Charlotte's Web Expands Its Retail Footprint With Acquisition of Abacus Health Products
Charlotte's Web Holdings (OTC: CWBHF) announced Monday that it is acquiring fellow cannabidiol (CBD) products maker Abacus Health Products in an all-stock deal. Abacus shareholders will receive 0.85 shares of Charlotte's Web stock for each Abacus share they own. The deal values Abacus at approximately 99 million Canadian dollars.
Abacus Health sells over-the-counter topical products that contain active pharmaceutical ingredients and hemp extract. Combined, the two companies expect to account for 34.7% of the U.S. cannabidiol (CBD) market in the food/drug/mass channel.
Charlotte's Web products are currently in 11,000 retailers across the country while Abacus Health has a presence in 12,000 locations. Accounting for overlap, the post-merger company will now have its products carried in 15,000 locations. In addition, Abacus Health has access to 16,5000 health-care practitioners.
Source Fool.com
