Sierra Sage Herbs Acquired By Creso Pharma

Rhea-AI Summary

Creso Pharma Limited (ASX: CPH, OTC: COPHF) has acquired Sierra Sage Herbs, a leader in natural first-aid and body care products, for an initial payment of $21 million, with future payments tied to sales performance through 2023. This acquisition expands Creso's presence in the US market and enhances its product portfolio with Sierra Sage's brands, including Green Goo. With over 90,000 distribution points across major retailers, Sierra Sage will maintain its leadership while benefiting from Creso’s R&D and manufacturing capabilities, paving the way for rapid growth and market expansion.

Positive

• Acquisition expands Creso Pharma's market reach into the US.
• Sierra Sage Herbs has over 90,000 distribution points, enhancing sales potential.
• Access to Creso's R&D and manufacturing resources will support product development.

Negative

• The acquisition cost of $21 million could impact immediate cash flow.

Pioneers in Plant-Based, Natural First-Aid and Body Care Join Creso's Portfolio of Market-Leading Cannabis and Hemp-Based Pharmaceutical Brands

LYONS, Colo., Feb. 7, 2022 /PRNewswire/ -- Sierra Sage Herbs, maker of the best-selling Green Goo, Southern Butter and Good Goo natural products brands, announced today its acquisition by Australia's Creso Pharma Limited (ASX: CPH, OTC: COPHF, FRA: 1X8). The deal extends Creso's global footprint to the US market while adding an additional range of natural health products to its existing lines of cannabis and hemp-based pharmaceuticals. Sierra Sage, which counts 90,000 points of distribution across the US including Whole Foods, Walmart, Amazon, Target.com, CVS, Walgreen's, Rite Aid, Albertsons, and Kroger, amongst others, will continue to operate under its existing leadership while gaining access to Creso's R&D, manufacturing and distribution resources.

"The acquisition of Sierra Sage Herbs and the company's product range is a major milestone for Creso Pharma."

Originally founded in 2008 by sisters Jodi and Jen Scott and their mother Kathy Scott, Sierra Sage has grown from a home-based, women-run start-up to a leader in the natural health products space. Its biggest line, Green Goo, is a collection of plant-based portable first aid and body care products that are crafted using a proprietary lipid-infusion process, rather than with pre-made extracts. This unique process increases the medicinal value of its salves, making its natural healing properties some of the most potent in the market. Green Goo ingredients are organic whenever possible, are sourced using fair trade principles, and include no harmful chemicals. The company also offers a line of hemp-infused health products through its Good Goo brand and a line of intimate skin care products through its recently launched Southern Butter brand.

"My family and I started Sierra Sage Herbs because we saw a real white space in the market for naturally safe, effective, simple wound care that was both portable and accessible," said Sierra Sage Herbs CEO and co-founder, Jodi Scott. "What started as a backyard herb hobby in Idaho has become one of the fastest growing CPG brands in plant-based personal care, but we know there's always more room to grow. We are thrilled to embark on this next phase in our journey as part of the Creso family and look forward to bringing an even bigger line of the quality products our fans love while continuing to serve as stewards to our environment and community."

Creso Pharma provides a range of cannabis and hemp-based pharmaceutical, nutraceutical, animal health and cosmetic products to markets in Europe, Asia, Africa, Oceania and Canada. The company was one of the first to bring pharmaceutical industry expertise and methodological rigor to the world of medical cannabis, operating facilities in Switzerland and Canada. Creso Pharma shares the same commitment to quality natural products and health innovation that Sierra Sage has built its business on, and the acquisition will allow for global product expansion in all directions.

"The acquisition of Sierra Sage Herbs and the company's product range is a major milestone for Creso Pharma," said William Lay, Group CEO and Managing Director, Creso Pharma. "It marks entry into the US CBD market and provides a strong foundation to rapidly scale up operations, product development, and sales, as well as further M&A transactions. The Green Goo product range is well established in the US, evidenced by relationships with key retailers and over 90,000 points of sale, as well as the large direct to consumer base that Sierra Sage Herbs has established in recent years. I would like to take this opportunity to welcome Sierra Sage Herbs to the Creso Pharma Group."

Creso is acquiring Sierra Sage for an upfront payment of $21 million with additional future payments based on meeting sales goals for calendar years 2022 and 2023. Under the terms of the deal, Sierra Sage will also maintain its status as a certified B corp.

About Sierra Sage Herbs:
Committed to making the best all-natural, plant-based skin care products, Sierra Sage Herbs, now part of Creso Pharma, is on a mission to spread goodness, empower change and redefine natural bodycare. Founded in 2008 by sisters Jodi and Jen Scott and their mother Kathy Scott, the company's natural products brands include the wildly popular Green Goo and Southern Butter, which are sold across more than 90,000 points of distribution around the US including Whole Foods, Walmart, Amazon, Target.com, CVS, Walgreen's, Rite Aid, Albertsons, and Kroger, amongst others. A certified B Corp, Sierra Sage Herbs aligns and partners with charities, aid organizations, and causes both in the United States and around the world. To learn more please visit: www.sierrasageherbs.com.

About Creso Pharma:
Creso Pharma Limited (ASX: CPH, OTC: COPHF, FRA: 1X8) brings the best of cannabis to better the lives of people and animals. It brings pharmaceutical expertise and methodological rigor to the cannabis world and strives for the highest quality in its products. It develops cannabis and hemp derived therapeutic, nutraceutical, and lifestyle products with wide patient and consumer reach for human and animal health. Creso Pharma uses GMP (Good Manufacturing Practice) development and manufacturing standards for its products as a reference of quality excellence with initial product registrations in Switzerland. It has worldwide rights for several proprietary innovative delivery technologies, which enhance the bioavailability and absorption of cannabinoids. Additionally, Creso operates a 24,000 square foot cannabis cultivation facility ("Mernova") in Nova Scotia, Canada, licensed by Health Canada under the Cannabis Act. Mernova produces craft cannabis products with the same adherence to quality and excellence that defines Creso Pharma. These products are at the top end of the market in terms of THC content and terpene profiles and continue to see strong and growing demand. Creso also owns a psychedelics research operation ("Halucenex") in Nova Scotia, Canada, which holds a Controlled Drug and Substances Dealer's License from Health Canada, which allows for research and development activities on a large range of psychedelic compounds. Halucenex recently lodged a Clinical Trial Authorization with Health Canada in order to complete a Phase 2 trial to test the efficacy of psilocybin as a treatment for treatment-resistant post-traumatic stress disorder. To learn more please visit: www.cresopharma.com.

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SOURCE Sierra Sage Herbs

FAQ

What brands are included in the Sierra Sage Herbs acquisition by Creso Pharma?

The acquisition includes Sierra Sage's popular brands: Green Goo, Southern Butter, and Good Goo.

What is the total value of the Creso Pharma and Sierra Sage Herbs deal?

The acquisition is valued at an upfront payment of $21 million, with additional payments based on sales performance.

How will Creso Pharma benefit from acquiring Sierra Sage Herbs?

Creso will gain access to a well-established product line, significant distribution network, and enhanced R&D capabilities.

When was the acquisition of Sierra Sage Herbs by Creso Pharma announced?

The acquisition was announced on February 7, 2022.

What is the expected impact of the acquisition on Creso Pharma's operations?

The acquisition is expected to accelerate Creso's growth in the US CBD market and enhance product offerings.