Cronos, a Canadian pot company, has announced that they are gaining access into the American market by purchasing Redwood Holding Group for $300 million. The U.S. Group is the firm that manages Lord Jones, the famous CBD beauty brand in the country.
Lord Jones started operating in 2015 with Robert Rosenheck and Cindy Capobianco. They currently produce beauty items containing CBD like lotions, oils, and bath salts. They also manufacture CBD-infused gumdrops. Lord Jones was the first brand with CBD that Sephora allowed into their retail store.
CBD is an extract taken from the cannabis plant. It is supposed to have low levels of THC, and Congress legalized the use of CBD from hemp plants last year. Americans are getting more and more interested in CBD products, which is why Cronos’ move to enter the U.S. market is timely and smart. Their shares even rose by 9%, now at $13.84 per share.
To keep the essence of what Lord Jones is, Cronos decided to take in the two founders, Rob and Cindy, as soon as they close the deal. They are willing to work together to create more skincare and other products derived from hemp.
Altria, a tobacco giant, made a $1.8 billion investment in Cronos, which give them a 45% stake in the company.