Capitalizing On Plant-Based Trend: Cultured Foods Acquisition Allows This US Hemp Co. To Expand In Europe
Portfolio Pulse from Jelena Martinovic
CV Sciences, Inc. (OTCQB:CVSI) has completed the acquisition of Cultured Foods, a European manufacturer and distributor of vegan foods, for up to $535,000. The deal includes a cash payment, shares of CVSI stock, and a potential earn-out. This acquisition allows CV Sciences to expand its +PlusCBD products in Europe and introduce Cultured Foods' products in the US. The acquisition is expected to be accretive in its first year and contribute to scaling economics. CVSI shares dropped 6.2657% to $0.0374 per share after the announcement.
December 12, 2023 | 9:52 pm
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CV Sciences has acquired Cultured Foods, aiming to expand in Europe and bring new vegan products to the US market. The acquisition is structured to be accretive and support growth, but the stock price fell 6.2657% to $0.0374 post-announcement.
The acquisition is strategically important for CV Sciences' expansion and diversification. However, the immediate negative reaction in stock price suggests short-term investor concerns or a possible dilution effect from the equity issued for the acquisition. The long-term benefits may be positive, but short-term impact is negative.
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