Australian marijuana producer Creso Pharma Ltd. is the latest company entering the United States via a CBD maker.
Creso Pharma announced this week that it is buying Sierra Sage Herbs in an all-stock deal worth $21 million.
Based in Lyons, Colorado, Sierra Sage Herbs makes a range of wellness products including some with and without CBD. The company 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 nationwide, including Walmart and CVS Pharmacy locations.
The $21 million deal also includes the potential for future stock payouts in 2022 and 2023 if Sierra Sage Herbs hits certain revenue targets. CEO Jodi Scott will become Creso Pharma’s president of U.S. operations.
“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.
The company also told investors in a presentation that the acquisition gives it a “platform to rapidly enter U.S. THC markets upon any potential regulatory changes.”
Creso Pharma also said it will commence “immediate efforts to begin (working) on functional mushroom products” with Green Goo management.
Creso Pharma trades on the Australian Stock Exchange as CPH.
In addition to Australia and the United States, the company has operations in Canada, Colombia, Pakistan, South Africa, Switzerland, Sri Lanka and Uruguay.