Consumer wellness specialist CV Sciences has entered into a definitive agreement to acquire Extract Labs.
The B2B and B2C manufacturer and distributor of cannabinoid products will boost CV Science's nutraceutical offering, while also enhancing its supplement manufacturing capabilities.
Extract Labs specialises in the production of cannabinoid-infused gummies topicals and tinctures, and is able be flexible in its operations through its low to large minimum order quantity production runs.
The company is also GMP-certified and FDA-registered.
CV Sciences will acquire Extract Labs for $400,000 at closing, with Extract being eligible to receive up to $600,000 of additional shares in CV Sciences' common stocks.
This is dependent on if Extract Labs can reach certain revenue targets within the two year period following the closing date.
According to CV Sciences, the acquisition should close during the first quarter of 2025.
CEO of CV Sciences, Joseph Dowling, commented: "The acquisition of Extract Labs is expected to increase our revenue and customer base, allow us to leverage our key assets, optimise operations and processes and drive long-term growth and shareholder value. Extract Labs is a stand-alone profitable business and our plan is to increase its existing revenue base and further leverage its existing capacity,"
"In addition, we are planning to in-source the manufacturing of select +PlusCBD branded products providing an opportunity for meaningful cost savings. Extract Labs manufacturing capability will provide us with greater control over our supply chain and accelerate our new product development cycle."