Medical Marijuana Inc. announced Thursday that it has signed an agreement to acquire Kannaway, a startup hemp products company that was recently valued at up to $243 million by a noted investment banking firm.
Financial terms of the deal were not disclosed.
The acquisition will likely rank as the largest M&A deal in the history of the medical cannabis and hemp industry, based on the valuation of Kannaway, which was founded less than a year ago.
“If I could have done a backflip, I would have,” Kannaway Chief Executive Officer Jeff Rogers told Marijuana Business Daily when asked about his reaction to the valuation, which was conducted ahead of the acquisition.
The deal is scheduled to close in the next 90 days.
Medical Marijuana Inc. – a San Diego, California-based company that trades on the over-the-counter markets under the symbol MJNA – owns a portfolio of companies that provide hemp and CBD-based products. It is purchasing 100% of Kannaway from General Hemp LLC, which invested seed money in Kannaway to get the company started last year.
Rogers said the deal gives Kannaway “enormous” leverage for expanding into international markets. It already has its products in all 50 U.S. states and territories, including Puerto Rico, and is eyeing markets in Mexico, the Philippines, Brazil, Spain, Korea.
Rogers added that Kannaway – also based in San Diego – is planning on establishing distribution hubs across the United States, with one in Dallas slated to open this weekend.