CBD, News, North America, Transactions, UK

After emerging from bankruptcy, GenCanna on UK buying spree

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Kentucky-based CBD maker GenCanna Global, which re-emerged after bankruptcy last year, said it has acquired a London-based group that will help the company expand its bulk ingredient and finished goods operations in the United Kingdom, Europe and other markets around the world.

The transaction is the second by GenCanna this year in the UK.

GenCanna said the deal with CBD Capital, a supplier and distributor of pharma-grade cannabinoids, will “greatly facilitate the expansion and completion of several key channel strategies and market growth initiatives currently within the CBD Capital pipeline.” CBD Capital holds regulatory accreditations and certifications in the United Kingdom and the European Union, according to GenCanna.

CBD Capital’s assets include operations in Rotterdam, Netherlands, which offer next-day delivery to markets throughout the European Union, and a portfolio of sub-brands.

Second purchase

GenCanna also purchased the UK’s Taylor Mammon, a white label manufacturer and CBD distributor, in March.

Financial details of the deals were not indicated. GenCanna said CBD Capital CEO Hassan Akhtar will continue to serve in his current role.

A federal bankruptcy judge approved the sale of GenCanna’s assets to MCG Investment Group, a New York-based, private lender and one of GenCanna’s creditors, for about $77 million (€66 million) in May 2020. At the time of the bankruptcy filing, the company said it owed $100-$500 million (€83-425 million) to its creditors.

Before the bankruptcy, GenCanna’s had ambitions to become a global player in CBD production, with a planned $40 million (€34 million) hemp processing plant in Mayfield, Kentucky one of its key initiatives. But the project suffered delays and cost overruns.

The company’s troubles came to light in October 2019 when a group of contractors said GenCanna owed them $13 million (€11 million) and filed liens against property the company had leased for the new processing facility. Other legal actions followed, eventually leading to the company’s bankruptcy.

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