A CBD-extracting plant in Conover is expected to become part of a Canadian-based health and wellness company that is already a player in the legal cannabis industry.
Conover hemp processing plant Sugarleaf Labs LLC will be purchased by Neptune Wellness Solutions this summer, according to a Thursday press release.
Sugarleaf’s 24,000-square-foot facility is capable of processing 4.000 pounds of hemp biomass per shift. Headquartered off South McLin Creek Road, Sugarleaf sources hemp from local farmers who practice organic and regenerative farming to produce cannbidiol (CBD) oils, soft gels, lotions and more.
“ We are thrilled to be joining forces with Neptune,” said Sugarleaf CEO Peter Galloway in the press release. “The Sugarleaf team looks forward to combining our strengths with that of the Neptune team, thereby accelerating our combined growth and development.”
Neptune, which practices the extraction, purification and formulation of legal cannabis to produce health and wellness products, plans to purchase all assets of Sugarleaf and Forest Remedies LLC for $12 million in cash and $6 million in common shares on or before July 31.
“ With Neptune’s Canada-based operations ramping up production and the cannabis industry growing exponentially around the world due to an evolving legal global framework, now is the time to establish a state-of-the-art supply chain in the U.S. marketplace,” said Neptune CEO Jim Hamilton in the press release.
The Quebec-based company could pay an additional $132 million in cash or shares over the next three years to Sugarleaf if earnings before interest, taxes, depreciation, and amortization goals are met, the release said.