Cannabis branding company Green Growth Brands is charting a path to grow in the United States and Canada through two deals totaling $74 million.
The Columbus, Ohio-based firm’s wholly owned subsidiary GGB Nevada entered into a $57 million deal to acquire Nevada Organic Remedies, a medical and retail firm based in Las Vegas.
The deal, which is pending regulatory approvals, is expected to close in early September.
Green Growth also announced plans to go public in Canada through the acquisition of Toronto-based Xanthic Biopharma.
That transaction, which is subject to shareholder approval, values Xanthic at 36 cents per share – roughly 22 million in Canadian dollars ($16.6 million) – a 56% premium based on the 20-day average share price.
The deal, which also requires regulatory approval by the CSE, is set to close in the fourth quarter should all go as planned, according to a news release.
Green Growth is a consumer products firm focused on medical and recreational cannabis brands in the United States and Canada.
Xanthic is the developer of a patent-pending process that makes THC and CBD water soluble – allowing it to be used in noncombustible and infused cannabis products.
The newly formed company will be called Green Growth Brands.
Tim Moore, CEO of Xanthic, will become director and CEO of the new company, and Gary Galitsky, president at Xanthic, will become director and president.
Should Green Growth choose to back out of the deal, it’s on the hook to pay Xanthic $250,000 and reimburse it for legal fees and other costs incurred. Xanthic must have at least $400,000 in working capital at the time the deal closes.
Lisa Bernard-Kuhn can be reached at [email protected]