CV Sciences, Inc. acquires Elevated Softgels, a flexible, low-moq, nutriceutical manufacturer

CV Sciences Strengthens Market Presence with Elevated Softgels Acquisition

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A Strategic Move to Enhance Product Lines and Market Reach

In a significant development in the wellness industry, CV Sciences, a renowned consumer wellness company focused on hemp extracts and other natural ingredients, has announced the completion of its acquisition of Elevated Softgels, LLC, a leading provider of softgel encapsulation and tinctures. This acquisition marks a pivotal step in CV Sciences’ strategy to expand its footprint in the global health and wellness sector.

Strategic Acquisition for Enhanced Flexibility and Efficiency

Elevated Softgels has built a reputation for its operational flexibility, which supports both low and large minimum order quantities (MOQs). This capability allows for efficient capital use and enhances the speed to market for new products, a critical advantage in the fast-paced wellness industry. By integrating Elevated Softgels, CV Sciences not only broadens its manufacturing capabilities but also reinforces its commitment to quality and compliance, as Elevated Softgels is both GMP-certified and FDA-registered.

Joseph Dowling, the Chief Executive Officer of CV Sciences, expressed his enthusiasm about the acquisition: “We are thrilled that Elevated Softgels and its employees are joining CV Sciences. This is another milestone in our transition to a global health and wellness company. The synergies from this acquisition will enable us to leverage our key assets and relationships within the hemp and supplement sectors to drive long-term growth and enhance shareholder value.”

Immediate Benefits and Future Plans

Elevated Softgels already operates as a profitable entity, and CV Sciences plans to further increase this profitability by leveraging the existing capacity of Elevated Softgels. The acquisition also allows CV Sciences to in-source the production of select products from its +PlusCBD™ line, anticipating significant cost savings. In 2023, products such as softgels and tinctures constituted about 50% of CV Sciences’ total business, underscoring the strategic nature of this acquisition.

Financial Structure of the Deal

The total consideration for the acquisition of Elevated Softgels amounts to up to $1,000,000. This sum includes a $100,000 cash payment made at closing, the issuance of 17,422,181 shares of CV Sciences’ common stock valued at $700,000, and the potential for additional cash and stock payments up to $200,000 based on performance targets over the next 12 months. The financial arrangement reflects a balanced approach to acquiring a valuable asset while maintaining fiscal responsibility.

Growth and Opportunities

The acquisition is expected to be accretive to CV Sciences’ earnings from the first year and to contribute to scaling economics in subsequent years. CV Sciences has also filed a Current Report on Form 8-K, providing detailed information about the transaction terms and encouraging investors to review these details to understand the full scope and impact of the acquisition.

As CV Sciences continues to integrate Elevated Softgels into its operations, the company looks forward to enhancing its product offerings and strengthening its market position. This strategic move not only amplifies its capacity to serve current and new clients but also sets the stage for sustained growth and innovation in the evolving landscape of health and wellness.

The acquisition of Elevated Softgels by CV Sciences represents a well-calculated strategy to enhance its product line, increase operational efficiency, and achieve long-term profitability in the competitive wellness industry. This merger is poised to create substantial value for stakeholders and reaffirm CV Sciences’ commitment to providing high-quality, science-backed wellness products to its growing customer base.

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