Charlotte’s Web Expands Its Retail Footprint With Acquisition of Abacus Health Products

Charlotte’s Web Holdings ( OTC: CWBHF) revealed Monday that it is obtaining fellow cannabidiol (CBD) products maker Abacus Health Products in an all-stock offer. Abacus shareholders will get 0.85 shares of Charlotte’s Web stock for each Abacus share they own. The offer values Abacus at around 99 million Canadian dollars.

Abacus Health offers non-prescription topical items which contain active pharmaceutical ingredients and hemp extract. Combined, the two business expect to account for 34.7%of the U.S. cannabidiol (CBD) market in the food/drug/mass channel.

Charlotte’s Web items are presently in 11,000 retailers across the country while Abacus Health has an existence in 12,000 locations. Accounting for overlap, the post-merger company will now have its items brought in 15,000 places. In addition, Abacus Health has access to 16,5000 health-care practitioners.

” Since most of Abacus’s products are positioned in nearby categories, our combined circulation reach has restricted shelf overlap,” keeps in mind Deanie Elsner, CEO of Charlotte’s Web. “Together we are the most developed CBD company across every channel and sector and placed to accelerate our growth and extend our market share.”

The boards of directors of both business have actually approved the deal, but it still needs the approval of Abacus Health shareholders. The companies anticipate that the offer will close during the 2nd quarter.

Over the past 12 months, the stock has nosedived 82%right along with other cannabis stocks

David Jagielski has no position in any of the stocks mentioned. The Motley Fool recommends Charlotte’s Web. The Motley Fool has a disclosure policy.”> David Jagielski has no
position in any of the stocks pointed out. The Motley Fool recommends Charlotte’s Web.

The Motley Fool has a disclosure policy“>.