Las Vegas-based cannabis products producer Freedom Leaf Inc. said May 21 that it has agreed to acquire ECS Labs LLC for $14 million.
The transaction includes ECS' two wholly owned subsidiaries behind the Green Lotus premium hemp oil products brand.
Colorado-based Green Lotus specializes in cannabinoid products such as tinctures, soft gels, topicals, cartridges, gummies, pet tinctures and sparkling drinks.
Freedom Leaf said it expects the acquisition to broaden its offering of hemp CBD products and to increase its current customer base. The company also plans to expand its presence in the Mexican market where Green Lotus has an existing multiyear contract with CBD Life SA de CV, which is one of the few companies to hold CBD importation and distribution licenses within Mexico.
The transaction is expected to close on or before May 27, subject to customary closing conditions. Green Lotus founder Carlos Frias will become Freedom Leaf's CEO upon the closing of the transaction.