Heavenly Rx Closes $30.06 Million Blühen Botanicals Investment
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Toronto-based SOL Global Investments Corp. (CSE: SOL) (OTCMKTS: SOLCF) (Frankfurt: 9SB) just announced that its portfolio company, Heavenly Rx. Ltd. has closed a $30.06 million investment in Knoxville, Tennessee-based hemp company, Blühen Botanicals LLC Investment. However, the announcement of the assignment of right of purchase dates back to 25th February, 2019.
The breakdown of the deal shows that Heavenly Rx bought 50.1% membership interest in Blühen for $12.06 million and $18 million in equity in the form of Heavenly Rx shares. Consequently, Blühen will become the exclusive supplier of hemp-based extracts and bulk hemp-derived CBD distillates and isolates to Heavenly Rx. This means Heavenly Rx will now has a guaranteed source of the highest quality and cost-effective ingredients for their products. Also, the deal insulates Heavenly Rx from the quality standards issues and volatile pricing which persist in the hemp biomass wholesale markets.
In a statement, the CEO of SOL Global, Brady Cobb said, “Since its founding, Blühen’s focus on advanced genetics, extensive farming partnerships, and an innovative processing extraction model has helped shape it into the visionary market leader in the hemp industry it is today. This investment in Blühen will allow Heavenly Rx to control the quality and pricing of its CBD isolate, the most important ingredient that Heavenly Rx will utilize across all of its consumer product lines.”
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The deal has also led to administrative changes as co-founder and CEO of Blühen Botanicals, Joe Fox will join Heavenly Rx executive team. The investment will also lead to an increase in Blühen’s production capabilities in order to meet the growing demand in the U.S. market. Blühen will also expand its already robust farmers network across Kentucky and Tennessee.
Fox also expressed excitement and satisfaction for the deal through the statement, “Blühen has built a vertically integrated supply chain and a premium consumer hemp brand in a very short timeframe. We are proud of the many accomplishments of the Blühen team, including the recent launch of our flagship retail wellness location. This investment from SOL Global and the partnership with Heavenly Rx will open the door to significantly more distribution channels in the international hemp market.”
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Heavenly Rx Closes $30.06 Million Blühen Botanicals Investment
