HempFusion Archives - Green Market Report

StaffMay 25, 2021

HempFusion Wellness Inc. (TSX:CBD.U) (OTC:CBDHF) is buying Sagely Enterprises, Inc., a leader in premium CBD products with mass distribution in more than 14,000 retailers nationwide. The deal is valued at $25 million and consists of $2 million in cash and $23 million in common shares of HempFusion at a price per share of roughly $1.021. In addition, the sellers may be entitled to receive an earnout payment of up to $5 million subject to Sagely hitting certain revenue targets within a year.

“Upon closing, the acquisition of Sagely Naturals immediately adds significant value to shareholders. By more than tripling our 2020 revenue (when combined with the closing of Apothecanna), expanding to over 15,000 stores, expanding our distribution strategy to six channels, combining some of the top executive talent in the industry, and bringing together over 75 incredible and best-selling SKUs, HempFusion is in its strongest position to date,” said Jason Mitchell, N.D., HempFusion’s Co-Founder and CEO. “We expect the combined proforma entity to achieve substantial growth over our historical financials and cement our leadership position in the CBD industry while setting the stage for tremendous growth in 2021 and 2022,” continued Dr. Mitchell.

Sagely was founded in 2015 by Kerrigan Behrens and Kaley Nichol and is the largest female-founded CBD wellness brand. Sagely Naturals maintains a strong presence in the top Drug retailers nationwide and is sold in key retailers such as CVS, Rite Aid, Albertsons, Sprouts, Nordstrom, and many other independent regional grocers and natural food stores. The company’s products are available in over 14,000 retail locations. Sagely Naturals has consistently maintained the number one position in CBD topicals, with 23% market share in the Drug channel and 13.8% market share in the Multiple Outlet channel (according to IRI data). Including ingestibles, Sagely Naturals is the #3 CBD brand and one of the only brands showing consistent growth in the all-time periods within the latest 52 weeks (according to IRI and MULO data). Out of the top 20 selling CBD SKUs in MULO, Sagely Naturals have five SKUs, with the Extra Strength Relief & Recovery Cream is the #1 selling SKU in Chain Drug.

“Allowing people to do more of what they love has always been at the heart of our mission at Sagely Naturals. HempFusion approaches the industry the right way and possesses the resources required to help us significantly scale our business, increase our market share, and expand beyond our stronghold in the United States to international jurisdictions,” said Kerrigan Behrens, Co-Founder and Co-CEO of Sagely Naturals. “Quality and consumer safety are of the utmost importance to our brand, and Dr. Jason Mitchell and his team have been market leaders in the CBD category in this regard. We are incredibly excited to be joining the HempFusion team,” added Kaley Nichol, Co-Founder and Co-CEO of Sagely Naturals.

Debra BorchardtJanuary 6, 2021

HempFusion Wellness Inc. completed its initial public offering (IPO) of 7,000,000 common shares at a price of $1.00 per share for gross proceeds of $7 million and 10,000,000 units of the company for gross proceeds of $10 million. The company will begin trading on the Toronto Stock Exchange today under the following symbols:

CBD.U – the Common Shares (including the Offered Shares, the Unit Shares (as described below) and the Warrant Shares (as described below));
CBD.WT.V – the Warrants; and
CBD.WT.U – the 2019 Warrants.

“We are incredibly excited to have completed our initial public offering and begin trading on the Toronto Stock Exchange,” commented Jason Mitchell N.D., HempFusion’s CEO. “The additional $17 million in capital adds to our healthy treasury, providing us with a solid foundation to build from and execute on our strategic plans for 2021 and beyond. Our goals include increased investment into research and development, expanding our sales and distribution networks, and firmly establishing HempFusion as a leader in the dynamic global CBD industry.”

HempFusion is a health and wellness CBD company utilizing the power of whole-food hemp nutrition. HempFusion distributes its family of brands, including HempFusion, Probulin Probiotics, Biome Research, and HF Labs, to approximately 4,000 retailers across all 50 states of the United States and select international locations. HempFusion’s product portfolio comprises 46 SKUs including, tinctures, proprietary FDA Drug Listed Over-The-Counter (OTC) Topicals, Doctor/Practitioner Lines and more. HempFusion says it has an additional 30 products under development. HempFusion is a board member of the US Hemp Roundtable, and HempFusion’s wholly-owned subsidiary, Probulin Probiotics, is one of the fastest-growing probiotics companies in the United States, according to SPINs reported data.

