The US CBD market is poised for massive growth in the next four years, and CannaOne Technologies (CSE:CNNA) (OTC:CNONF) (FRA: 3CT) is looking to gain a greater stake of this burgeoning industry. Less than two months after launching the BWell CBD online marketplace in partnership with California-based Real Life Sciences, CannaOne has signed a letter of intent to gain 100% ownership of both Real Life Sciences and the US-facing CBD marketplace.
The marketplace is one of the first CBD-focused online marketplaces in a market that is expected to reach $23.7 billion in sales by 2023. The projected growth of the US CBD market in the next few years represents a CAGR of 107%.
Naturally, CannaOne wants to solidify its spot before the market completely takes off and gain full ownership of the marketplace that it currently owns 24.9% of. CannaOne Technologies partnered with Real Life Sciences in April to launch and operate the BWell CBD online marketplace. Now the company is offering up $2 million in shares to acquire Real Life Sciences and its 75.1% ownership of BWell.
“Real Life Sciences’ expertise, vast network and strong relationships within the US has brought substantial value to the BWell marketplace during the past months and has been a key factor in the early launch for the business," said CannaOne Technologies CEO Solomon Riby-Williams.
"BWell is now capable of immediate sale and delivery of 140 high-quality CBD products at extremely competitive prices to thousands of potential households in the US. We believe that this infrastructure and knowledge contributed by Real Life Sciences to date provides substantial baseline support towards our Company now acquiring a sole ownership stake in the BWell marketplace that will assist to potentially provide long term substantial value to our shareholders.”
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CannaOne Targets Growing Online CBD Market
As mentioned, the US CBD market is in the midst of exponential growth, and many consumers are going online to purchase CBD products. When CannaOne launched BWell, the company understood the need to create an online CBD marketplace that provides consumers with product and brand variety.
The company managed to launch the website two months earlier than initially planned and signed on more than 10,000 customers during the pre-launch referral campaign, which signals the strong desire among US citizens to have access to an online marketplace to purchase CBD products.
The BWell Marketplace already contains over 140 high-quality CBD products, from oils and pre-rolls and edibles to CBD-infused creams and bath bombs, and continues to expand its product offering.
Apart from its wide variety of products, the BWell Marketplace is designed to build customer engagement. What's more, with built-in artificial intelligence (AI), the platform can recommend products based on that customer's previous orders and search history.
Investors who are interested in cannabis and CBD e-commerce might want to keep an eye on this merger, which has a closing date of October 25, 2019. CannaOne is on the ground floor of the rapidly growing US CBD market and could completely dominate the industry if it gains 100% ownership of BWell.
By 1:45 pm EST, CannaOne Technologies' share price was up 0.79% on the OTC at $0.64 USD.
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