iAnthus Closes Previously Announced Agreement to Acquire Nationally Distributed CBD Products Brand, CBD For Life for $10.4 Million

Published: July 2, 2019

iAnthus Closes Previously Announced Agreement to Acquire Nationally Distributed CBD Products Brand, CBD For Life for $10.4 Million

iAnthus Capital Holdings, Inc. announced that its U.S. subsidiary has closed the previously announced acquisition of CBD For Life, a national CBD brand in the U.S.

CBD For Life has experienced accelerating revenue growth, from both existing customers and new account additions—representing approximately 50% quarter over quarter growth. CBD For Life’s products are sold directly to consumers online at www.cbdforlife.us as well as in over 1,000 retail locations in 46 states, with a dedicated sales channel working with national retailers to on-board new locations weekly.

The company’s roster of national retailers include Urban Outfitters, Paper Source, Of a Kind, Olympia Sports, and Weis Markets, with others soon to be announced. Since announcing the Urban Outfitters relationship in mid-April 2019, the retailer has expanded the lineup of CBD For Life products it carries and the number of retail locations in which it offers them. CBD For Life’s CBD-infused wellness, self-care, and beauty products have been featured in a wide range of cable, online, and print publications—including on NBC’s Today Show and Telemundo47.

“I couldn’t be more thrilled to continue driving iAnthus’ national strategy with CBD For Life’s proven product line,” said Beth Stavola, Co-Founder of CBD For Life and Chief Strategy Officer of iAnthus. “I continue to believe in iAnthus’ long-term value creation following the completion of both this deal as well as the MPX transaction, and I look forward to the great future ahead for team iAnthus.”

CBD For Life’s currently available product lineup includes CBD-infused topicals, tinctures, and sprays geared toward health and wellness as well as lotions, creams, and hair products targeting beauty and skincare. CBD For Life plans to leverage the iAnthus platform to launch additional product lines in the second half of 2019, including a luxury skincare line and an adult product line. Furthermore, iAnthus plans to expand CBD For Life’s existing wholesale and retail platform to give more consumers access to its growing range of products—including international distribution planned for Q4 2019.

“CBD is one of the fastest growing segments of the consumer products industry,” said Hadley Ford, Chief Executive Officer of iAnthus. “We look forward to integrating CBD For Life’s award-winning products into the iAnthus platform, and we’re excited about the opportunity to reach a larger customer base nationwide via this acquisition. iAnthus continues to define its positioning amongst its multi-state operator peer group with the addition of national CBD platform.”

According to industry experts, U.S. retail sales of CBD consumer products are estimated to have been between $600 million and $2 billion in 2018. As a growing number of CBD brands and product types become increasingly available through diverse retail channels, the CBD market is projected to generate $16 billion in U.S. retail sales by 2025. Research has shown that nearly 7% of the U.S. population in January of 2019 reported using CBD as a supplement, and that number is expected to grow to at least 10% by 20251.

iAnthus acquired 100% of the assets of CBD For Life for $10.4 million, consisting of 2,452,681 common shares of iAnthus and repayment of the outstanding debt and certain liabilities of CBD For Life in the amount of approximately $2.4 million in cash. The common shares are subject to a Canadian restricted legend that expires on October 28, 2019.