Better Choice Co. and cbdMD Talk Partnership
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“Subject to the negotiation and execution of definitive agreements, both parties intend to contribute certain CBD animal health related assets, including brands, CBD supply, logistics, service agreements, intellectual property, back office support and other assets with the mutual goal of expanding their respective hemp derived CBD pet brands, in exchange for 50 percent ownership in the newly formed joint venture,” officials said in a press release.
The joint venture, according to officials, will initially be focused on launching “Halo Hemp,” which will be manufactured by Better Choice using cbdMD’s CBD supply. Both parties will leverage their sales teams, marketing capabilities, online presence and distribution channels to maximize the economies of scale of the partnership, officials said.
“In a very short period of time, the team at cbdMD has built two award-winning and market leading brands along with a comprehensive CBD infrastructure,” said Michael Young, chairman of the board of Better Choice in New York. “Better Choice’s entry into the hemp derived CBD pet market, through our brands, including recently acquired Halo, could be accelerated through a partnership with the cbdMD team. In doing so, the to-be-formed joint venture will benefit by integrating our sales capabilities into well-established distribution channels, which includes major retailers. The CBD pet market is at the very early stages and there is more than enough room for several brands to become leaders the marketplace. In working together, we can leverage each other’s strengths.”
Martin Sumichrast, chairman and co-CEO of cbdMD in Charlotte, N.C., said, “We are proud to have established a secure supply chain with dedicated, 2018 Farm Bill compliant, hemp farms and extraction facilities to ensure the highest quality and integrity of the raw materials we use. Our staff of over 40 full time sales consultants are rapidly growing our distribution channels. We are also in the process of obtaining our NASC [National Animal Supplement Council] certification, which many larger retailers in the pet industry require for product placement. We believe this potential joint venture with Better Choice will help accelerate our goal of big box retail deployment.”