In a deal combining two Oregon marijuana businesses, Golden Leaf Holdings has signed an agreement to acquire Chalice Farms, a vertically integrated company that operates four medical and adult-use retail outlets.
The acquisition is the latest sweeping through the cannabis industry.
Golden Leaf, which produces and distributes marijuana flower and oil goods through its subsidiaries, will pay $19.3 million in cash and 83.4 million shares of its common stock to acquire Chalice Farms. Golden Leaf trades on the over-the-counter markets under the ticker symbol GLDFF.
Under the deal, Chalice Farms also will receive an amount equal to 1.25 times the 2017 revenue of the businesses being acquired, Golden Leaf said in a news release. The amount is payable in cash or shares of Golden Leaf’s stock.
In addition to operating four stores, Chalice Farms cultivates, extracts and manufactures cannabis-infused products. The company plans to expand to Washington state, according to the Chalice Farms website.
Once the deal is complete, Chalice Farms’ former owners will together control about 28% of Golden Leaf’s outstanding shares. The company’s CEO, William Simpson, will become Golden Leaf’s president.
Golden Leaf has been in expansion mode, having acquired cultivation and extraction licenses in Nevada in March.
