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Apothecanna Lands $15 Million Acquisition Deal

June 09, 2021 BeautyMatter
June 09, 2021

HempFusion, a leading CBD supplement company, is to acquire Apothecanna for $15 million in a stock-and-cash deal.

WHO: Established in 2009, Apothecanna pioneered cannabis-powered body care and topicals, and was the first topicals brand to expand nationally and obtain a Federal Trademark. Focused on the premium recovery, pharmacy, and spa segments, Apothecanna has established itself as an industry leader in the development of innovative, all-natural CBD products.

Founded by Jason Mitchell ND and Ian DeQueiroz, HempFusion is a leading health and wellness CBD company utilizing the power of whole-food hemp nutrition. HempFusion distributes its family of brands, including HempFusion, Probulin Probiotics, Biome Research, and HF Labs, to approximately 4,000 retail locations across all 50 states of the United States and select international locations. Built on a foundation of regulatory compliance and human safety, HempFusion’s diverse product portfolio comprises 48 SKUs including tinctures, proprietary FDA Drug Listed Over-The-Counter (OTC) Topicals, Doctor/Practitioner Lines, and more. With a strong focus on research and development, HempFusion has an additional 30 products under development. The company trades on the Toronto Stock Exchange as CBD.U and on US over-the-counter markets at CBDHF.

WHY: The deal provides access to an additional 1,800 stores, including CVS, which materially increases HempFusion’s retail distribution footprint. In addition to FDM and e-commerce, this transaction provides added distribution channels, increasing HempFusion’s 5-channel strategy to 6 channels, and bolstering topical product distribution sales.

For Apothecanna, the transaction provides product efficiencies across topicals line while providing a near-term opportunity for expansion into ingestible products supported by HempFusion’s proprietary formulations. HempFusion’s substantial investment into regulatory compliance will help solidify Apothecanna’s leadership position in the CBD industry.

IN THEIR OWN WORDS: We are incredibly excited to enter into this agreement with Apothecanna, which, on closing, will have an immediate impact on HempFusion’s revenue while significantly bolstering our distribution and eCommerce platforms,” stated Jason Mitchell ND, HempFusion’s co-founder and Chief Executive Officer. “We look forward to working to close the transaction as soon as possible,” continued Dr. Mitchell.

“Quality, customer centricity, and innovation have always been core pillars of Apothecanna’s strategy since our founding almost twelve years ago,” said Jeff Henretig, President of Apothecanna. “In HempFusion, we found a partner that has a similar and complementary focus, with the capabilities to bring Apothecanna into more doors and homes across both the US and abroad. We look forward to joining the HempFusion family and empowering even more people to live healthier lives. We are deeply thankful to our founding team for getting us to this stage.”


  • HempFusion to acquire Apothecanna for $15 million in a stock-and-cash deal. The deal also calls for HempFusion to pay another $10 million if certain revenue targets for Apothecanna are met within 12 months.
  • Revenue of over $4 million in 2020 doubles HempFusion’s historical revenue with significant expansion planned for 2021 and beyond, making it immediately accretive to the company at closing.
  • Prior to the sale, Apothecanna raised $3 million in seed round funding from private investors. 
  • Approximately 50% of Apothecanna sales are generated online, with a focus on this higher-margin, direct-to-consumer business driving corporate gross profit margins of approximately 70%.
  • Apothecanna's website drives over 17,000 average monthly sessions, and nearly $2 million in gross sales per year with a 76% gross margin.

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