KNOXVILLE, Tenn. – May 23, 2019 – Blühen Botanicals has closed its US $30.06 million investment agreement with SOL Global Investments Corp. as part of SOL Global’s portfolio company, Heavenly Rx. SOL Global had previously announced the assignment of its rights to acquire Blühen to Heavenly Rx on February 25, 2019.
Blühen will become Heavenly Rx's exclusive supplier of bulk hemp-derived CBD distillates and isolate and hemp-based extracts, which will provide Heavenly with a guaranteed source (and vertical integration) of the highest quality ingredients for its burgeoning product offerings at cost-effective pricing, and will also insulate Heavenly from the volatile pricing and quality standards that exist in the hemp biomass wholesale markets.
Heavenly Rx acquired 50.1% of the membership interests in Blühen in exchange for US$12.06 million in cash and $18 million in equity consideration in the form of Heavenly Rx stock. Joe Fox, co-founder and CEO of Blühen Botanicals, will join the Heavenly Rx executive team.
"Since its founding, Blühen's focus on advanced genetics, extensive farming partnerships, and an innovative processing and extraction model has helped shaped it into the visionary market leader in the hemp industry it is today," said Brady Cobb, CEO of SOL Global. "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."
“Blühen has built a vertically integrated supply chain and a premium consumer hemp brand in a very short timeframe,” said Joe Fox, CEO of Blühen Botanicals. “We are proud of 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.”
The investment will also allow Blühen to scale up its existing high-throughput processing and extraction capabilities to meet the growing demand in the U.S. marketplace, and further expand its already robust network of expert farmers across the states of Tennessee and Kentucky.
About Blühen Botanicals
Headquartered in Knoxville, Tennessee, Blühen Botanicals is a hemp biomass processing and extraction company with farming and distribution partners across the United States. With a dedicated, pharmaceutical grade hemp research facility, Blühen works with manufacturers to produce custom formulations for its own blend of boutique wellness products such as full spectrum hemp extract oils, softgels, creams, and pet treats and oils. The company employs expert entomologists, plant pathologists, agronomists, chemists, and engineers. Learn more at www.bluhenbotanicals.com.
About SOL Global Investments Corp.
SOL Global is an international investment company with a focus on, but not limited to, cannabis and cannabis related companies in legal U.S. states, the hemp and CBD marketplaces and the emerging European cannabis and hemp marketplaces. Its strategic investments and partnerships across cultivation, distribution and retail complement the company's R&D program with the University of Miami. It is this comprehensive approach that is positioning SOL Global as a future frontrunner in the United States' medical cannabis industry.