Canadian drug development company Lucy Scientific Discovery Inc. (NASDAQ:LSDI) is set to acquire e-commerce platform and plant-based wellness brands company BlueSky Wellness Inc. toward further entering the global wellness market with novel psychotropic products.

Last week, Lucy announced it was acquiring High Times Holding's IP, effectively enabling the iconic cannabis industry brand to trade on the Nasdaq.

For that transaction, Lucy exchanged 19.9% of its publicly traded shares. Following the new deal with BlueSky, its shareholders would receive 3.5 million shares of Lucy's stock plus annual earn-out payments based on a multiple of annual EBITDA in each of the next five years.

See also: Breaking: High Times To Go Public Via Deal With Nasdaq-Listed Lucy Scientific

The new acquisition would be completed within the next 90 days. At that time, the BlueSky team will market Lucy's MINDFUL brand as well as several psychotropic products for all three companies' brands through its e-commerce platform.

Lucy expects High Times' acquired IP and brand assets can reduce customer costs through cross-marketing, enhanced user experience and further launching into new legal markets.

After closing both agreements, Lucy would issue around 25 million outstanding shares. Projects would add a minimum of $22.1 (CA$30) million in revenue and $7.38 (CA$10) million in EBITDA, on a consolidated basis, for the first twelve months after closing.

BlueSky's Work And Lucy's Bullseye

In the past two years, the CPG company's e-commerce brands have reportedly generated over $14.7 (CA$20) million yearly, "well positioned" with products ranging from full-spectrum oils to edible goods.

Lucy views Bluesky's expertise in product design, formulation and online marketing as complementary to High Times' "expansive reach" via its products and platforms.

CEO Richard Nanula believes the addition of the former's portfolio and its team will allow Lucy to capitalize on revenue opportunities, strategically positioning the company for "substantial near and long-term growth."

See Also: Lucy's Deal With Nonprofit TheraPsil To Advance Psilocybin Access In Canada

Thus, the BlueSky acquisition, says Nanula, is "a testament" to Lucy's commitment to expanding and growing its business, adding revenue that diversifies the company and "should deliver significant value" to Lucy's shareholders.

On behalf of BlueSky, founder and CEO Fraser Macdougall says the "exciting" partnership marks a significant step forward in the company's path, and that the team is "thrilled" to work together with both the High Times and Lucy teams to "unlock" the brands' value.

"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," Macdougall said.

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Photo: Benzinga edit with photo by Pexels.