Charlotte's Web Holdings (OTC: CWBHF) announced Monday that it is acquiring fellow cannabidiol (CBD) products maker Abacus Health Products in an all-stock deal. Abacus shareholders will receive 0.85 shares of Charlotte's Web stock for each Abacus share they own. The deal values Abacus at approximately 99 million Canadian dollars. Abacus Health sells over-the-counter topical products that contain active pharmaceutical ingredients and hemp extract. Combined, the two companies expect to account for 34.7% of the U.S. cannabidiol (CBD) market in the food/drug/mass channel. Charlotte's Web products are currently in 11,000 retailers across the country while Abacus Health has a presence in 12,000 locations. Accounting for overlap, the post-merger company will now have its products carried in 15,000 locations. In addition, Abacus Health has access to 16,5000 health-care practitioners. Image source: Getty Images. "Because most of Abacus's products are positioned in adjacent categories, our combined distribution reach has limited shelf overlap," notes Deanie Elsner, CEO of Charlotte's Web. "Together we are the most developed CBD company across every channel and segment and positioned to accelerate our growth and extend our market share." The boards of directors of both companies have approved the transaction, but it still requires the approval of Abacus Health shareholders. The companies anticipate that the deal will close during the second quarter. Shares of Charlotte's Web were up as much as 8% on Monday. Over the past 12 months, the stock has nosedived 82% right along with other cannabis stocks. The Horizons Marijuana Life Science ETF (OTC: HMLSF) was down 77% over the same period. Here's The Marijuana Stock You've Been Waiting ForA little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom. And make no mistake – it is coming. Cannabis legalization is sweeping over North America – 11 states plus Washington, D.C., have all legalized recreational marijuana over the last few years, and full legalization came to Canada in October 2018. And one under-the-radar Canadian company is poised to explode from this coming marijuana revolution. Because a game-changing deal just went down between the Ontario government and this powerhouse company...and you need to hear this story today if you have even considered investing in pot stocks. Simply click here to get the full story now. Learn moreDavid Jagielski has no position in any of the stocks mentioned. The Motley Fool recommends Charlotte's Web. The Motley Fool has a disclosure policy.Source