Rhode Island CBD manufacturer Abacus Health Products acquired Utah’s Harmony Health brand of topical CBD products in a cash-and-stock deal worth $5.5 million.
The acquisition flexes Abacus’ retail footprint to roughly 12,000 locations nationwide.
Harmony Health brands, which will continue selling under the Harmony Health name, include lotions, pain relief gels and roll-ons made by third-party contract manufacturers.
The deal calls for Abacus to rename itself Abacus Wellness and give Harmony Health $2.8 million worth of subordinate voting shares. Abacus also agrees to tiered cash payments of:
- $1.9 million in 2020.
- $700,000 in 2021.
- $100,000 in 2022.
Abacus also owns the CBDMedic line of pain-relief topicals endorsed by former NFL tight end Rob Gronkowski.