Business
Golden Leaf Holdings to Acquire Premier Extractor Tozmoz
Golden Leaf Holdings to Acquire Premier Extractor Tozmoz.
About this update from Chalice Brands Ltd.
[{"type":"text","content":"\n Acquisition Allows for Expanded Extraction Capabilities to Support Growth TORONTO, Feb. 03, 2020 (GLOBE NEWSWIRE) -- Golden Leaf Holdings Ltd. (CSE: GLH) (OTCQB: GLDFF) (“Golden Leaf” or the “Company”), a pioneering cannabis solutions company and dispensary operator built around the recognized brands of Chalice Farms, has signed a definitive agreement (“Agreement”) for its wholly-owned subsidiary, TZ Acquisition, Inc., an Oregon corporation (“Buyer”), to acquire Tozmoz, LLC, an Oregon limited liability company (“Seller”). Founded in 2015 as one of the first Oregon Liquor Control Commission (“OLCC”) licensed processors in Oregon, Tozmoz established itself as one of the premier cannabis extractors in the state.  Tozmoz offers multiple extraction processes including CO2, hydrocarbon and ethanol, and both short path and wiped film distillation. Additionally, Tozmoz provides product manufacturing and formulation, as well as packaging services, providing clients OLCC-approved products ready for wholesale distribution and retail sale. “We have been working with Tozmoz for years now and this acquisition fits squarely into our product-focused business strategy,” said Jeff Yapp, Golden Leaf Holdings’ CEO. “The core of this business is about the highest quality products on the market, like our Elysium Fields line of live resin cartridges and tinctures and our recently launched Chalice Farms RXO lines. This acquisition will allow us to take what we’ve been doing well, and continue to build and further expand our diverse portfolio of products. In our ‘crawl, walk, run’ model of business development, we believe Tozmoz is at the “run” stage.” Pursuant to the terms of the Asset Purchase Agreement, Golden Leaf purchased substantially all of the assets of Tozmoz, including the facility located in Clackamas, which serves as the headquarters for multiple extraction options as stated above, for consideration of US$2.8 million consisting of cash and advances totaling US$675,000, an earnout of up to US$400,000 and GLH stock (29,166,667 shares at US$.06 per share). GLH has previously made certain payments to Tozmoz so that only approximately US$227,000 of cash will be due at closing. The earnout of US$400,000 may b...