World High Life to buy cannabis oil supplier Love Hemp for £9m

Medical cannabis investment company World High Life has agreed to buy London-based cannabis oil supplier Love Hemp for up to £9m.

The group also announced a share placing of up to £5m to help fund the acquisition.

Under the terms of the deal, World High Life will pay £4m in cash on completion and £3m through the issue of 30m shares on completion. There will also be £2m of deferred cash consideration in the three years after completion.

Love Hemp has more than 40 product lines, comprising oils, sprays and vapes and a variety of edible and water-based cannabidiol products. In the year to the end of June 2018, the business made a pre-tax profit of £532,097 on turnover of £2.5m.

World High Life said the deal will significantly accelerate its expansion plans across the UK and Europe, with a focus on Germany over the course of 2020.

"If completed, the transaction will also give World High Life access to Love Hemp's extensive online distribution network and access to the 1,200 convenience stores in the UK, including leading high street stores such as Holland & Barrett and WH Smith, through which Love Hemp currently sells its products," it said.