There are still promising discussions happening in the Senate right now surrounding cannabis legalization, like Sen. Chuck Schumer’s recent meeting with equity groups. International entities now have their eyes on the market, following closely for any opportunity to expand into the flourishing American cannabis industry.
Australian-based company Creso Pharma is already getting its foot in the door via CBD, according to MJBizDaily. The company will be entering the American cannabis industry through a $21 million acquisition of CBD brand Sierra Sage Herbs.
The all-stock deal will add America to Creso Pharma’s list of countries they have operations in, including South Africa, Canada, Colombia, Pakistan, and Switzerland.
If the company meets specific revenue targets, Sierra Safe Herbs might have future payouts in 2023 and 2024.
The acquisition appears to be just the beginning of Creso Pharma’s American industry efforts. CEO Will Lay told a group of investors during a live YouTube stream that he has hopes for the company’s growth, despite a “fragmented” CBD industry.
He added that the acquisition provides Creso Pharma a “platform to rapidly enter U.S. THC markets upon any potential regulatory changes.”
Either way, the company’s exciting growth will also mean they need to pay close attention to compliance regulations.
Even certain CBD products need child-resistant caps. In addition to CBD and the potential launch of THC products, Creso Pharma indicated that they would be starting to work on mushroom products imminently.
Creso will be charging into the industry with the acquisition of Sierra Sage Herbs. Along with its existing line-up of products, they’ll be branching out with Sierra Sage Herbs’ natural health products, including some that don’t even include CBD.
Sierra Sage specializes in wellness products like Green Goo, a hemp-derived CBD product, and Southern Butter, a sexual wellness line that doesn’t contain CBD.
The deal will also bring Jodi Scott, Sierra Sage Herb’s founder, and CEO, to Creso Pharma’s executive team as the president of U.S. operations. However, Sierra Sage will still function under its current leadership. Under Creso Pharma’s umbrella, they’ll have access to R&D, distribution, and manufacturing resources.
In a press release, Lay explained how the acquisition of Sierra Sage is a “major milestone” for Creso Pharma.
As their company continues to expand, Lay said that it creates a “foundation” for the company to “rapidly scale up operations, product development, and sales, as well as further M&A transactions.”
Lay cited the success of Green Goo, which counts distribution among notable retailers like Whole Foods, Amazon, Walmart, Target.com, Walgreen’s, Rite Aid, Albertsons, CVS, and Kroger.
As for Sierra Sage Herbs, the company initially established itself in 2008 with sisters Jodi and Jen Scott and their mother, Kathy. It blossomed into a nationally recognized brand and a leader in natural health products from its home-based start-up.
Green Goo became a staple product line to the brand – a plant-based collection of first aid and body care products created through a lipid-infusion process instead of pre-made extracts. The process boosts the medicinal properties to produce a more effective treatment.
From Sierra Safe Herbs’s humble beginnings in Lyons, Colorado, to the $21 million all-stock deal with Creso Pharma, the all-woman-led team has created an all-natural wound care line that emphasizes fair trade principles.
In a statement, Jodi Scott expressed her gratitude to bring their family business to a national setting with even more significant backing.
“What started as a backyard herb hobby in Idaho has become one of the fastest growing CPG brands in plant-based personal care, but we know there’s always more room to grow,” said Scott. “We are thrilled to embark on this next phase in our journey as part of the Creso family and look forward to bringing an even bigger line of the quality products our fans love while continuing to serve as stewards to our environment and community.”