A Denver company will soon purchase Utah Beverage Company to increase the sale of CBD infused drinks across the world. The company will spend $85M on this purchase, as per reports. New Age Beverage Corporation will soon acquire a private company Morinda Holdings of Provo, Utah by spending $85M. The main agenda of purchasing the company by spending a fortune is to increase the sale of both CBD and non-CBD drinks in the Asian region and other parts of the world.
According to the reports, the deal is on and will be settled by the end of this year. New Age will pay $75M in hard cash, whereas the remaining $10M will be paid through the stocks of New Age to this company. The main aim of the Morinda Company is to spread the sale of CBD infused drinks outside the United States. However, the company does not have such infrastructure for that.
After investing such a huge amount on this company, Morinda will be able to have the infrastructure to start selling their products across the Asian Region. Their motto is to increase sales up to 70% in countries like Indonesia, Taiwan, Japan, China, and Korea.
The company is expected to close the deal by the end of December this year. Now, New Age Beverage Corp is waiting for Congress to revise the hemp-derived CBD rules in the new Farm Bill. As the issue of new Farm Bill has not been finalized yet, the company is still not certain about many things.
However, the company will sell both CBD and non-CBD drinks through this deal. They will include tea and kombucha drinks along with CBD-infused drinks. For this, it is important for the Federal Law to be generous towards the cannabis-infused drinks and other hemp-derived products in the United States.
It is inevitable that the cannabis industry is growing rapidly in terms of business in the US. However, for not legalizing the same by federal law, many businesses are facing adversities. An absence of Marijuana Banking Solutions in the US makes it even difficult for the manufacturers to deliver products properly. Not only recreational but also the medical marijuana business is facing a lot of issues. Some of the private service providers are working hard to provide cannabis merchant accounts to the businesses today. This leads to more ease of business and financial stability in the cannabis industry than before.