A recent asset purchase by Charlotte's Web Holdings (OTC:CWBHF) is now in the books. The company announced Thursday that its buyout of Abacus Health Products has closed.
The two companies announced the all-stock deal in March, agreeing that Abacus Health investors would receive 0.85 of one Charlotte's Web common share in exchange for each share they held of their company. All told, this valued Abacus at roughly 99 million Canadian dollars ($73 million).
Like Charlotte's Web, Abacus Health, whose stock was listed on the Canadian Securities Exchange before the acquisition, concentrates on the manufacture of cannabidiol (CBD) products. It produces and sells both medical and recreational products infused with the ingredient. With its new asset, Charlotte's Web is notably raising its presence in the CBD segment.
"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," Charlotte's Web said in the press release heralding the closure of the deal.
The company said that several of Abacus' topicals would be made available through Charlotte's Web's e-commerce platform.
In the wake of the closing, Charlotte's Web said, it now has almost 90.3 million shares of its common stock outstanding. This represents a significant rise from the recent tally of just under 72 million, as reported by Yahoo! Finance. Abacus' shares on the Canadian Securities Exchange were expected to have been delisted.
Investors didn't catch much of a buzz from this deal. Charlotte's Web shares closed down by nearly 9.7% on Thursday, a worse performance than that of the broader equities market and many peer cannabis stocks.