Creso Pharma Limited (ASX:CPH) announced last week it intends acquiring Colorado based natural body care company, Sierra Sage Herbs, LLC.
Creso says the acquisition will provide it a foothold in the USA’s CBD market through SSH’s existing 90,000 points of sale with major retailers and more than 150,000 direct to consumer relationships – and there’s more to come with Sierra Sage Herbs anticipating it will add an additional 20,000 points of sale with key retailers in the months ahead.
“We intend to aggressively leverage these relationships and the group’s existing customer base by introducing them to Creso Pharma’s existing product suite for human health, animal health and sports and recovery,” said Creso CEO and Managing Director William Lay.
The US CBD market is expected to grow to US$12 billion in value by 2026 according to Brightfield Group.
Sierra Sage Herbs was founded in 2008 by Jodi, Kathleen and Jennifer Scott; focusing on first aid and body care products primarily under the Green Goo brand. In 2020, the company introduced a new range of CBD (cannabidiol) based products under the ‘Good Goo’ brand.
The acquisition remains subject to a number of conditions, including Creso shareholder approval. The company expects to hold a shareholders’ meeting to approve the transaction in or around late March 2022, with closing to occur soon thereafter assuming shareholder approval.
“We are thrilled for this next phase in our journey as part of the Creso family and look forward to continuing our tradition of developing high-quality, non-toxic, incredibly effective products that our customers love, while continuing to preserve our mission of spreading goodness globally,” said Sierra Sage Herbs CEO and co-founder Jodi Scott.
Creso also has a foothold across the border – it formally entered the Canadian market by acquiring Nova Scotia based Medical Cannabis growing operation Mernova in February 2018.
Creso develops products in five key categories: therapeutics, nutraceuticals, animal health, lifestyle and topicals. It has also stepped beyond cannabis with the acquisition of Canada’s Halucenex Life Sciences Inc., which focuses on psilocybin (mushrooms). Last month Halucenex announced it had lodged Clinical Trial Authorisation with Health Canada for a phase II clinical trial to test efficacy of psilocybin on treatment- resistant Post Traumatic Stress Disorder (PTSD).