Continuing a rapid string of kiosk openings and company buy outs, today Green Growth Brands (CSE: GGB; OTCQB: GGBXF) officially closed the acquisition of Spring Oaks Greenhouses, Inc.
By completing the Spring Oaks deal, Green Growth will be able to rapidly move into the Florida medical cannabis industry, as Spring Oaks already has a license in hand to run dozens of potential dispensary locations.
The terms of the deal were changed just before closing, with the total acquisition now valued at slightly north of $54,000,000. That total adjusted price includes the following cash payments, stock issuance, and promissory notes:
- A previously paid $1.3 million deposit
- An immediate $2 million cash payment
- An upcoming $3 million payment at the end of August
- The issuance of 15.2 million Green Growth shares (7.1 million at $2.39 a share and 8.1 million at $1.27 a share)
- A two year convertible note for $11.4 million (with 15% interest payable after the first year)
- A one year convertible note for $5.8 million (with a 15% interest rate to mature 12 months after closing)
The price also includes a $500,000 finder’s fee to Jeremy Giles for assisting in brokering the deal, with Giles additionally signing a consulting agreement with Green Growth Brands to aid in navigating government relations.
With Spring Oaks now under the Green Growth banner, the company has 47 current and upcoming dispensary locations across multiple states. Chief Executive Officer Peter Horvath commented on the closed deal:
Green Growth currently splits its operations between both cannabis brands in states where recreational or medical usage has been legalized, as well as nationwide CBD offerings through the Seventh Sense Botanical brand.
The company has opened more than 50 Seventh Sense kiosks in shopping malls around the nation in 2019, with plans in the works to catapult that number to 200 by the end of the calendar year.
In other recent news, the company announced a merger with Moxie (MXY Holdings LLC) last month, with Green Growth serving as the general partner under the new title GGB LP.
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