DENVER, Aug. 16, 2021 /PRNewswire/ -- Balanced
Health Botanicals™ ("BHB" or "The Brand"), one of the largest CBD
brands in the market, today announced it has been acquired by
Village Farms International, Inc. ("Village Farms" or "The
Company") (NASDAQ:VFF) (TSX:VFF), including its established
e-commerce platform, CBDistillery™. The transaction is valued
at US$75 million satisfied through
US$30 million in cash and common
shares of Village Farms' equal to US$45
million to the sellers of BHB.
Village Farms leverages decades of experience as a large-scale,
Controlled Environment Agriculture-based, vertically integrated
supplier for high-value, high-growth plant-based Consumer Packaged
Goods opportunities, with a strong foundation as a leading fresh
produce supplier to grocery and large-format retailers throughout
the US and Canada, and new
high-growth opportunities in the cannabis and CBD categories in
North America and selected markets
internationally.
"We are ecstatic to join forces with Village Farms, a leader in
the global cannabis and CBD industries," said Chase Terwilliger, Chief Executive Officer of
Balanced Health Botanicals. "Since 2016, our nimble team has worked
tirelessly to create not only a leading brand of which we are
extremely proud but also one that is truly making an impact in the
lives of consumers by providing everyday premium products.
We've been able to achieve and maintain a top-five market
share1 in the CBD market, while generating positive
cash flow. As part of the Village Farms organization, we will be
able to take the next steps in our growth strategy, with the
opportunity for prudent, return-focused investments, to further
expand our market share and drive efficiencies, with a focus on
continued profitability."
"Village Farms is a highly complementary match for Balanced
Health Botanicals, with a strong alignment of vision and values,
providing the opportunity for unparalleled collaboration, and a
shared objective to be the leader in every market in which we
participate. We remain steadfast in our commitment to our
retail partners and customers, and are confident this acquisition
will further strengthen our ability to meet their needs."
The acquisition of BHB will provide Village Farms
with immediate access to the US retail CBD market through The
Brand's well-established, profitable business, with top brand
awareness, an established E-commerce platform, established retail
channels and a growing customer base. It will also add significant
value to BHB's supply chain, including the potential to leverage
Village Farms' long-standing relationships as a produce supplier to
its grocery and large-format retailers in the US, as well as
through further investment in BHB's brand and expansion of its
leading e-commerce platform. The existing BHB leadership and
operational teams will be absorbed into the Village Farms Family
bringing their complementary capabilities and cannabis expertise to
significantly strengthen Village Farms' ability to achieve their
strategic objectives.
"Since US federal legalization in late 2018, hemp-derived CBD
products, as well as other cannabidiol-based products, have been
part of our comprehensive strategy focused on high-value,
high-growth plant-based consumer packaged goods opportunities in
cannabis," said Michael DeGiglio,
CEO, Village Farms International. "As a well-established,
profitable leader in the US retail CBD market, Balanced Health
Botanicals is the right opportunity, at the right time, to take our
next major step forward in anticipation of regulatory clarity that
will propel the growth of this nascent market. Its platform
provides us with another potential pathway to participate in the US
high-THC cannabis market, when permitted to do so, that could
enable us to more rapidly access the market, in advance of our
plans to convert our more than 5.5 million square feet of high-tech
greenhouse facilities in West
Texas – one of the most favourable environments for cannabis
cultivation in the continental US – for large-scale, low-cost
production of cannabis."
BHB develops and sells high-quality, CBD-based health and
wellness products. With an overriding focus on quality and
compliance, BHB has established a diverse portfolio of CBD and
other cannabinoid products, including ingestible, edible and
topical applications that are distributed via e-commerce and bricks
and mortar retail channels. CBDistillery™, is a top -five US CBD
brand1 top-ranked web site within the CBD category, with
more than 30,000 orders monthly and a significant repeat customer
base. Through its long-term partnerships, BHB has control of the
entire supply chain from seed-to-shelf, seamless sourcing,
manufacturing, and sale of high-quality end products across a wide
variety of forms and uses.
For more information on Balanced Health Botanicals and its
family of brands, please visit:
https://www.balancedhealthbotanicals.com/.
Advisors
Kronos Capital Partners Inc. acted as the financial advisors to
Balanced Health Botanicals. Greenberg Traurig, LLP and Garfinkle
Biderman LLP acted as legal counsel to Balanced Health
Botanicals.
About Balanced Health Botanicals
Balanced Health
Botanicals™ (BHB) is a family of hemp-derived CBD brands that
includes CBDistillery™ and BOTA™. Flagship brand CBDistillery™ was
founded in Denver in 2016 to pursue a rapidly growing and
predominantly untapped market. It has since evolved into one of the
largest CBD brands in the market, sold in retailers nationwide. The
all-new BOTA™ is a line of premium plant-powered skincare and
supplements that combines powerful natural botanicals with
hemp-derived CBD. BHB's mission is to provide the highest quality,
U.S. grown, hemp-derived CBD products at everyday premium pricing
and to be the premier CBD education resource. BHB has made
significant investments in its infrastructure, supply chain
capabilities, world-class manufacturing facilities, and product
portfolio to solidify itself as the leader of the
#CBDMOVEMENT™.
About Village Farms International, Inc.
Village Farms
leverages decades of experience as a large-scale, Controlled
Environment Agriculture-based, vertically integrated supplier for
high-value, high-growth plant-based Consumer Packaged Goods
opportunities, with a strong foundation as a leading fresh produce
supplier to grocery and large-format retailers throughout the US
and Canada, and new high-growth
opportunities in the cannabis and CBD categories in North America and selected markets
internationally.
In Canada, the Company's
wholly-owned Canadian subsidiary, Pure Sunfarms, is one of the
single largest cannabis operations in the world, the lowest-cost
greenhouse producer and one of the best-selling brands.
In the US, wholly-owned Balanced Health Botanicals is one of the
leading CBD brands and e-commerce platforms in the country.
Subject to compliance with all applicable US federal and state
laws, Village Farms plans to enter the US high-THC cannabis market
via multiple strategies, leveraging one of the largest greenhouse
operations in the country (more than 5.5 million square feet in
West Texas), as well as the
operational and product expertise gained through Pure Sunfarms'
cannabis success in Canada.
Internationally, Village Farms is targeting selected, nascent,
legal cannabis and CBD opportunities with significant medium- and
long-term potential, with an initial focus on the Asia-Pacific region and Europe.
1Brightfield Group: 2021 Mid-Year US CBD
Report.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/balanced-health-botanicals-is-acquired-by-village-farms-international-inc-301355789.html
SOURCE Balanced Health Botanicals