- Xebra Brands (XBRA, XBRAF) has signed a non-binding letter of intent to acquire BSK Holdings Inc., a CBD e-commerce company.
- The acquisition, valued at approximately $4.5 million CAD, will include 45% of Xebra's share capital.
- Expected to complete by Q3 2025, the deal aims to enhance Xebra's presence in the U.S. and Mexican CBD markets.
Xebra Brands Ltd. (XBRA, XBRAF), a leading cannabis company, has entered into a non-binding letter of intent to completely acquire BSK Holdings Inc., a notable player in the CBD e-commerce industry. The move is anticipated to finalize by the end of the third quarter of 2025, marking a substantial step for Xebra into the expansive U.S. CBD market.
BSK Holdings has demonstrated financial strength, generating over $50 million USD in revenue since 2021, alongside a strong gross margin of 62% and an EBIDTA of $2.1 million USD. The acquisition represents 45% of Xebra's share capital, with an estimated transaction valuation of $4.5 million CAD.
This strategic acquisition will merge BSK’s established brands like Keoni and AMMA with Xebra’s own Elements line, expanding the product portfolio and enhancing Xebra’s position in the North American CBD market. The deal is also expected to bring in over 2 million customers from BSK's database, leveraging its e-commerce expertise to boost Mexican market penetration.
With the North American CBD market projected to grow at a CAGR of 14.2% from 2024 to 2030, this acquisition is a calculated move to cement Xebra's growth trajectory in the fast-expanding sector. “Partnering with Xebra allows BSK to enter the Mexican market under the only company legally permitted to sell cannabis in Mexico,” noted Fraser Macdougall, CEO of BSK.
The acquisition's completion is contingent on several conditions, including satisfactory due diligence, the negotiation and execution of a Definitive Agreement, board and shareholder approvals, as well as necessary third-party consents. Keith Dolo, a director present on both the Xebra and BSK boards, will abstain from relevant deliberations and votes on the transaction.
