Viaspace has announced that it is preparing to conclude an acquisition of Elite Therapeutics.

Viaspace first signed a nonbinding letter of intent (LOI) to purchase the cosmetics firm in December 2014. The deal was postponed in May 2015 to enable both firms to concentrate on their respective core businesses.

Elite Therapeutics sells skincare, haircare and anti-ageing personal care products. In 2018, the company launched a hemp-derived product known as CBD Recovery Crème.

In May 2018, Viaspace formed special purpose company Viaspace California for the production of hemp in Southern California. Elite Therapeutics will be a consumer of Viaspace California’s hemp-derived CBD.

“We are projecting that the acquisition of Elite Therapeutics will add more than $300,000 of revenue to Viaspace in 2019.”

Commenting on this latest announcement, Viaspace board chairman and acting CEO Dr Kevin Schewe said: “In December 2018, the US farm bill took hemp from a Schedule 1 controlled substance to an agricultural commodity.

“We are working to position Viaspace to generate revenues from three lines of business, including: top-line cosmetics and luxury CBD-containing cosmetics; hemp-related revenue, including CBD oil; and the sale of hemp seeds along with continued commercialisation of Giant King Grass (GKG) for animal feed and renewable biomass/bioenergy.

“We are projecting that the acquisition of Elite Therapeutics will add more than $300,000 of revenue to Viaspace in 2019 with plans to grow the luxury CBD cosmetic product line moving forward and create economies of scale through our partnership with Viaspace California, Inc.”

Viaspace said that the all-stock acquisition of Elite Therapeutics will be finalised within one month.

Elite Therapeutics was established in 2007 as Bad Love Cosmetics Company. In late 2010, the company started doing business as Elite Therapeutics.