Medical cannabis investment firm World High Life is set to buy British cannabis oil company Love Hemp in a £9m deal.
World High Life is hoping the deal will help them weed out the competition and expand its UK and European business. The company also announced a share placing intended to raise up to £5m.
Love Hemp is a London-based supplier of cannabidiol (CBD) and hemp products, and has distribution agreements in place with British retailers including Sainsbury’s, Ocado, Holland and Barrett, and WH Smith.
A growing number of cannabis companies have either listed or are seeking floatations in London, hoping that the UK will be at the forefront of the sector’s expansion in Europe.
World High Life said the acquisition would help it expand across the UK mainland Europe, with a focus on Germany.
There have been warnings that the regulatory situation in the UK is unclear, but World High Life chief executive David Stadnyk said in an interview he is avoiding risk as Love Hemp products do not contain the illegal mind-altering THC (tetrahydrocannabinol).
“We’re always looking for new markets and the UK is poised for growth,” Stadnyk said.
The deal is expected to be completed by the end of the month.
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