Freedom Leaf to acquire Hemp2o beverage brand

Freedom Leaf has signed a letter of intent (LoI) to acquire hemp-infused beverages brand Hemp2o.

The deal will be financed using a combination of cash and company stock and is expected to close in December this year.

Freedom Leaf’s CEO Cliff Perry said: “We are excited to welcome Hemp2o into the Freedom Leaf family, and look forward to expanding our national footprint based on their success of established authorised accounts in some of the largest retailers in the US.

“We believe that our consolidated sales teams and expanded product selection will increase revenue through both of our respective channels.”

Co-founded by San Francisco-based cannabis entrepreneur and rapper Gilbert Milam (Berner), Hemp2o offers eight flavours of organic hemp-infused beverages.

Hemp2o’s line-up includes Sunset Sherbert, Strawberry Watermelon and Blueberry Apricot. It expects to generate more than $2m of revenue this year.

Hemp2o’s products are currently available at selected retailers across the US, including Whole Foods, 700 Safeway/Albertsons, select Target locations in Los Angeles and San Francisco, and Amazon.com.

Upon completion, the combined companies are expected to benefit from consolidated production operations and economies of scale.

Freedom Leaf’s business development director Ray Medeiros said: “These are the type strategic acquisitions we envisioned when Merida Capital Partners invested in our company and they have again delivered for Freedom Leaf in identifying the opportunity and guiding us through the Hemp2o transaction.”

Freedom Leaf is the parent firm of CBD health and wellness brands Leafceuticals, IrieCBD and Hempology.