The deal allows Yooma to leverage Socati's premium quality cannabinoid ingredient manufacturing capabilities and technologies and expands its global footprint into the United States.
TORONTO, March 22, 2021 /CNW/ - Yooma Wellness Inc. ("Yooma") (CSE: YOOM), an emerging marketer and distributor of cannabinoid and hemp-derived wellness products, today announced that it acquired Socati Corp.("Socati"), a U.S. based manufacturer and seller of premium-quality cannabinoid ingredients and consumer products. The transaction valued at US$25,000,000 (the "Transaction"), was agreed on March 19, 2021.
The acquisition of Socati expands Yooma's geographic footprint into the United States, after recently acquiring certain UK and European wellness brands, including Blossom, MYO Plant Nutrition, What the Hemp and Hello Joya. Combined with Yooma's existing operations in Asia selling CBD, hemp and general wellness, beauty and skincare products through cross border ecommerce into China, the acquisition gives Yooma an expanded global presence. It also provides vertical integration opportunities with the ability to manufacture functional ingredients to use in its growing portfolio of cannabinoid and hemp-derived wellness products. This vertical integration and diverse geographic footprint offer distinct advantages over Yooma's competitors, providing a platform uniquely positioned to capitalize on organic growth and acquisition opportunities as they arise.
"Socati's unique ability to deliver consistent cannabinoid ingredients and finished products that meet industry-leading quality standards makes Socati a natural fit for Yooma," said Lorne Abony, Chairman of Yooma. "The Socati acquisition further expands Yooma's global footprint by adding Socati's customer base which includes some of the largest consumer brands in the CBD and wellness space across North America."
Operating primarily out of its 22,000 square-foot manufacturing facility in Montana, Socati's business focuses on the manufacture of cannabidiol ("CBD"), minor cannabinoids such as cannabigerol ("CBG") and cannabinol ("CBN"), and other functional ingredients. It also specializes in the sale of an extensive catalogue of wellness products made with these ingredients.
Its intellectual property and proprietary technology in cannabinoid extraction and separation, as well as best-in-class in-house analytical capabilities, has positioned Socati as a leader in the U.S. market. It is one of the first scale producers of 'USDA Organic' certified cannabinoid ingredients with non-detectable levels of THC, the psychoactive component of hemp, which creates compelling brand value and an early-mover advantage as consumers begin to shift towards organic CBD products. The USDA Organic Seal is the gold standard for supply chain integrity in the United States with consumer demand for organic products driving higher prices relative to non-organic products.
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