FastForward Innovations Ltd (LON:FFWD) has highlighted an announcement that its investee Yooma Wellness Inc, in which it holds a 5.1% stake, has acquired Socati Corp, a US-based maker and seller of cannabinoid ingredients and consumer products.
In its announcement, Yooma said the acquisition will expand its geographic footprint into the US after recently acquiring various UK and European wellness brands, including Blossom, MYO Plant Nutrition, What the Hemp and Hello Joya.
Yooma also said the purchase will provide “vertical integration opportunities, with the ability to manufacture functional ingredients to use in its growing portfolio of cannabinoid and hemp-derived wellness products”.
Under the terms of the deal, Yooma has paid US$25mln through the issue of around 23.3mln shares in the company at a price of C$1.34 each.
“Socati’s unique ability to deliver consistent cannabinoid ingredients and finished products that meet industry-leading quality standards makes Socati a natural fit for Yooma. The Socati acquisition further expands Yooma’s global footprint by adding Socati’s customer base which includes some of the largest consumer brands in the CBD and wellness space across North America”, Yooma chairman Lorne Abony said in a statement.
“We are delighted with Yooma’s rapid progress; this latest acquisition demonstrates its international ambition to expand beyond Asia into all the major cannabinoid markets including the US and Europe”, added FastForward chief executive Ed McDermott.
Shares in FastForward jumped 4.3% to 9.2p in late-afternoon trading on Monday.