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Golden Leaf Closes Acquisition Of Oregon Cannabis Business

July 10, 2017

 (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.

 

Deal Terms 

 

  • 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. 

 

Now Read: Sharing the Pie - Dilution and Marijuana Stock Investing

 

 

Strategic Opportunities 

 

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. 

 

Management Commentary

 

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."

 

Market Reaction

 

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%

 

Conclusion

 

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

 

Be sure to subscribe to one of more of The Daily Marijuana Observer's free newsletters so you never miss an important cannabis industry update. Also, don't forget to connect with The Daily Marijuana Observer on Facebook, Twitter and Instagram.

 

D/M/O

 

Disclaimer
 
Investing in nanocap, microcap, and small cap stocks is highly speculative. The publishers of DailyMarijuanaObserver.com are not registered as Investment Advisors or Broker-Dealers in any jurisdiction whatsoever. The information contained on DailyMarijuanaObserver.com (“this site”) has been prepared solely for informational purposes. Nothing on the site is an offer or solicitation to buy or sell securities. Investors should seek financial advice regarding the appropriateness of investing in any securities mentioned from their financial advisor.​

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Disclaimer: Except for the historical information and data presented herein, matters discussed in articles on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future performance or achievements expressed or implied by such coverage. Smoke Show Ventures, Inc., which owns The Daily Marijuana Observer, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Smoke Show Ventures, Inc., which owns The Daily Marijuana Observer, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. Before making specific investment decisions, readers should seek their own professional advice and that of their own professional financial adviser. Smoke Show Ventures, Inc. or its affiliates, which owns The Daily Marijuana Observer, may be compensated for its services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.dailymarijuanaobserver.com/legal-disclaimer/.