Level Brands Inc (NYSEAMERICAN:LEVB) has added Cure Based Development, LLC to its portfolio. The company recently announced that it has signed a merger agreement with the CBD-based company in a transaction settled in Level Brand’s common stock. Cure Based Development is the company behind the popular consumer cannabidiol (CBD) brand cbdMD.
Mergers have become a common trend in the cannabis sector as notably big companies are either acquiring stake in well-performing companies or acquiring them completely. As the cannabis space becomes increasingly competitive, forming alliances with companies on the ground offers a competitive advantage.
For level Brand’s agreement to be approved, it must first pass some regulatory requirements including the 2018 Farm Bill and a number of federal policies. Cure Based Development is among the rapidly growing cannabis companies established a year ago. Barely a year since it began reporting its earnings the company has generated tidy revenue of $3.2 million as of August 31. The company’s October 2018 sales were in excess of a million dollars.
The company currently manufactures tinctures, topical, bath bombs, oils, and pet products, and has a market presence in over 40 states.
Level Brands’ Chairman and CEO Martin A. Sumichrats, believes that when President Trump assents to the 2018 Farm Bill his company will have big future opportunities. “With the passage of the 2018 Farm Bill, CBD will no longer be listed as a Schedule 1 controlled substance which we believe will open the access to national retailers for CBD consumer products. We believe that the next three to five years will produce a few leading CBD brands, and our goal is to be the leader in the space,” said Sumichrats.
Upon completion of the acquisition process, Cure Based Development will continue to operate but as a wholly-owned Level Brands entity. Level Brands will retain the company’s CEO and President under the same respective capacities.