World High Life, the recognized medicinal cannabis investment firm, signed a deal to purchase Love Hemp for £9 million. Love Hemp is a cannabis oil company from the United Kingdom. The main goal is to expand its business in Europe.
The cannabis industry is never boring. World High Life announced they want to raise up to £5 million to expand its services and continue with its expansion in the market.
Companies have been benefited by the legalization of the cannabis market in Canada, that’s why some of the firms are now trying to seel flotations in London. The main goal is to expand in Europe using the United Kingdom as a gateway.
It is worth mentioning that the regulatory environment and framework in Britain is still unclear, according to lawyers in the country. However, companies consider that there is a lot of potential in the market to capitalize.
David Stadnyk, the CEO of World High Life, explained that they are working in order for products not to contain the illegal and mind-altering THC (tetrahydrocannabinol).
Furthermore, Love Hemp has already signed a distribution agreement with over 1,200 British stores. This would clearly help the company expand in a market with a large future potential. Love Hemp is currently selling CBD-infused water and CBD oil.
The deal should be finished by the end of the current month and it would help World High Life start focusing on Europe. Germany is one of the countries in which the firm is interested the most.
As per the report, the acquisition includes £4 million in cash on completion. The rest is £3 million in shares that are paid to Love Hemp and a deferred cash consideration of £2 million depending on the future performance of the firm.
The firm is currently listed on the NEX London exchange. Smaller companies are looking for investments and funds on this exchange. In the future, it could be a strategic move to get listed on the prestigious London Stock Exchange (LSE).