CV Sciences, a specialist in hemp extracts, has announced that it’s entered into a definitive agreement with Extract Labs, a manufacturer or cannabinoid gummies, topicals, and tinctures.
 
Extract Labs’ branded products are sold through a range of B2B and B2C channels. The company has operational flexibility to allow for low to large minimum order quantity production runs, allowing for efficient use of capital and the ability to increase speed to market for new product development.
 
“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 Joseph Dowling, CEO of CV Sciences. “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 of Extract Labs will consist of a $400,000 payment, less the amount of certain holdbacks and adjustments, and the issuance of shares of CV Sciences’ common stock valued at $1,000,000 based on the 60-day volume weighted average price of CV Sciences’ common stock. Extract Labs will also be eligible for additional shares, depending on certain conditions.
 
The acquisition is expected to close during the first quarter of 2025.