The company said it had revenues of $3 million in 2019 with a net loss of $12 million and total liabilities of $7.7 million.

Mitchell is a naturopathic doctor and brings 25 years of business development, scientific, nutritional, and product development experience to the company’s leadership. Mitchell has in-depth knowledge of the natural supplements industry, Hemp, CBD and probiotics, as well as ingredient sourcing. Mitchell also has extensive understanding and a background in regulatory matters specifically relating to FDA and other U.S. and foreign governmental agencies. Mr. Mitchell previously held the position of Chief Science Officer for Country Life Vitamins, where he developed over 300 products and assisted that company through its acquisition by Kikkoman Foods in 2006.

William SumnerAugust 14, 2019

It’s time for your Daily Hit of cannabis financial news for August 14, 2019.

On the Site

Zenabis Global

Zenabis Global Inc. (TSX: ZENA) (OTC: ZBISF) reported that its second-quarter net revenue rose 78% to $25 million from last year’s $4.1 million for the period ending June 30, 2019. The company said that the results were achieved “despite being negatively impacted by temporary price reductions on inventory sold to provincial counterparties designed to help Zenabis to capture a larger share of the recreational cannabis market.”

Charlotte’s Web

Charlotte’s Web Holdings, Inc. (TSX: CWEB)(OTCQX: CWBHF), a producer of whole-plant CBD hemp extract products, reported its financial results for the second quarter ending June 30, 2019. The company’s revenue grew 45% to $25 million over last year’s $17.2 million for the same time period. The net income fell to $2.2 million from last year’s $3.7 million.

Who’s Really Buying CBD? And Why?

If you’re asking yourself who’s buying CBD products, just take a stroll to your local grocery store and mosey over to the vitamins and supplements section. Prepare to be overwhelmed by the thousands of nutraceutical “wellness” products filling the shelves – everything from melatonin chocolates for sleep-aid to echinacea for immune support – and yes, very recently products containing the compound that’s outshined Beyonce in popularity, CBD.

In Other News

Jushi Holdings

Today, Jushi Holdings Inc. released its financial results for the second quarter. Year-over-year, revenue for the quarter increased to approximately $200,000, and the gross profit was roughly $200,000. The net loss increased to $11.8 million, up considerably from $100,000 in the same period of the previous year. Despite low earnings and high losses, the company has a net working capital of $95.4 million, of which $86.7 million is in cash.

Sundial Growers

Sundial Growers Inc. (NADAQ: SNDL) has released their financial results for the second quarter. Gross revenue was $20.3 million. The net loss declined from $16.6 million in the first quarter to $12.4 million. Adjusted EBITDA was a loss of $500,000, up from a loss of $5.5 million. “Sundial accomplished great things this past quarter and our team’s solid execution across key areas of our business resulted in significant revenue growth,” said Torsten Kuenzlen, CEO of Sundial. “We are very confident in our go-to-market strategy, our strengthened balance sheet and our ability to execute upon organic growth opportunities.”

The Green Organic Dutchman

After the close of the market yesterday, The Green Organic Dutchman Holdings Ltd. (TSE: TGOD) reported their financial results for the second quarter. Revenue rose 20% over the previous quarter to $2.9 million. The net loss rose from $8.5 million in the previous year to $16.6 million. “Q2 was pivotal for the Company as we began commercial production in the second phase of our Hamilton site and expanded our product line for the Grower’s Circle,” commented Brian Athaide, CEO of The Green Organic Dutchman.

Helix TCS

Today, Helix TCS, Inc. (OTCQB: HLIX), announced the release of its financial results for the second quarter. Quarterly revenue was $3.9 million. The gross profit was $1.9 million, with a gross margin of 49%. “We feel that we are still deeply undervalued due to our focus on execution as opposed to publicity, and are working to tell the simple truth of our constantly improving business and strong results,” said Helix TCS CEO and Executive Chairman, Zachary L. Venegas.

