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Arizona CBD Company Being Bought for $13.7 Million

CBD AZ

Cannabis company iAnthus announced its subsidiary has entered into a letter of intent to acquire the Arizona-based brand CBD For Life.

CBD For Life¬†was launched in Arizona in February of 2016. The brand’s CBD-infused pain management and beauty products have been featured in a wide range of online and print publications including Forbes, Shape,¬†Marie Claire, Women’s Health, Cosmopolitan and Allure.

“We’re excited to bring CBD For Life into the iAnthus family‚ÄĒour CBD brand will provide iAnthus with even greater reach and a wider consumer base, particularly in states that have yet to implement full-scale cannabis programs,” said¬†Beth Stavola, Co-Founder of CBD For Life.

The company’s products are available directly to consumers online and CBD For Life is currently distributing to 750 retail locations and actively on-boarding approximately 25 new locations per week with a dedicated sales channel working with national retailers.

iAnthus expects to acquire 100% of the equity interests in CBD For Life in return for 2,529,863 common shares of iAnthus. Based on a fixed share price of US$5.41 (the closing price of ITHUF shares on the OTCQX as of March 15, 2019), the stock consideration equates to US$13.7 million. At the closing of the transaction, iAnthus also expects to repay the outstanding debt and related accrued interest of CBD For Life in the amount of approximately US$2.0 million in cash.

According to industry experts, retail sales of CBD consumer products are estimated to have been between US$600 million and US$2 billion in 2018. As a growing number of CBD brands and product types become increasable available through diverse retail channels, the CBD market is projected to generate US$16 billion in retail sales by 2025.



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