22nd Century Group acquires CBD maker GVB Biopharma

The Buffalo-based plant technology company has acquired GVB Biopharma, an industrial hemp company specializing in cannabinoid-based consumer products in a deal worth around $55 million.

GVB, which has three manufacturing facilities in Las Vegas and Oregon, expects to generate $48 million in revenues this year.

“We are excited to combine with 22nd Century Group, pairing our production and manufacturing capabilities together with the best hemp/cannabis plant science in the world,” said Phillip Swindells, CEO of GVB.

Swindells said GVB sold more than five billion doses of CBD last year, “and we look forward to further scaling our business as a part of 22nd Century’s comprehensive platform.”

James Mish, 22nd Century Group’s CEO, described GVB as one of the largest CBD suppliers globally. The deal represents an opportunity for 22nd Century Group to double its revenues, he said.

“GVB represents a transformational acquisition for 22nd Century that will enable us to rapidly grow our hemp/cannabis franchise,” Mish said.

As part of the deal, 22nd Century Group will assume about $4.5 million of debt, GVB’s closing costs and will issue to GVB 32.9 million unregistered shares of stock in 22nd Century Group, worth nearly $50 million based on Thursday’s closing price. GVB was privately held, while 22nd Century Group is publicly traded, on Nasdaq.