CBD brand disposed of for $2m by stricken wellness firm
A Canadian wellness brand has disposed of its Birmingham-based CBD company for $2m after it acquired the firm in 2021 in a deal worth £10.2m.
Yooma Wellness has sold Vitality CBD to Psilobrain Therapeutics, a Canadian biotech company and is looking to use the funds towards the group’s expenses and the settlement of the outstanding debt and liabilities.
Following the disposal, Yooma says it no longer has any operating business lines or revenue-generating assets and has struggled with significant liquidity constraints. It anticipates that it will have no alternative other than to pursue a liquidation, winding-up or insolvency proceeding.
In May, the company was given a cease-trade order by the Ontario Securities Commission, after it failed to file its annual financial statements, management discussion and analysis and CEO and CFO certifications for the previous year.
Its shares were then suspended from trading on the Canadian Securities Exchange and the AQUIS Growth Market since that date. Yooma says it does not expect it will be able to complete the necessary steps to lift the order on a timely basis or at all and looks to be subject to delisting from one or both Exchanges.
The current senior management team at Vitality have been retained by Psilobrain and will continue to operate the business day-to-day as Psilobrain focuses on integration and expansion.
Vitality was established in 2018 and quickly established itself as one of the leaders in the UK market, selling its products through major retailers including Boots, Tesco, Asda and Lloyds Pharmacy.