COLUMBUS, Ohio, July 09, 2019 (GLOBE NEWSWIRE)- Green Growth Brands Inc. (CSE: GGB; OTCQB: GGBXF) is pleased to announce that it has entered into a securities acquisition and contribution 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. 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).
The equity purchase price of the Transaction is US$310 million, and will be satisfied through the issuance of either GGB Common Shares (as defined below) or Exchangeable LP Units (as defined below), as more fully described below.
The Transaction is a part of GGB’s focused growth strategy. GGB is rapidly building its cannabidiol (CBD) business, including recently securing additional distribution through Designer Brands Inc., the parent company of DSW shoe stores (NYSE: DBI) and Abercrombie & Fitch Co. (NYSE: ANF), and is expanding its footprint of Seventh Sense Botanical Therapy shops from the current 61 to an expected 200+ by the end of calendar year 2019. GGB is also building its MSO network, which now includes the potential for up to 47 dispensary licenses in three key states.
The combination of Moxie and GGB would create one of the first cannabis companies to provide consumers a comprehensive product offering, including both CBD and tetrahydrocannabinol (THC) product lines and distribution that runs from mainstream retail to cannabis dispensaries, all led by management with decades of expertise and credibility.
Read more about Green Growth Brand’s CEO Peter Horvath here
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