Yooma Wellness Inc (CSE:YOOM, OTC:LVVEF, AQSE:YOOM, FRA:7AI). said it has made “significant progress” since its IPO earlier this year, including acquisitions in the CBD and wellness space and a capital raise of up to US$17.1mln.
The Toronto-based group is in the early stages of implementing its plan to become vertically integrated in the marketing, distribution and sale of wellness products, including hemp seed oil and hemp-derived cannabinoid ingredients.
WATCH: Yooma Wellness follows London listing by snapping up Vitality CBD as their first acquisition
It recently snapped up Socati Corp., a US-based manufacturer and seller of premium-quality CBD ingredients and consumer products, UK and European wellness brands MYO Plant Nutrition, Blossom, What the Hemp and Hello Joya and UK distributor Vitality CBD.
It also signed non-binding letters of intent for several potential acquisitions.
Yooma added it is shifting its focus away from China and onto other markets where it has been experiencing significant growth, following an announcement that China's National Medical Products Administration added CBD to its "List of Prohibited Use Cosmetic Ingredients".
The announcement prompted online marketplaces, including those which Yooma had been working with, to restrict promotion and marketing efforts for CBD products, eliminating much of the progress Yooma had made in China to date.
In the three months to 30 June, revenue came in at US$2.1mln, with cost of sales of US$1.9mln. Net loss for the period was US$3.1mln.
"Our efforts during the second quarter laid the foundation for the buy-and-build strategy that we recently outlined to investors at the time of our UK financing and dual-listing - to buy and build companies globally, focused on increasing the company's top-line revenue, leveraging our integrated supply chain and expanding distribution for our existing portfolio,” said chairman Lorne Abony in a release.