ROXBORO – Open Book Extracts, a two-yearold industrial hemp company that controls the entire supply chain from soil to oil, on Monday disclosed it has reached terms on a deal to acquire Chilmark Labs, a cannabinoid research and development/manufacturer.
The deal follows the recent raising of $6 million and the declaration that the funding would be used to scale up the startup based in Roxboro.
Financial terms of the Chilmark deal were not disclosed.
The acquisition also will include a Chilmark affiliate in Israel.
“We are seeing a proliferation of products utilizing and highlighting the rare, minor cannabinoids to replace the one-size-fits-all approach that CBD offers,” said David Neundorfer, chief executive officer of Open Book Extracts, in the announcement.
Cannabinoids are definied by Oxford Languages as “any of a group of closely related compounds which include cannabinol and the active constituents of cannabis.”
“The CPGs and nutraceutical companies only beginning to enter the CBD industry will not accept an ingredient with a cannabinoid profile that varies from batch to batch. The customers of tomorrow will demand precision and consistency and will want access to custom formulations backed by research. Open Book Extracts is proud to join forces with Chilmark Labs to provide the industry with the most efficacious, pure and high-quality ingredients, delivering the results that companies and consumers deserve.”
Andrew Salzman, founder and chair of Chilmark, will join Open Book Extracts as its chief science officer.
“Together, the merged companies will bring to market commercial-scale production of precise, consistently formulated custom cannabinoid blends, and spearhead research and development (R&D) into the efficacy of custom formulations to deliver targeted therapeutic outcomes,” Open Book Extracts explained.
“With research and production facilities located in Israel and the United States, Chilmark Labs has developed proven methods to efficiently manufacture rare cannabinoids from hemp and citrus … By making these previously unattainable rare cannabinoids more accessible, Chilmark Labs is unlocking new therapeutic possibilities and developing formulations to maximize the nutraceutical and pharmacological properties of rare cannabinoids.”
Salzman sees an opportunity to “address a host of currently unmet conditions” by combining the companies.
“There is a treasure trove of therapeutic potential in the minor cannabinoids, and it’s an honor to make these available for scientific research, so that as an industry, we can bring to market plant-based products that address a host of currently unmet conditions,” Salzman said.
“I expect the collaboration between Chilmark Labs and Open Book Extracts to support meaningful scientific advancements in this arena.”
Dave Neundorfer and Oscar Hackett launched Open Book Extracts in 2018.
Original Post By: WRAL Tech Wire