- Health and wellness CBD-based probiotics distributor HempFusion Wellness, Inc. recently announced an agreement to acquire CBD brand pioneer Apothecanna’s holding company
- The deal will give HempFusion an additional 1,800 retail outlets for its brand, notably in CVS stores, to supplement the 4,000 retail locations HempFusion already uses in all 50 states
- Apothecanna’s sales revenues during 2020 were more than $4 million — double HempFusion’s historical revenue
- HempFusion also recently announced that a multi-billion-dollar customer in Dubai, United Arab Emirates, has revived its product purchases after more than a year’s pause in international sales during the pandemic
Health and wellness supplement innovator HempFusion Wellness (TSX: CBD.U) (OTC: CBDHF) (FWB: 8OO) is expanding its footprint in retail outlets while celebrating the revival of international sales for its cannabidiol (“CBD”) lines.
HempFusion has established itself as a scientifically formulated probiotic product retailer that relies on hemp to help specific consumer demographics achieve total gut health support and skin care. On May 17, the company announced it has entered a purchase agreement that will allow it to acquire 100 percent interest in APCNA Holdings LLC, the holdings company that owns the Apothecanna CBD line (https://cnw.fm/069pg).
Apothecanna is a CBD brand that is distributed in 1,800 stores nationwide through CVS and 7th Sense outlets, as well as others. The opportunity for HempFusion’s brand to increase its distribution by nearly 2,000 stores is augmented by Apothecanna’s strategic business relationship that gives it significant market share in the Canadian topicals space.
Apothecanna pioneered cannabis-powered body care and topicals and was the first topicals brand to expand nationally and obtain a federal trademark, according to the news release. Last year it had revenues of over $4 million, which is double HempFusion’s historical revenue and the company has plans to continue expanding during 2021.
“We are incredibly excited to enter into this agreement with Apothecanna, which, on closing, will have an immediate impact on HempFusion’s revenue while significantly bolstering our distribution and eCommerce platforms,” HempFusion cofounder and CEO Jason Mitchell, N.D., stated in the announcement. “We look forward to working to close the transaction as soon as possible.”
Ecommerce accounts for about 50 percent Apothecanna’s revenues, driving more than 17,000 average monthly sessions, and nearly $2 million in gross sales per year with a 76 percent gross margin.
On May 12, HempFusion also announced a recent purchase order for more than $200,000 of its branded products signals the revival of international sales following the difficulties posed by the COVID pandemic for foreign transactions during the past year (https://cnw.fm/4K7JS).
The unnamed multi-billion-dollar distribution company that placed the purchase order has not ordered anything from HempFusion in over a year. Because of the two companies’ historical relationship over most of the last decade, HempFusion had expected the other company, which is based in Dubai, to place orders for $800,000 worth of product in 2020 and $1 million worth of product this year. So HempFusion is “excited to see this early indication that business on a global scale is starting to move in the right direction,” HempFusion Head of International Development Patrick Bucaro stated in the announcement.
HempFusion has over a year of working capital and no plans for further financings at this time. Prior to establishing the acquisition agreement with APCNA Holdings, the company stated its products are sold in about 4,000 retail locations in all 50 U.S. states utilizing 45 brokers and sales representatives in the natural products industry and another 55 in the doctor/practitioner market, conventional food, drug, mass and convenience (“FDMC”) market and international markets.
HempFusion is also listed in Canada on the Toronto Securities Exchange (“TSX”) and has expectations of entering India, Ireland, and the United Kingdom in the near future.
For more information, visit the company’s website at www.HempFusion.com/corporate-information.
NOTE TO INVESTORS: The latest news and updates relating to HempFusion are available in the company’s newsroom at https://cnw.fm/CBDHF
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