(A version of this story first appeared at Hemp Industry Daily.)
Creso Pharma said it is buying Colorado-based CBD maker Sierra Sage Herbs in an all-stock deal worth $21 million, positioning the Australian cannabis producer to enter the U.S. market.
The $21 million deal also includes the potential for future stock payouts in 2022 and 2023 if Sierra Sage Herbs hits certain revenue targets.
Sierra Sage Herbs founder and CEO Jodi Scott will become Creso Pharma’s president of U.S. operations.
Scott’s Colorado company manufactures a range of wellness products, including some with CBD and some without.
Sierra Sage Herbs owns the Green Goo line of hemp-derived CBD salves and the Southern Butter line of non-CBD sexual-wellness products.
It has distribution in more than 110,000 outlets across the United States, including Walmart and CVS Pharmacy locations.
“The U.S. CBD landscape is quite fragmented, and there’s an opportunity there,” Creso Pharma CEO Will Lay told investors during a YouTube livestream about the acquisition.
Creso Pharma also told investors in a presentation that the acquisition gives the company a “platform to rapidly enter U.S. THC markets upon any potential regulatory changes.”
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In addition to Australia and the United States, Creso Pharma has operations in Canada, Colombia, Pakistan, South Africa, Sri Lanka, Switzerland and Uruguay.
The company trades on the Australian Stock Exchange as CPH.