Business
Chalice Brands Ltd. Enters Into Amended Agreement to Acquire Cannabliss & Co. Retail Locations
Chalice Brands Ltd. Enters Into Amended Agreement to Acquire Cannabliss & Co. Retail Locations.
About this update from Chalice Brands Ltd.
[{"type":"text","content":"\n PORTLAND, Ore., July 05, 2022 (GLOBE NEWSWIRE) -- Chalice Brands Ltd. (CSE: CHAL) (OTCQB: CHALF) (the “Company” or “Chalice Brands”), a premier consumer-driven cannabis company specializing in retail, production, processing, wholesale, and distribution, today announces that the Company signed an amending agreement July 1, 2022 (the “Amending Agreement”), to improve the terms of its previously disclosed Asset Purchase Agreement (the “Original Agreement”), which was originally executed on September 16, 2021, to acquire four retail stores branded Cannabliss & Co. (\"Cannabliss\") from Acreage Holdings, Inc. (\"Acreage\"), for total consideration of US$6,500,000. The closing of the transaction as amended by the Amending Agreement (the “Transaction”) is subject to approval by the Oregon Liquor and Cannabis Commission (“OLCC”) and the satisfaction of other closing conditions. The OLCC approval is expected to occur within the next 30 days. “Amending the original transaction allows us to better match the considerations to be paid with the expected cashflows of Cannabliss. This transaction represents an important step as we continue to increase our presence in Oregon and refine the performance of Cannabliss’ stores under the guidance of our leadership team,” said Jeff Yapp, President and Chief Executive Officer of Chalice Brands. “We look forward to favourably leveraging this transaction to drive revenue growth for our shareholders, employees, and the communities we serve.” Transaction Agreement Upon execution of the Amending Agreement, Chalice Brands will acquire the assets of the four Cannabliss branded retail locations for total consideration of US$6,500,000 (the “Purchase Price”), consisting of a US$250,000 payment already made at the time the original agreement was signed, plus an additional US$100,000 in cash at closing, offset by a deduction of US$300,000 from the Purchase Price to settle the accounts payable to Chalice Brands. Chalice Brands will pay the balance owed of US$5,850,000, by way of a 36-month secured promissory note (the “Note”) carrying accrued interest at a rate per annum equal to 12%. Chalice Brands shall make the following balloon payments to Acreage: (i) US$1,000,000 on January 1, 2...