iAnthus Capital Holdings, Inc. (OTCMKTS:ITHUF) has announced that its U.S based subsidiary has entered an interim agreement for the acquisition of national CBD brand CBD For Life.
Growing Interest for CBD For Life from retailers
Following the enactment of the 2018 Farm Bill, the company has seen an influx of interest from various mainstream retailers in Q12019. CBD For Life currently offers its products online and the company is distributing to over 750 location.
The available product line includes beauty and skincare products as well as health and wellness products that are designed for beauty, skincare, and wellness. CBD For Life is planning to expand their retail and wholesale distribution through the partnership with iAnthus to offer consumers access to their products.
Hadley Ford, the CEO of iAnthus stated that developing robust CBD strategy is the main goal of cannabis companies to enhance competition at the national stage while at the same time exploring new markets. He added that with the acquisition of CBD For Life the company was well endowed to grow its markets share and take advantage of exposure to customers and patients across the nation.
Industry analysts estimate 2018 retails sales of CBD products to have ranged from $600 million to $2 billion. With the passing of the Farm Bill, there is a growing wave of CBD brands making the availability of products increasingly available and projections indicate by 2025 the industry will be worth $16 billion.
The acquisition will expand iAnthus’ market reach
CBD For Life co-founder, Beth Stavola, stated that they were delighted to be part of iAnthus as their CBD brand will offer iAnthus a wider consumer reach and base especially in states that are yet to implement cannabis programs.
iAnthus will acquire 100% of CBD For Life’s equity interest in return for approximately 2.53 million iAnthus common shares. The shares will be offered a $5.41 which was the closing share price as of 15 March 2019 and this will translate to around $13.7 million. At the closing of the agreement, iAnthus will be required to repay $2 million in accrued interest and outstanding debt to CBD For Life.