Cellular Goods PLC - London-based cannabinoid consumer products company - End negotiations for its proposed acquisition of Cannaray Brands Ltd & Love CBD Health Ltd from Cannaray Ltd. The companies are subsidiaries of Cannary Ltd. Says that "as a result of changes in the deal itself, it was not in the best interests of shareholders to proceed."
In September, Cellular Goods said it had agreed to pay GBP14.2 million, consisting of GBP1 million in cash alongside "a number" of new Cellular shares for the two companies. The brands offer a range of ingestible cannabidiol products published on the UK Novel Foods register and are sold through 1,500 retailer outlets and direct-to-consumer branded websites.
"In parallel with the transaction, the company has been proactively reviewing its product range, proposition, financials, strategy and opportunities. Its focus will continue to be to develop and expand the company's business model and to position the company for long term growth," Cellular Goods says.
Current stock price: 0.54 pence, down 17% on Wednesday in London
12-month change: down 90%
By Sophie Rose; Alliance News reporter
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