Business
Golden Leaf Announces Signing of Definitive Agreements to Acquire, and Closing of, Acquisition of Chalice Farms in Oregon
Golden Leaf Announces Signing of Definitive Agreements to Acquire, and Closing of, Acquisition of Chalice Farms in Oregon.
About this update from Chalice Brands Ltd.
[{"type":"text","content":"\nGolden Leaf Announces Signing of Definitive Agreements to Acquire, and Closing of, Acquisition of Chalice Farms in Oregon\n\nGolden Leaf Announces Signing of Definitive Agreements to Acquire, and Closing of, Acquisition of Chalice Farms in Oregon\n\n TORONTO, ON--(Marketwired - July 10, 2017) - Golden Leaf Holdings Ltd. (\"GLH\" or the \"Company\") (CSE: GLH) (CSE: GLH.CN) (CNSX: GLH) (OTCQB: GLDFF), a leading cannabis oil solutions company built around recognized brands, is pleased to announce that it has entered into definitive agreements in connection with and the closing of its previously announced acquisition (the \"Acquisition\") of the business of Chalice LLC (\"Chalice Farms\"), a leading vertically integrated cannabis company in Oregon. Pursuant to the Acquisition, GLH has acquired all of the issued and outstanding membership interests of CFA Retail, LLC and all of the assets of CFA Productions, LLC, each a wholly-owned subsidiary of Chalice Farms. In connection with the Acquisition, the vendors will receive consideration from GLH comprised of, (i) US$19.25 million in cash and (ii) 83,418,687 common shares of the Company (\"Common Shares\"). In addition, Chalice Farms will also receive an amount equal to 1.25 times the revenues of the businesses being acquired for the year-ended December 31, 2017 payable in cash or Common Shares, subject to an obligation to pay in cash in certain circumstances. Following completion of the Acquisition, the former owners of Chalice Farms will collectively own approximately 28% of the outstanding Common Shares of the Company. In connection with the closing of the Acquisition, William Simpson of Chalice Farms has also been appointed President of GLH. AC Group Financial Inc. is acting as an advisor to the Company in connection with the Acquisition and the three other previously announced acquisitions being undertaken by the Company. Further to GLH's previously announced strategic acquisition program, the closing of the Acquisition is expected to drive financial and shareholder value. Chalice Farms is a leading vertically integrated cannabis business in Oregon, involved with the cultivation, extraction, refinement, marketing and sales of cannabis flower, edibles and oils. Chalice Farms has developed a branded portfolio of cannabis products that have generated significant market penetration ...