Colorado-based HempFusion to acquire Sagely Naturals CBD brand

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The cannabis company expands its reach through a multimillion-dollar acquisition

Expansion plans at major companies in the cannabis industry are becoming crucial, especially in order to be considered leaders in their respective areas and to obtain unparalleled profits. Earlier this week, CBD (cannabidiol) health and wellness company HempFusion Wellness Inc. announced that it had every interest in investing $25 million in stock and cash for the respective purchase of CBD brand Sagely Naturals. With this news, the two companies are entering into a merger agreement, whereby Sagely Naturals will now become a wholly-owned subsidiary of HempFusion.

Sagely Naturals is known to focus on wellness through CBD products and, being founded by a group of women, its growth has led it to become one of the most recognized brands today. Since the brand was founded six years ago, it has made its way onto the shelves of popular retailers, including Sprouts Farmers Market, CVS, Rite Aid, Nordstrom and others.

According to data shared by IRI, Sagely has undoubtedly excelled in the market, considered the number one leader in CBD topics with a market share of 23% in the pharmacy channel and 13.8% in the multi-store channel. Its popularity and product quality has reached such a point that even celebrities such as Zoe Saldana, Cameron Diaz and Molly Sims have claimed to be loyal consumers and investors of the brand.

As far as is known under this agreement, of the $25 million total, $23 million will be in company stock to be issued at a price of approximately $1.021 per share, while the remaining $2 million is in cash. Sagely Naturals’ co-chief executive officers will remain unchanged following the completion of this transaction, as both Kerrigan Behrens and Kaley Nichol will continue in their positions.