Tenacious Labs: New London-based CBD firm joins race for acquisitions in fast-growing space

New London-based CBD vehicle Tenacious Labs launched with a US acquisition today, joining the race for brands and product launches as the cannabinoid space heats up on both sides of the Atlantic.

CBD stands for cannabidiol - the non-psychoative compound in cannabis plants. It is used medicinally to treat conditions including insomnia. Bank of America Merrill Lynch has estimated its global consumer market is set to reach a value of around $39 billion by 2032.

Tenacious Labs, which is set to bring its first brands to market in the UK this summer, announced on Tuesday that it has bought Denver-based female wellbeing CBD product-maker, Press Pause.

Press Pause makes CBD capsules, bath bombs and balms. Its acquisition gives the company an established direct-to-consumer brand in the US, and it is to shortly launch the brand’s products in the UK. Tenacious Labs said that the move will "ignite its buy-and-build strategy to become the leading global consumer cannabinoids brand".

The company plans to launch other products this summer, including Walker & Morland, a CBD brand created to help those who suffer from chronic pain and anxiety; and Hoo Raa, a CBD product aimed at those looking to manage mood swings.

Tenacious Labs is owned by search fund Delarki, which has committed £9.5 million of investment to date into the company to “support its buy and build strategy”.

The business is headed up by chief executive Nicholas Morland and chief commercial officer Adrian Clarke, who is the chairman of Delarki.

Morland said: "Our first acquisition, this is a major milestone in our strategy of building and developing a global portfolio of consumer cannabinoid brands. It brings an established US brand to the UK as the market enters its next phase of growth and consolidation.

"Tenacious Labs is incredibly ambitious and we are working hard to identify and integrate exciting and emerging brands within the sector. We have a pipeline of acquisition opportunities ahead of us, and expect to announce further developments in the near future.”

The cannabinoid market has been heating up in recent months.

GW Pharmaceuticals, the Cambridge-based medicinal cannabis pioneer behind epilepsy treatment Epidolex, was snapped up by rival healthcare group Jazz in a £5.3billion deal.