GABY Inc., the parent company of San Diego's Mankind Dispensary, announced it will not proceed with the proposed acquisition of three HempFusion Wellness Inc. brands.
HempFusion has reportedly ceased its manufacturing, research and development operations; has terminated the majority of its employees; and will no longer ship its products and accept new orders.
GABY reported in a press release that HempFusion is exploring its options under applicable bankruptcy and insolvency legislation.
In April, GABY announced plans to acquire the HempFusion, Sagely Naturals and apothecanna brands through a share purchase agreement. GABY had planned to offer HempFusion Wellness just over 13 million shares in the transaction.
The company reported HempFusion’s brands generated $5.4 million in net revenue in 2022.