US 22nd Century Group Acquires UK's RXP for CBD Expansion

Jan.26.2023
US 22nd Century Group Acquires UK's RXP for CBD Expansion
US 22nd Century Group acquires UK cannabis distributor RXP with 1,276 food applications for $650,000 cash plus revenue-based equity over three years.

US-based 22nd Century Group has acquired RX Pharmatech (RXP), a leading cannabinoid distributor in the UK that offers 1,276 food applications. The deal includes a cash and stock payment of $650,000 (approximately RMB 4.41 million) upfront, as well as equity payouts over a three-year period based on revenue.


The acquisition will ensure direct entry of our CBD products into the European market," said Mish, CEO of 22nd Century Group. "RXP has developed efficient application and compliance plans, ensuring approval for 1,276 new food applications for CBD products in the first round. As we move forward, we look forward to leveraging their leadership team's rich experience in the cannabis industry and strong relationships with UK and EU regulatory agencies.


Mish continued to say, "We expect that the acquisition of RXP will enhance the group's operational efficiency, leading to improvements in revenue and gross profit margins. In particular, by adding RXP to our recently opened distribution channels in the Netherlands, we will be able to expand our business scale and seize a larger market share in the ever-growing European consumer goods market.


RXP offers a range of products, including CBD isolates, as well as various finished products such as chewing gum, oil, droppers, candy, tinctures, sprays, and capsules.


The 22nd Century Group is a brand company that sells VLN cigarettes, holds valuable biotechnology intellectual property (IP), and offers highly specialized factory production lines in global end markets.



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