Capitalizing On Plant-Based Trend: Cultured Foods Acquisition Allows This US Hemp Co. To Expand In Europe

CV Sciences, Inc. CVSI has consummated its purchase of Cultured Foods, a manufacturer and distributor of alternative plant-based vegan foods, the company announced Tuesday. 

What Happened

The total consideration for the acquisition of Cultured Foods is up to $535,000, consisting of:

• a cash payment made at the closing of $175,000;
• the delivery at the closing of 7,074,270 shares of CV Sciences’ common stock, having a value of $250,000 as priced at the three-day volume weighted average price (VWAP) of CV Sciences’ common stock; and
• the potential payment of up to $110,000 in the form of an earn-out if the business of Cultured Foods meets certain performance thresholds during the first year after the closing.

Why It Matters

The acquisition creates an opportunity for the importation of these specialty foods to the US and establishes a European base of operations for the sale and distribution of +PlusCBD products, opening doors to numerous new retail and distributor partners. 

Cultured Foods produces a variety of curated plant-based products, currently sold in 15 different European countries, with its base of operations in Warsaw, Poland. 

"We plan to leverage the Cultured Foods infrastructure to introduce select products from our flagship brand PlusCBD across all of Europe as laws allow, providing for significant expansion and opportunity to grow our company mindshare,” Joseph Dowling, the company's CEO said.

In addition, the collaboration helps accelerate CV Sciences’ transition to a more diverse global health and wellness company. 

The acquisition was structured as an equity purchase, where the company will operate Cultured Foods as its wholly-owned subsidiary.

CV Sciences currently operates as a consumer wellness company specializing in hemp extracts and other proven science-backed, natural ingredients and products.

What's Next

Dowling praised the move while shedding light on what's next.

"Our immediate plan is to leverage our B2B distribution network and bring convenient and sustainable plant-based foods into the US natural product channel while working with Cultured Foods to grow their business in the European market," Dowling said. "The global vegan food market is expected to grow 5 times by 2030 with millennials and flexitarians as the driving force behind soaring vegan food sales.”

Following the closing, Cultured Foods’ founder, Barbara McWhorter, will continue as general manager of the European manufacturing and distribution business.

The acquisition is expected to be accretive in its first year and contribute to scaling economics thereafter.

CVSI Price Action

CV Sciences' shares traded 6.2657% lower at $0.0374 per share at the time of writing on Tuesday

Missed the first wave of cannabis investments? Don't make that mistake again.
Experts believe cannabis stocks have found their floor and are now poised for unprecedented growth.
Join Benzinga PotProfits. Our in-house canna stock expert, Michael Berger, is on a mission to uncover the most promising cannabis stocks poised for growth, even in a dull market. He leaves no bud unturned to bring you the juiciest potential double-digit opportunities!
 Just this year, the PotProfits portfolio has seen smoking-hot gains like:

•  47.10% with $GTBIF
•  40.23% with $TCNNF
•  21.50% with $VFF

 But here's the kicker: Michael is about to release his next potential winners, and he's chomping at the bit to share these ticker symbols with you ASAP.

Don't miss out on the green rush!

morning.

Related News

• Hemp-Focused Wellness Company: Revenue Jumps To $4.1M, Gross Margin Peaks At 45.1%
• Publicly Traded Hemp-Focused Wellness Company Reports Q2 Results, Here Is What You Need To Know
• CV Sciences Inc Q1 Revenue Stagnates YoY, Here Is What You Need To Know