Lucy Scientific Discovery Expands its Reach in the Global Wellness Market with BlueSky Wellness Acquisition
Lucy Scientific Discovery Inc.
3 min read
VANCOUVER, BC / ACCESSWIRE / September 12, 2023 / Lucy Scientific Discovery Inc. (NASDAQ:LSDI), a publicly traded company focused on the development, sale, delivery, and manufacturing of psychotropic products, recently announced its acquisition of all High Times IP and brand assets - has just announced the acquisition of BlueSky Wellness Inc., along with the full BlueSky portfolio of brands adding psychotropic products to its catalog, expanding its footprint into the global wellness market.
The BlueSky Wellness family of wellness focused ecommerce brands includes Keoni, Keoni Sport, Blush Wellness and AMMA Healing, which have generated over $20 million in revenue in each of the last two years. BlueSky is well-positioned with a variety of products that range from full-spectrum oils to edible goods, gummies, topicals and beauty products, all of which complement the products and platform offered by High Times.
Lucy Scientific Discovery Inc CEO Richard Nanula shared that his team is pleased about the acquisition and the potential opportunities it presents. "The addition of the BlueSky portfolio and its team allows us to capitalize on revenue opportunities," Nanula states. "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."
Once the acquisition has been finalized, the team at BlueSky will be marketing the MINDFUL brand by Lucy, along with a diverse range of psychotropic products from all three brands - Lucy, BlueSky, and High Times. All will be able to utilize Lucy's e-commerce platform, and the High Times IP and brand assets are expected to let Lucy reduce customer acquisition costs by cross-marketing brands and products. In addition, this has the potential to enhance each user experience; and monetizing the IP will let Lucy launch into new legal markets. Hightimes.com enjoys an expansive reach already, and now BlueSky adds its expertise in product design, formulation and proficiency in online marketing.
The acquisition agreement means that BlueSky shareholders will receive 3.5 million shares of Lucy Scientific's stock, as well as annual earn out payments based on a multiple of annual EBITDA in each of the next five years. And once Lucy closes on both the High Times and BlueSky Wellness transactions, Lucy Scientific expects to have approximately 25 million shares issued and outstanding; and projects the two transactions on a consolidated basis to add a minimum of $30 million of revenue and $10 million of EBITDA for the first twelve month period after closing. The team at Lucy is working closely with their BlueSky counterparts and report that the acquisition is expected to be finalized within 90 days.
"This exciting partnership marks a significant step forward in our company's journey," says BlueSky founder and CEO Fraser Macdougall. "We are thrilled to work together with both the High Times and Lucy teams to unlock the value of the brands. 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 US market, the possibilities for growth are abundant."
BlueSky is led by a team of seasoned CPG executives with experience at Fortune 500 companies and have built and exited a number of successful cannabis, hemp and psychedelic companies over the last decade. BlueSky brings a unique suite of marketing capabilities, brand-building prowess and a highly-skilled team with extensive relationships within the Canadian cannabis and the broader CPG industry.
About Lucy Scientific Discovery Inc.
Lucy Scientific Discovery Inc. (NASDAQ:LSDI) is a Nasdaq-listed company with holdings and operations in a variety of psychotropic businesses. The company holds a Controlled Drugs and Substances Dealer's License granted by Health Canada's Office of Controlled Substances. Lucy Scientific Discovery Inc. and its wholly-owned subsidiary, LSDI Manufacturing Inc., operate under Part J of the Food and Drug Regulations promulgated under the Food and Drugs Act (Canada). This specialized license authorizes LSDI to develop, sell, deliver, and manufacture pharmaceutical-grade active pharmaceutical ingredients (APIs) used in controlled substances and their raw material precursors. With a focus on pioneering innovative therapies for patients in need, Lucy Scientific Discovery Inc. is dedicated to advancing the understanding and applications of psychotropic medicines, improving mental health outcomes, and enhancing well-being for individuals worldwide.
BlueSky Wellness is a growing platform of plant-based wellness brands that is focused on developing natural, psychotropic products that help fuel a healthy, active lifestyle. BlueSky was founded by a team of CPG and cannabis executives.
Since its founding 46 years ago, High Times has grown to be one of the world's most well-known cannabis brands - championing the lifestyle and educating the masses on the benefits of this natural flower. From humble beginnings as a counterculture lifestyle publication, High Times has evolved into growing a network of cannabis dispensaries, the host and creator of events like the Cannabis Cup, the producer of globally distributed merchandise, participant in international licensing deals, and provider of content for a multitude of fans and supporters. In the world of cannabis, High Times is a trusted arbiter of quality.
