Closest to the Pin, page-73

prior to the acquisition the company said it expected cfda approval within 2 months for the cobbity label. They wouldn’t be saying that if they didn’t have some pretty strong evidence that they were a significant way through that rigorous testing process. So I’m not sure i agree that the acquiring is the ticket. I reckon the acquisition is about an infant brand that has clearly penetrated the market but hasn’t touched the surface of what is possible. With a better distribution channel set up (specialists) and more funds to drive growth it could see huge growth. Add or that the fact that it will probably be likely that it will get the CFDA license (as in sure they wouldn’t have acquired it unless they felt it highly likely)... and the deal makes a lot of sense. But I’m not sure it’s fair to imply they needed to acquire a business to grab the license. Seems to me they have been busy for 12 months getting ready for cobbity to be licensed in its own right. A new brand and an existing brand both targeting various channels is probably a pretty good strategy though.