(Image Credit - OregonDOT)
Oregon-focused cannabis products company, Golden Leaf Holdings Ltd. (CSE:GLH)(OTC:GLDFF) today announced that they have closed their previously announced acquisition of Chalice LLC ("Chalice Farms"), a vertically integrated Oregon cannabis company.
Golden Leaf has acquired all of the issued and outstanding membership interests of CFA Retail, LLC and CFA Productions, LLC, each a wholly-owned subsidiary of Chalice Farms.
The vendors will receive $19.25 million USD in cash and 83,418,687 common shares of Golden Leaf.
Chalice Farms will receive an amount equal to 1.25 times the revenues of the businesses being acquired for the year-ended December 31, 2017 payable in cash or Common Shares (with a requirement to pay cash in certain circumstances)
Upon completion of the acquisition, the former owners of Chalice Farms will collectively own roughly 28% of Golden Leaf's outstanding shares.
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Chalice Farms is a leading vertically integrated cannabis business in Oregon, involved with the cultivation, extraction, refinement, marketing and sales of cannabis flower, edibles and oils. This strategic focus fits well with Golden Leaf's focus on both Oregon and extracts. Additionally, Chalice Farm's branded products will strengthen and broaden GLH's brand portfolio.
This acquisition also gives Golden Leaf exposure to a retail dispensary chain in Oregon. Because of the aformentioned reasons and more, management believes that the acquisition will result in both revenue and cost synergies.
Golden Leaf Holding's CEO, Don Robinson
"With a strong branded platform that includes flower, edibles and oil products in addition to an established leading retail dispensary chain, the acquisition of Chalice Farms brings real strategic and financial value to GLH and our shareholders. We look forward to progressing with the integration of the two companies and the expected strategic benefits."
In midday trading Monday, shares of Golden Leaf Holdings on the CSE are up more than 3.5%. The company's OTC Markets listing is up more than 4% on light trading volume. Year-to-date, shares of Golden Leaf on the Canadian Securities Exchange are down roughly 20%.
Learn more about this extracts and Oregon focused company by checking out their marijuana stock profile in The Daily Marijuana Observer's cannabis stock database.
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