CBD For Life was launched in Arizona in February of 2016. The brand’s CBD-infused pain management and beauty products have been featured in a wide range of online and print publications including Forbes, Shape, Marie Claire, Women’s Health, Cosmopolitan and Allure.
“We’re excited to bring CBD For Life into the iAnthus family—our CBD brand will provide iAnthus with even greater reach and a wider consumer base, particularly in states that have yet to implement full-scale cannabis programs,” said Beth Stavola, Co-Founder of CBD For Life.
The company’s products are available directly to consumers online and CBD For Life is currently distributing to 750 retail locations and actively on-boarding approximately 25 new locations per week with a dedicated sales channel working with national retailers.
iAnthus expects to acquire 100% of the equity interests in CBD For Life in return for 2,529,863 common shares of iAnthus. Based on a fixed share price of US$5.41 (the closing price of ITHUF shares on the OTCQX as of March 15, 2019), the stock consideration equates to US$13.7 million. At the closing of the transaction, iAnthus also expects to repay the outstanding debt and related accrued interest of CBD For Life in the amount of approximately US$2.0 million in cash.
According to industry experts, retail sales of CBD consumer products are estimated to have been between US$600 million and US$2 billion in 2018. As a growing number of CBD brands and product types become increasable available through diverse retail channels, the CBD market is projected to generate US$16 billion in retail sales by 2025.