Lucy Scientific Discovery Inc. (NASDAQ: LSDI) has announced its acquisition of hemp maker BlueSky Wellness in another all-stock deal, hot on the heels of purchasing rights to cannabis brand, High Times.
BlueSky reported online sales of over $20 million in each of the last two years with brands such as Keoni and Blush Wellness under its name. The acquisition is projected to diversify and boost Lucy’s revenue streams.
“The addition of the BlueSky portfolio and its team allows us to capitalize on revenue opportunities,” Lucy CEO Richard Nanula said in a statement.
“Coupled with our High Times acquisition, this strategically positions us for substantial near and long-term growth. This acquisition is a testament to our commitment to expand and grow our business, adding revenue that diversifies our company and should deliver significant value to our Lucy Scientific shareholders.”
Post-acquisition, BlueSky will introduce Lucy’s Amanita Muscaria mushrooms brand, Mindful, to its e-commerce platforms, leveraging High Times’ assets to optimize customer acquisition costs, the company said.
BlueSky shareholders are set to receive 3.5 million shares of Lucy stock, with additional payments tied to performance over the next five years. Post-acquisitions, Lucy estimates its total shares at around 25 million.
The company anticipates at least $30 million in revenue and $10 million in profit in the first year post-acquisition.
Fraser Macdougall, BlueSky’s CEO, also remarked on the partnership’s potential. BlueSky’s leadership brings experience from major industry players like PepsiCo and General Mills.
“This exciting partnership marks a significant step forward in our company’s journey and we are thrilled to work together with both the High Times and Lucy teams to unlock the value of the brands,” Macdougall said.
“Through the launch of products in Canada and other countries, as well as other direct to consumer opportunities that exist for us to explore in the U.S. market, the possibilities for growth are abundant.”