Voyager Life PLC (AQSE:VOY) said it has acquired a CBD extraction and manufacturing facility in Poland from Goodbody Health Ltd (AQSE:GDBY, OTCQB:GDBYF) for £1.5mln.
The consideration comprises £0.5mln in cash and £1mln of convertible loan notes and is subject to regulatory approval being granted by the authorities in Poland.
Voyager will acquire the shares of Goodbody’s Polish subsidiaries Sativa Wellness Poland and Olimax, which operate the CBD extraction and manufacturing at the facility in Bilcza, Poland.
In a statement, Nick Tulloch, Voyager chief executive, said: “This acquisition simultaneously fulfils two of our objectives, namely to extend our business into Europe and complete our vertical integration. Voyager will now be in a position to control the CBD supply chain from extraction to manufacturing to product accreditation to retail.
“As our VoyagerCann manufacturing division has grown, we have increasingly dealt with European customers who, as a consequence of Brexit, may find delivery times are elongated due to customs checks and prices are distorted by customs charges.
“Going forward, our product range that is already formulated and made in the UK can now be manufactured in Poland and distributed across the European Union’s single market.”
Tulloch noted that with prices of CBD products under pressure, the acquisition will enable it to make very significant cost savings, protect margins and offer better deals to end customers.
In the year to March 2022, the business being acquired generated sales of £720,000 compared to Voyager’s £178,000.
To help fund the deal, Voyager is raising £500,000 from new and existing shareholders with Tulloch and chairman Eric Boyle chipping in a combined £200,000.
Voyager will assume full operational control of the CBD extraction and manufacturing facility on 1 January 2023.
Separately, Voyager announced results for the six months to end-September 2002, showing a jump in revenues to £135,000 from £59,000 and losses of £511,000 (£314,000).
Cash at the year-end was around £1mln with no debt.