HempFusion

HempFusion, Inc. closed a brokered and non-brokered private placements of a total of 28,800,000 units of the Company at a price of US$1.25 per Unit for gross proceeds of US$36 million. The brokered portion of the Offering consisted of the sale of 26,227,650 Units for aggregate gross proceeds of US$32,784,563 and was completed by a syndicate of agents led by Canaccord Genuity Corp. and including Haywood Securities Inc. and PI Financial Corp. Due to demand, the Offering was upsized from US$20 million to US$36 million.

Debra BorchardtJune 11, 2019

US hemp-based CBD company HempFusion has a distribution with over 3,400 retailers and is now partnering with RADD Capital to advise the company on strategic fundraising initiatives including multiple staged private financings and a future Canadian Initial Public Offering.

“We are incredibly excited to partner with RADD Capital and leverage their extensive cannabis and hemp industry expertise and significant financial service capabilities,” stated Ian deQueiroz, co-founder and CEO of HempFusion. “This transformative business partnership is going to raise the bar and take our Company to the next level as we prepare to rapidly scale, deploy capital, and emerge as a leader in the global CBD industry.”

The company is FDA compliant and one of two companies with pending Self-Affirmed GRAS Affirmation. HempFusion has 31 products launched and 25 in the pipeline with two unique brands. It is one of the first 13 companies certified by the US Hemp Authority (GMP Verification).

RADD Capital has provided strategic advisory services to raise over $650,000,000 for cannabis companies since 2016. The company was founded by Rob Anderson, Dave Doherty, and Danny Brody and it leverages its extensive industry expertise to capitalize companies within hyper-growth sectors that have established brands, best-in-class products, and driven management teams and transforms them into world-class companies.

“HempFusion is the only company we have found that has established the entire platform for success including a proven management team with international distribution, sales across 47 US States and a proven product portfolio; the only missing component was access to significant capital,” commented Rob Anderson, CEO of RADD Capital. “With our track record of advising with respect to successful financings including Organigram, Emblem, TGOD and Plus Products, we plan to leverage our industry-leading experience, network, and intellectual capital to help build the next major player in the global CBD industry.”

HempFusion Team

Hemp Fusion is led by an equally impressive team. Ian deQueiroz is the co-founder and CEO. He’s a serial entrepreneur known for establishing multiple hemp and cannabis companies including Epican Jamaica, a leading vertically integrated Jamaican cannabis company, 49.18% owned by The Green Organic Dutchman. Dr. Jason Mitchell, N.D. is the co-founder and President – a Naturopathic doctor and previous Chief Science Officer at Country Life Vitamins (Acquired in 2006). He was responsible for formulations and the successful launch of over 300 products

Ashley Grace is the CMO. He was previously the CMO of Charlotte’s Web. Grace brings significant fortune 500 marketing experience with companies such as Campbells, Pepperidge Farms, and Brown-Forman and has 4 David Ogilvy awards for success. Debbie Wildrick is a co-founder and EVP. He is a distribution and channel expert with 30 years’ CPG experience with companies including Pepsi, Tropicana, and 7-Eleven. While at 7-Eleven, Debbie managed a $4 billion product portfolio

HempFusion Products

HempFusion says it has established itself as a top three best-selling CBD brand in health food stores across America. The company has launched a one-time online-only sale leading up to the launch of its brand-new e-commerce platform.

“We have incredible customers that have come to know and believe in our products because they work and taste great,” said Jason Mitchell, ND, co-founder, and President. “While we transition to the new platform expected in the coming days we wanted to give back and offer an up to 50% off sale. This is an incredible opportunity for all CBD consumers ranging from first time cannacurious consumers to seasoned enthusiasts utilizing CBD for sleep, stress and post-workout recovery, and even to customers looking for unique gift ideas.”

Daily Hit: March 29, 2023

Schwazze Loses $18.5 Million Despite ‘Record’ Revenue

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HempFusion Archives - Green Market Report

HempFusion Buys Sagely Naturals In $25 Million Deal

HempFusion Completes $17 Million IPO, Begins Trading On TSX