CBD-infused beverage manufacturer BevCanna Enterprises has agreed to acquire Naturally Pure Therapy Products, a natural health product ecommerce retailer, for a total consideration of CAD 6 million ($4.58 million).
The acquisition will provide BevCanna with an ecommerce brand and platform to further expand and launch its own propriety hemp-based products directly into the global health and wellness market.
Pure Therapy is a direct-to-consumer ecommerce company that sells a range of natural health products such as nutraceutical and hemp-based cannabidiol products throughout North America and Western Europe.
As a result of the deal, BevCanna will gain access to Pure Therapy’s list of over 22,000 customers. The retailer reported unaudited 2019 gross revenues of CAD 4.77 million ($3.64 million).
Following the transaction, BevCanna estimates immediate growth in 2020 through new product integration and by accelerating the growth of the existing products line, utilising Pure Therapy’s ecommerce marketing expertise.
“The Pure Therapy business is a very synergistic addition to BevCanna,” said John Campbell, chief strategic officer at BevCanna.
He added: “The brand has a substantial existing customer base and a very powerful direct sales platform in which we can significantly leverage through increased marketing spend, and new product integration into an already proven model.
“Specifically, the acquisition will serve as a conduit to launch our hemp-based CBD beverages into the United States and other global markets. We’ll be able to immediately access their existing customer base and will accelerate the growth of the site by adding more high-margin value-added products and enhancing the branding direction.”
Under the terms of the deal, BevCanna has agreed to issue 30 million of its shares to the shareholders of Pure Therapy in exchange for all the issues and outstanding securities of Pure Therapy, in a deal worth CAD 6 million ($4.58 million).
Earlier this year, BevCanna acquired cannabis genetics firm Carmanah Craft and formed joint ventures with Calexo and Mota Ventures.
© FoodBev Media Ltd 2020