After the failed Aphria acquisition attempt earlier this year, Green Growth Brands Inc. (CSE: GGB; OTCQB: GGBXF) decided to go another route and today announced a merger with MXY Holdings LLC (better known as Moxie).
The deal will see the creation of GGB LP, an Ontario-based limited partnership featuring Green Growth as the general partner.
To continue operations with both existing and acquired assets, GGB LP will acquire Green Growth as well as all issued and outstanding units of Moxie.
That latter part of the acquisition sees GGB LP gaining MXY C INC and MXY D INC, as well as interests in PurePenn LLC and Pure CA LLC, which Moxie had been in the process of acquiring.
The deal is valued at $310 million and will take place through exchangeable LP units and the issuance of Green Growth Brands shares.
Green Growth and Moxie coming together is intended to expand the portfolios of both entities to create a more comprehensive catalog of cannabis and CBD offerings with a distribution platform aimed at standard retail stores as well as marijuana dispensaries.
Commenting on that combination of assets for increased growth to reach more customers on a multi-state level, Green Growth’s Chief Executive Officer Peter Horvath stated:
Upon closing, the short-term effect of the merger will see GGB gaining immediate access to additional sites in California, Florida, Nevada, and Massachusetts. That expansion is expected to reach a total of 16 additional US states in the months following the deal’s closing.
Prior to the merger plan’s announcement, Green Growth has been busy opening dozens of new CBD stores through deals with Brookfield Properties and Abercrombie & Fitch. If expansion continues at its current rate after the re-organization as GGB, the company expects to open 200 stores across the US by the end of 2019.