Charlotte’s Web Finishes Acquisition of Canada’s Abacus Health

America’s leading integrated hemp-derived cannabidiol company Charlotte’s Web is welcoming another CBD brand Abacus Health in its consumer portfolio.

The company announced on June 11 the completion of the previously announced arrangement to acquire Abacus shares, having control over the ingestible and topical CBD products. Undeniably, Charlotte’s Web already has an influence over the CBD market in the United States but is considering an expanded offer of new products to its platform.

Starting July, multiple Abacus topical products will be available for purchase on Charlotte’s Web e-commerce website. This is an indication of product expansion, exploring the possibility of increasing sales from proven quality products made by the Abacus brand.

According to reports, all the outstanding proportionate voting shares were converted into Abacus shares prior to the acquisition agreement. This has led to the availability of the health products to Charlotte’s platform, with American consumers accessing Canadian CBD products.

“The addition of Abacus Health cements a market-leading position in both topical and ingestible products in the CBD category, representing approximately 33% market share of the U.S. CBD food/drug/mass retail channel,” said chief executive officer Deanie Elsner.

After closing on June 11, the American company received 90,287,520 common shares from the outstanding proportionate voting shares of 92,455,575. Following this acquisition, Abacus’ common share purchase will be listed under ABCS.WT on the Canadian Securities Exchange as Abacus Warrants.

The Canadian company warrants Charlotte’s Web of holding the common shares, subject to exercise in price to give effect to the exchange ratio.

Expanded Retail and Network

Given this acquisition, Charlotte’s Web is now the largest integrated hemp-derived company, distributing more than 21,000 retail locations. With the addition of topical and ingestible CBD product categories, the company now has added 5,000 retail doors and 1,100 new drug stores.

Joining Charlotte’s Web e-commerce platform are Abacus’ consumer brands CBD MEDIC™ and Harmony Hemp, two of the most exclusive Canadian brands today. Additionally, Charlotte’s Web can also access CBD CLINIC™ and cross-sell to respective distribution networks.

Prior to the acquisition, the two companies have been working hand-in-hand for almost five years. The companies gained a mutual respect for years, consulting product formulations, and innovations in the CBD market.

In fact, for Elsner, Abacus and Charlotte’s Web are like ‘two distinct puzzle pieces that now fit perfectly together as one.’ This goes to show how conducting business with each other has paved the way for a more profitable path, selling Abacus products to America.

Abacus’ full-spectrum hemp-derived CBD products are proven science-driven. This business philosophy impressed Charlotte’s Web and it mirrors the company’s commitment to science when it comes to retail products sold.

The agreement permits Charlotte’s Web to issue shares and for the Canadian company to grant full product distribution to more than 21,000 retailers. For Abacus this is a great opportunity to reach globally, those in need of botanicals healing power, which is possible by the enlarged network.

“Now that we are one company, we can deliver an attractive and trustworthy portfolio of products DTC and to a wide spectrum of retail customers,” added Elsner.

Upscaling CBD Market

The abrupt increase in the CBD market’s growth led to the stricter competition between brands, not just in Canada but also in the United States. Charlotte’s Web’s move in acquiring Canada’s Abacus health products is one way of opening more opportunities and to adapt to the dynamic CBD market.

To integrate Abacus products means offering more CBD product options for consumers, which is an excellent move to monopolize the science-backed CBD space. The American company is looking for more ways to reach global expansion and to be recognized in other countries, as a platform that offers high-quality hemp-derived CBD.

By delivering an attractive and trustworthy portfolio of products, Charlotte’s Web can reach a wide spectrum of customers all over America and the rest of the world. The market is expected to be worth $47 billion come 2027, which makes it a good start to invest in health and wellness products from the marijuana plant.

The significant increase in the demand also carved the path for CBD firms to go mainstream and to create significant developments in science. Through research and more science-derived products, Charlotte’s Web makes great steps forward, delivering low-cost and high-quality cannabis products.

Nonhigh-Inducing CBD Products

The slow yet progressive cannabis legalization in America signals a green light for more CBD products to be available for consumers. The nonhigh-inducing products in the form of CBD are common, from edibles, topicals, to supplements, and skincare.

Charlotte’s Web’s unique formula provides ease for consumers dealing with a number of health problems, particularly insomnia, anxiety, depression, muscle fatigue, and others. In addition to supplements, the company is offering pet products and calming oils.

Since Abacus is engaged in the development of over-the-counter cannabinoid-rich hemp extract, Charlotte’s Web can offer Canadian company’s formulations that are safe for consumption. The advanced science coupled with organic and natural ingredients leads to the heightened interest of consumers who are after excellent results.

In addition to claims of clinically tested cannabis products, Abacus products are registered in FDA, plus the manufacturing facility is also audited by the consumer’s safety body. The company’s quality products start with propriety hemp genetics, then manufactured into hemp-derived extracts. These products include a full spectrum of phytocannabinoids, terpenes, flavonoids, and other beneficial hemp compounds.

Abacus’ CEO Perry Antelman will reportedly join Charlotte’s Web as EVP, looking over the CBD topics. The company will bring Abacus’ products to its select distributors, brick and mortar retailers, and online facility, starting July 1, 2020.

Before the integration, the two companies will launch a 100-day Integration Plan to merge the brands and to plan how everything will roll out into the market.

In the words of Antelman, Charlotte’s Web will look into more opportunities to be more efficient and to improve in terms of providing a significant change in the CBD market.