Two weeks after initiating a stock buyback and acquiring a new cultivation facility in Nevada, Green Growth Brands, Inc. (CSE: GGB; OTCQB: GGBXF) just announced major changes in the company’s acquisition and expansion schedule.
This morning, Green Growth officially cancelled a previously announced $12 million controlling stake acquisition of Desert Rose (a joint combination of ZLJT LLC and Arizona Natural Pain Solutions). Neither side will pay any penalties for terminating the agreement that was initially reached back in January of 2019.
With that deal cancelled, but the company still focused on expanding as a multi-state operator, Green Growth now intends to move into Florida medical marijuana operations by acquiring all shares of Spring Oaks Greenhouses, Inc.
The arms length acquisition deal is valued at $54.65 million and will take place through a combination of issuing $17.1 million in stock at $2.35 per share, an additional convertible secured promissory note worth $11.4 million, as well as a payment of $26.15 million in cash.
The deal is slated to close this coming August after receiving regulatory approval and will see Green Growth expanding as a management services organization (MSO) into the growing Florida medical cannabis industry.
Green Growth’s Chief Executive Officer Peter Horvath had this to say about the announcement:
Spring Oaks was granted a medical marijuana treatment centre license for operating in Florida earlier this year, and includes the right to open up to 35 additional sites.
In addition to the Florida medical cannabis expansion, Green Growth currently operates in the U.S. through Seventh Sense Botanical Therapy shops, which focus on CBD products, as well as through the CAMP marijuana brand focused on luring in active lifestyle consumers.
On the multiple state expansion front, Green Growth acquired Just Healthy LLC in Northampton, Massachusetts earlier this year. Green Growth also recently issued the company’s fiscal Q3 financial reports, with the pertinent highlights for investors available at this location.
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