Nevada CBD manufacturer Leafceuticals is expanding into topicals and edibles with the $2.2 million acquisition of California’s Irie CBD products.
The acquisition gives Leafceuticals a processing plant in Oakland, California, for expanding its CBD line.
The agreement calls for Leafceuticals – a subsidiary of Las Vegas-based Freedom Leaf – to pay $400,000 cash and $1.8 million worth of stock to acquire Irie.
Leafceuticals currently makes hemp-derived CBD oils, vape products and pet chews.
But it doesn’t manufacture topicals or edibles, which will change with the Irie acquisition.
Freedom Leaf vice president Raymond Medeiros said Leafceuticals will continue extracting CBD from hemp in Nevada but will finish processing CBD into some products in California.
Freedom Leaf wants to expand its CBD footprint, he said.
“We are all about CBD,” Medeiros said. “We think CBD is a very valuable to consumers, and we think it’s a much larger market than the cannabis market.”
Leafceuticals will shift production of its Hempology CBD line to California, though there are no immediate plans to grow hemp in the Golden State or extract CBD there, Medeiros said.
Freedom Leaf trades on U.S. over-the-counter markets under the ticker symbol FRLF.
Kristen Nichols can be reached at [email protected]