TORONTO — Cannabis company Flora Growth Corp. has acquired Miami-based JustCBD in a cash and stock deal.
Announced Feb. 28, the deal includes $16 million in cash and $9.5 million in privately issued Flora common shares to the companies that own and operate JustCBD, Just Brands and High Roller Private Label, Hemp Industry Daily reported. Hussein Rakine, JustCBD’s CEO, will be a part of Flora Growth’s expansion strategy in the United States.
The acquisition will strengthen Flora Growth’s foothold in the United States CBD-products market and give the company an “incredible opportunity to leverage our economically advantaged cultivation to support the expansion of the JustCBD brand in the global market,” Toronto-based Flora Growth CEO Luis Merchan said, according to Hemp Industry Daily.
JustCBD has more than 300,000 customers in its direct-to-consumer business, MJBizDaily reported, and it had revenue of $28 million in its 2020 fiscal year. The acquisition opens the door for synergies with Flora Growth’s existing brands that include beverage, food and skin care products, the website said.
Flora Growth also is considering expansion into Colombia, Germany and Mexico, three countries that permit the sale of CBD products, Hemp Industry Daily reported, and plans to leverage the CBD it grows in Cosechemos, Colombia, to lower costs for JustCBD products such as edibles, pet products, tinctures and topicals.
Toronto-based Flora Growth four months ago arranged a licensing agreement with Tonino Lamborghini to sell CBD-infused beverages in Colombia and North America, Hemp Industry Daily reported. Tonino Lamborghini is an Italian luxury lifestyle brand with food and beverage interests. Flora Growth also bought Vessel Brand, a vape manufacturer in California, in November in a $30 million cash-and-stock deal.
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