Charlotte’s Web to Double Retail Outlets with Acquisition of Abacus Health
An agreement released by Charlotte’s Web Holdings, Inc. says that their previous bid to purchase Abacus Health Products, Inc. for $99 million has been accepted. As reported in The Deep Dive, the boards of both companies, along with shareholders with 20% or more of Abacus shares approved the acquisition. If Abacus were to terminate the agreement prior to the close of the transaction, they would pay a penalty of $4 million. The agreement also protects Charlotte’s Web from Abacus seeking other offers.
The transaction, which is expected to be completed in the second quarter of this year, will add Abacus Health’s 12,000 retail channels to Charlotte Web’s current 11,000 retail channels. Additionally, Charlotte’s will benefit from the Abacus network of 16,500 medical practitioners. Charlotte’s Web cultivates, produces and distributes CBD products, and Abacus, based in Toronto, Canada, is in the business of developing over-the-counter, topical cannabinoid treatments.