also entitled to receive up to an additional US$10 million in cash, HempFusion shares, or a combination of both at the election of HempFusion, should Apothecanna achieve certain revenue targets (with a minimum revenue threshold of US$6 million) within 12 months of the closing date.
As well, HempFusion announced that Ian deQueiroz has resigned as a company director effective July 30, 2021, but will continue in his role as HempFusion’s chief of brand strategy and partnerships.
HempFusion distributes its family of brands, including HempFusion, Probulin Probiotics, Biome Research, and HF Labs, to about 4,000 retail locations across all 50 states of the US and select international locations.
In addition, its wholly-owned subsidiary Probulin Probiotics is one of the fastest-growing probiotics companies in the US, according to data technology company SPINS. The subsidiary offers the unique MAKtrek 3-D system that ensures more probiotics arrive alive.
Contact Sean at sean@proactiveinvestors.com