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Charlotte’s Web acquires Abacus Health Products

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BOULDER, Colo. — Charlotte’s Web and Abacus Health Products announced that they have completed the previously-announced plan of arrangement. Pursuant to the Arrangement, Charlotte’s Web acquired all the issued and outstanding subordinate voting shares of Abacus. All the outstanding proportionate voting shares of Abacus were converted into Abacus Shares prior to closing of the Arrangement. Pursuant to the Arrangement, holders of Abacus Shares received 0.85  of a common share of Charlotte’s Web for each Abacus Share held at the time of closing.

Charlotte’s Web is America’s largest vertically integrated hemp-derived CBD company. Combined, the companies distribute to more than 21,000 unique retail locations with limited shelf overlap due to adjacent but complementary positions across the ingestible and topical CBD product categories. Recently Charlotte’s Web added 1,100 new drug stores, more than 700 pet stores, and Abacus added more than 5,000 retail doors with the signing of a new retail partner.

Joining the Charlotte’s Web family of brands are Abacus’ consumer brands CBD MEDIC and Harmony Hemp, and for professional practitioners, Abacus’ CBD CLINIC brand.  Substantial product cross selling opportunities are available through each company’s respective distribution network. Starting in July, multiple Abacus topical products will be available for purchase through Charlotte’s Web’s leading Direct to the Consumer (DTC) ecommerce platform.

“The addition of Abacus Health cements a market leading position in both topical and ingestible products in the CBD category, representing approximately 33% market share of the U.S. CBD food/drug/mass retail channel,” said Deanie Elsner, chief executive officer of Charlotte’s Web. “We thank the founders and team members of both Charlotte’s Web and Abacus for their vision and hard work to build our respective vital brands. We are now one dynamic team and mission-driven company.”

Perry Antelman has been the CEO of Abacus since 2016 and will join Charlotte’s Web, effective Thursday, as Executive Vice President and President of Topicals.

Further information about the Arrangement is set out in the Abacus’ management information circular dated May 4, 2020, which can be accessed online under Abacus’ issuer profile on SEDAR at www.sedar.com.

 


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