Cannabis firm Slang lists on Canadian exchange after buying Organa Brands

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Unlike many of its predecessors, Slang Worldwide (CSE: SLNG) saw a relatively stable first day on the Canadian Securities Exchange, opening at 2 Canadian dollars ($1.51) and closing at CA$1.99.

The branded consumer products cannabis company, went public Tuesday on the Canadian Securities Exchange with an implied market value of $541 million (CA$718 million).

The public trading debut follows the company’s acquisition of Denver-based Organa Brands.

According to Green Market Report, Toronto-based Slang paid upward of $200 million to acquire Organa Brands, a multistate concentrates and infused product manufacturer and the maker of OpenVape products.

Green Market Report noted that Organa Brands reported:

  • Nearly $12 million in revenue for the nine months ending Sept. 30, 2018.
  • $4.3 million in operating expenses last year.
  • Net income of $4.7 million for the first nine months of 2018.
  • More than $170 million in retail revenue for OpenVape products since 2014.

Slang also paid $16 million in a cash-stock deal to acquire NWT Holdings, also known as Firefly, a vape product manufacturer.

Firefly reported $3.1 million in revenue for the nine months ending Sept. 30, 2018, but reported a net loss of $440,000 for that time period.

Slang CEO Peter Miller and President Billy Levy co-founded Mettrum Health, which was acquired by Canopy Growth Corp. in December 2016 for $323 million.