M&A News: CV Sciences Acquires Extract Labs
CV Sciences, a consumer wellness company known for their hemp extracts and natural products, has announced a definitive purchase agreement with Extract Labs, a manufacturer and distributor of premium cannabinoid products. The deal is set to close in the first quarter of 2025, pending customary conditions.
The acquisition of Extract Labs, a GMP-certified, FDA-registered company, is expected to enhance CV Sciences’ production capabilities and boost sales of their high-quality cannabinoid products, which include gummies, topicals, and tinctures. These products are sold through various channels, from business-to-business to business-to-consumer.
Joseph Dowling, CEO of CV Sciences, expressed excitement about the acquisition, emphasizing the potential for increased revenue, expanded customer base, and operational efficiencies. By in-sourcing manufacturing and leveraging Extract Labs’ capabilities, CV Sciences aims to strengthen its supply chain, drive growth, and introduce new products more efficiently.
Specifics of the deal include a cash payment of $400,000 at closing, along with shares of CV Sciences’ common stock valued at $1,000,000. Additional shares of stock, up to $600,000, may be issued based on Extract Labs meeting certain revenue targets post-acquisition.
For more information about the acquisition, visit CV Sciences’ website. This strategic move reflects CV Sciences’ commitment to growth and innovation in the wellness industry.
