On Nov. 21, California-based CV Sciences, manufacturer of the +PlusCBD and +PlusHLTH lines, announced it entered into a definitive purchase agreement to acquire Extract Labs (Colorado), a manufacturer of premium cannabinoid products such as gummies, topicals and tinctures.
According to CV Sciences, Extract Labs has operational flexibility and can run large minimum order quantity (MOQ) production runs, allowing for efficient use of capital and new product development marketing. It is also GMP (good manufacturing practice)-certified and U.S. Food and Drug Administration (FDA)-registered.
CV Sciences said it expects the acquisition to increase sales to current and new clients. It also intends to in-source production of some of its key products.
“We are thrilled that Extract Labs and its employees are joining CV Sciences as another milestone in our transition to a thriving health and wellness company. The acquisition synergies are expected to increase our revenue and customer base, allow us to leverage our key assets, optimize operations and processes, and drive long-term growth and shareholder value. Extract Labs is a stand-alone profitable business, and our plan is to increase its existing revenue base and further leverage its existing capacity,” said CV Sciences CEO Joseph Dowling. “In addition, we are planning to in-source the manufacturing of select +PlusCBD branded products providing an opportunity for meaningful cost savings. Extract Labs manufacturing capability will provide us with greater control over our supply chain and accelerate our new product development cycle.”
The acquisition is expected to close in the first quarter of 2025. For more information, visit www.pluscbdoil.com.
