Business
Chalice Brands Ltd. Acquires Cannabliss & Co. Retail Chain from Acreage Holdings Inc., Increasing Retail Footprint to 16 Stores in Oregon
Chalice Brands Ltd. Acquires Cannabliss & Co. Retail Chain from Acreage Holdings Inc., Increasing Retail Footprint to 16 Stores in Oregon.
About this update from Chalice Brands Ltd.
[{"type":"text","content":"\n PORTLAND, Ore., Sept. 16, 2021 (GLOBE NEWSWIRE) -- Chalice Brands Ltd. (CSE:CHAL) (OTCQB:CHALF) (“Chalice” or the “Company”), a premier consumer-driven cannabis company specializing in retail, production, processing, wholesale, and distribution, has entered into an asset purchase agreement and a services agreement effective September 16, 2021 (the \"Agreement\") to acquire four retail stores branded Cannabliss & Co. from Acreage Holdings, Inc. (\"Cannabliss\"), located in Portland, Eugene, and Springfield, Oregon for total consideration of US$6.5 million (less US$500,000 working capital surplus required to be left by the seller) or 0.8 times FY 2020 annualized revenue. With the Cannabliss acquisition, Chalice strengthens its customer base in the Oregon market, while also significantly increasing vertical margin contribution through the distribution of its Bald Peak flower, Chalice, Private Stash, RXO, and Elysium Fields branded products into the Cannabliss stores. The closing of the transaction is subject to approval by the OLCC (“Oregon Liquor and Cannabis Commission”) and the satisfaction of other closing conditions. “This is a fantastic opportunity for Chalice to edge closer to our goal of achieving our targeted market share in the state of Oregon while entering the Eugene market, and immediately enables the deployment of our Chalice products to more stores. Adding the Cannabliss retail stores increases our footprint from twelve to sixteen stores, represents nearly a 130% increase in retail footprint for this year alone. The Cannabliss team has done a tremendous job in Portland, Eugene, and Springfield, Oregon in building historic businesses and a strong reputation for friendly customer service – exactly aligned with what Chalice looks for in a partner. We look forward to working with their team as we continue to expand our reach and increase product availability in the market,” said Jeff Yapp, President and Chief Executive Officer of the Company. Transaction Highlights: Under the terms of the Asset Purchase Agreement (“APA”), Chalice will acquire the assets of the four Cannabliss retail dispensaries for total consideration of US$6.5 million, consisting of US$250,000 cash payment at the time of signing, offset by working capital surplus of US$500,000, pl...