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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.
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.
The acquisition creates an opportunity for theimportation 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.
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.
CV Sciences’ shares traded 6.2657% lower at $0.0374 per share at the time of writing on Tuesday
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CV Sciences announced on Tuesday that it has consummated its purchase of Cultured Foods, a leading manufacturer and distributor of alternative plant-based vegan foods. The total consideration for the acquisition of Cultured Foods is up to $535,000.The acquisition creates an opportunity for the importation of Cultured 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. Read More
