July 10, 2017 – In a strategic move by the Oregon dispensary chain Chalice Farms, they agreed to sell their four retail outlets to Golden Leaf Holdings, Ltd. (GLH) earlier this year. There were few details divulged about the value or make-up of their agreement at the time, but it indicated movement in the industry towards possible exit strategies already.
But today, on 7/10, a new Marketwired press release has gone out. The value of the deal is purportedly over 19 million dollars in a combination of cash and Common Stock.
Also in the deal, Chalice Farms owner William Simpson will become the new President of Golden Leaf once the deal is completed. The merger could be a sign of things to come in the burgeoning cannabis industry everywhere.
Don Robinson, CEO of GLH, commented in the press release, “With a strong branded platform that includes flower, edibles and oil products in addition to an established leading retail dispensary chain, the acquisition of Chalice Farms brings real strategic and financial value to GLH and our shareholders. We look forward to progressing with the integration of the two companies and the expected strategic benefits.”
But the deal is not actually finalized. The press release says GLH, “Has entered into definitive agreements in connection with and the closing of its previously announced acquisition … of the business of Chalice (“Chalice Farms”).”
Golden Leaf Holdings is also Oregon based and publicly traded as GLDFF on the U.S. OTC market. It is the parent company of GoldenXTRX, a extract supplier of vape cartridges and concentrates in the state. Their stock trades at around $0.22 recently, down from over $0.65 per share in October last year.
Original post from Oregon Cannabis Connection here. Syndicated by special permission.