Business
Green Growth Brands to Create First '360 Degree' Cannabis Company Through a Combination with MXY Holdings LLC
Green Growth Brands to Create First '360 Degree' Cannabis Company Through a Combination with MXY Holdings LLC.
About this update from Green Growth Brands Inc
[{"type":"text","content":"\nMoxie has developed award-winning brands and a loyal customer base by producing high-quality and consistent cannabis concentrates and related products across multiple marketsMoxie has a current cash balance of ~US$39 million, allowing it to fund its business planOn closing, the combination will bring together two best‐in‐class cannabis operators and create a superior coast‐to‐coast cannabis player, with immediate access to nine key states including California, Florida, Nevada and Massachusetts, and up to 16 states total including Moxie’s expansion potential (and not including GGB’s CBD kiosk locations)Potential to create unparalleled vertical distribution network across the U.S. by combining GGB’s expected 200+ CBD mall-based shop locations and Moxie’s 250+ retail dispensary partner networkMultiple potential revenue and cost synergy opportunities exist, including leveraging Moxie’s relationships wholesaling to MSOs, supply chain efficiencies and cost rationalizationAll equity interest offer allows shareholders of both entities to participate in the potential future growth and upside of the combined companyGGB will undertake a reorganization whereby it creates a new limited partnership to hold its existing assets and the acquired assets COLUMBUS, Ohio, July 09, 2019 (GLOBE NEWSWIRE) -- Green Growth Brands Inc. (GGB or the Company) (CSE: GGB; OTCQB: GGBXF) is pleased to announce that it has entered into a securities acquisition and contribution agreement (the Agreement), dated as of July 8, 2019, with, among others, MXY Holdings LLC (Moxie) under which a new Ontario limited partnership, of which GGB will be the general partner (GGB LP), will acquire the operating companies of GGB and the issued and outstanding units of Moxie, an arm’s length third party, in an all-equity interest transaction (the Transaction).  As part of the Transaction, GGB will also be directly acquiring shares of MXY C, INC. (MXY C) and MXY D, INC. (MXY D), Delaware entities within the Moxie structure, and interests in two entities, PurePenn LLC and Pure CA, LLC (collectively, the Pure Entities), with which Moxie has current acquisition agreements (subject to regulatory approval). \n The equity purchase price of the Transaction is US$310 million (the Purchase Price), and will be satis...