Heavenly Rx, a Canadian business that specialises in cannabis-based CBD products, has acquired a 51% controlling stake in US plant-based company Tru Brands for just over US$6m.
The acquisition price will be paid through a mixture of $3.5m in cash and $2.57m in Heavenly Rx stock.
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Heavenly Rx, a portfolio company of local investment business Sol Global, said it plans to increase its equity stake to at least 62% through ongoing working capital injections into Tru Brands.
The US company, based in Golden, Colorado, sells plant-based products, such as bars and powders, under the Truwomen brand.
Until now Heavenly Rx, which cultivates hemp, has processed and manufactured a range of traditional CBD products, including oils, tinctures, balms, and vape-ready lines.
This deal is likely to see it moving into the infused foods area.
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By GlobalDataIn June, Heavenly Rx brought in Kellogg veteran Paul Norman as its new CEO.
Sol Global Investments, which established Heavenly Rx at the start of this year, now holds a 42% stake in the business.
