California-based CV Sciences Inc. (OTCQB: CVSI) has acquired Polish plant-based vegan food company Cultured Foods. CV Sciences said in a statement that the acquisition was structured as an equity purchase, where it will operate Cultured Foods as its wholly owned subsidiary.
CEO Joseph Dowling hinted at the acquisition in the company’s most recent earnings call. He stated that his goal for CV Sciences was to become a global health and wellness company that isn’t limited to CBD products. That includes exploring opportunities with non-CBD nutraceuticals and other plant-based food products.
CV Sciences said that the total consideration for the purchase was up to $535,000, with a cash payment of $175,000 and 7,074,270 shares of CV Sciences’ common stock, having a value of $250,000. In addition, there is a potential payment of up to $110,000 in the form of an earn-out if the business of Cultured Foods meets certain performance thresholds during the first year after the closing.
“Our immediate plan is to leverage our B2B distribution network and bring convenient and sustainable plant-based foods into the U.S. natural product channel while working with Cultured Foods to grow their business in the European market,” Dowling said.
The global vegan food market is experiencing a boom right now, with analysts estimating that it will quintuple by by 2030, Dowling noted.
“In addition, we plan to leverage the Cultured Foods infrastructure to introduce select products from our flagship brand PlusCBD across all of Europe as laws allow, providing for significant expansion and opportunity to grow our company mindshare,” he added.
According to the statement, Cultured Foods produces a variety of curated plant-based products that are sold in 15 different European countries.
The acquisition creates an opportunity for the importation of these specialty foods to the U.S. and establishes a European base of operations for the sale and distribution of CV Sciences’ PlusCBD products, opening doors to numerous new retail and distributor partners.