DENVER – CBD health and wellness company HempFusion Wellness Inc. has completed its previously announced acquisition of Apothecanna, acquiring 100% of the interests in the company for the initial consideration of US$15 million.
“With the recent Sagely Naturals acquisition and now closing of the Apothecanna acquisition, HempFusion is in its strongest position to date,” said HempFusion CEO Jason Mitchell. “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 $12 million.”
- Apothecanna had revenue of over $3.8 million in 2020, which now triples HempFusion’s historical proforma revenue to approximately $12 million with significant expansion planned for 2021 and beyond, making it immediately accretive to the company.
- Immediate distribution to an additional 1,800 stores, including CVS, materially increasing HempFusion’s retail distribution footprint.
- In addition to FDM and e-commerce, the transaction provides added distribution channels, increasing HempFusion’s five channel strategy to six channels and bolstering topical product distribution sales.
- Robust eCommerce platform drives over 17,000 average monthly sessions, and nearly $2.0 million in gross sales per year with 76% gross margin historically.
- Product efficiencies across topicals line while providing a near term opportunity for expansion into ingestible products supported by HempFusion’s proprietary formulations.
- HempFusion’s substantial investment into regulatory compliance will help solidify Apothecanna’s leadership position in the CBD industry.
Mitchell said HempFusion is looking 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 Apothecanna’s existing distribution points.
With a strong focus on research and development, HempFusion has an additional 30 products under development
HempFusion distributes its family of brands – including HempFusion, Probulin Probiotics, Biome Research, and HF Labs – to approximately 4,000 retail locations across all U.S. states and select international locations.