Ionic Brands Corp., a Washington-based manufacturer of luxury cannabis vaporizers and cartridges, is acquiring British pipe-maker Astleys of London KH Ltd. for $7.8 million in cash and stock, the companies announced May 29.

Ionic signed a letter of intent with Astleys on May 17, subject to definitive documentation. The final value of the share component of the deal will be based on the closing price of Ionic's shares just before the closing date of the deal, which was not disclosed.

Under the agreement, Ionic will buy Astleys' international intellectual property and retain the company's brand management team.

Ionic operates in Washington, Oregon, California and Nevada and sells small-batch luxury cannabis oils in addition to vaporizers, according to the company's website. Astleys began as a London-based pipe shop in 1862 and shuttered in the 1990s before being recently relaunched as a luxury cannabis vaporizer brand.

Ionic will use its cannabis oil in three of Astley's vaping devices, according to the company.

"While the Astley's brand is highly strategic to our overall position in the cannabis industry, we must also consider the deep economic benefits of much higher gross margins related to the Astley's brand as well as providing margin lift for our other premium products and brands," said Ionic CEO and Chairman John Gorst.