HEMPFUSION WELLNESS INC - CBDHF STOCK NEWS

HempFusion Wellness Inc. (TSX:CBD.U) (US:CBDHF) has announced the acquisition of Sagely Enterprises, Inc. for US$25 million, combining both companies' strengths in the premium CBD market. With Sagely Naturals leading in CBD topicals, holding a 23% market share in drug channels, this acquisition is expected to triple HempFusion's 2020 revenue, significantly expand its distribution to over 14,000 locations, and introduce new ingestible products. The deal also includes potential earnouts of up to US$5 million based on revenue targets.

HempFusion Wellness commends the Hemp Access and Consumer Safety Act, introduced by Senators Wyden, Paul, and Merkley, which aims to redefine hemp and CBD as dietary supplements under U.S. federal law. This bill would eliminate barriers for legal hemp products in the U.S. and supports HempFusion's readiness for regulatory compliance through GRAS and NDIN designations. The Act is expected to significantly benefit various stakeholders in the hemp industry by providing clarity and safety regulations, addressing existing economic impacts from unclear regulations.

HempFusion Wellness Inc. (CBDHF) reported a strong first quarter 2021 with consolidated revenue increasing 7.6% to $983,496 compared to $913,646 in Q4-2020. Direct-to-consumer (DTC) sales surged 59.3% to $244,255. However, B2B net revenue dipped 2.8%. The company reported a gross profit of $280,205, representing 28.5% of net revenue. Operating expenses rose 42.9% to $6,306,703 due to IPO-related costs. Despite challenges from COVID-19, international sales rebounded, totaling $75,994. The company ended the quarter with a robust cash position of $17,074,030.

HempFusion Wellness has announced the results from its virtual Annual General Meeting held on May 14, 2021. All proposals presented to shareholders were approved, including the election of all director nominees. Notably, director Jason Mitchell received 81.20% support, while Ian Dequeiroz secured 81.19%. Shareholders also appointed MNP LLP as the company's auditor for the upcoming year. A total of 26,247,492 Common Shares were represented at the meeting, accounting for 22.37% of the total issued shares.

HempFusion Wellness Inc. (US:CBDHF) has entered a Purchase Agreement to acquire 100% of APCNA Holdings LLC, the parent company of Apothecanna. Established in 2009, Apothecanna is a leader in cannabis-powered body care and topicals, known for its innovative CBD products. This acquisition is projected to double HempFusion's historical revenue with over $4 million in 2020 and will expand its retail distribution by adding 1,800 stores, including CVS. Apothecanna's strong eCommerce presence accounts for 50% of its revenues, driving high gross profit margins of approximately 70%.

HempFusion Wellness has received a significant purchase order worth $216,000 from a long-standing Dubai-based customer, marking a potential recovery in international sales post-COVID. This customer, which has a history of annual orders exceeding $800,000, signals a positive trend for HempFusion as it anticipates further growth in international revenue. The company is focused on expanding its revenue through organic growth and potential acquisitions while maintaining a strong cash position with over a year of working capital and no immediate financing needs.

HempFusion Wellness Inc (US:CBDHF) will report its financial results for Q1 2021 on May 17, 2021, at 4 p.m. ET, followed by a conference call at 4:15 p.m. ET. The company distributes a range of CBD and probiotic products across approximately 4,000 retail locations in the U.S. and internationally. HempFusion boasts a diverse product portfolio with 48 SKUs and aims to further expand with an additional 30 products in development. The announcement highlights the company's focus on regulatory compliance and human safety in the CBD market.

HempFusion Wellness Inc. (TSX:CBD.U, US:CBDHF) addresses its recent stock price decline, assuring investors that no undisclosed events have contributed to this change. The Company is maintaining its five-channel distribution strategy and confirms that all material information is disclosed. HempFusion emphasizes its strong partnerships, with a cash position of approximately US$9.3 million as of December 31, 2020. It ranks as the #2 CBD brand in Awareness and has enhanced its digital strategy, resulting in a significant traffic increase to its website.

HempFusion Wellness has received conditional approval to launch its CBD products on Alibaba's Tmall Global, expanding its market reach to over 750 million potential consumers in Greater China. This strategic move follows the successful launch of Probulin Probiotics on the platform. The approval enables HempFusion to introduce its OTC-listed topical products, including Acne Relief and Pain Relief creams, enhancing brand visibility and potential revenue. Executives emphasize the competitive advantages and significant revenue potential in accessing this vast consumer base.