In one deal, CanaFarma Hemp, a New Jersey-based firm, announced it has signed a letter of intent to acquire Avitas Bio.
In a related deal, a company called Vertical Wellness, which has been marketing a line of CBD products branded with model and businesswoman Kathy Ireland’s name and image, is in the process of finalizing a merger with CanaFarm Hemp.
Mergers to bring manufacturing, branding capabilities under one roof
CanaFarma Hemp is publicly traded company based in Vancouver, BC. The company markets a line of tinctures and a brand of chewing gum and reportedly has a line of CBD chocolates in development.
The CanaFarma-Vertical Wellness merger was valued at $50 million when it was first announced in July. The state goal was to make it the “first house of CBD brands to be publicly traded.”
Avitas Bio is a marketer of herbal extracts aimed at various conditions such as migraine, menopause and joint discomfort. The company’s products include herbal extracts of Devil’s Claim (Harpagophytum procumbens), Feverfew (Tanacetum parthenium) and Gingko biloba.
Under the proposed new combination Avitas Bio will produce the CanaFarma chocolates in its New York production facility. The announced terms of the deal include a grant of 30 million common shares of CanaFarma to Avitas Bio in return for all of Avitas Bio’s shares.
“Avitas Bio has developed a series of products addressing today’s most pressing health and wellness challenges, and our platform is poised to take the company to the next level,” said Vertical Wellness CEO Smoke Wallin. Wallin also recently concluded a deal to launch a CBD infused beverage in cooperation with professional skateboarder Paul Rodriguez.