Golden Leaf Holdings (CSE:GLH; OTCQB:GLDFF) announced its intention to acquire two cannabis cultivation facilities with licenses, one in Nevada and the other in California, owned by the same operator.
As quoted in the press release:
The Nevada facility is currently operational and generating positive cash flow, and the California facility is provisionally licensed for cultivation.
Under the terms of the LOI, Golden Leaf would pay US$8.5 million in cash at closing, plus an as of yet undetermined number of shares that equals 25 [percent] of the total issued and outstanding shares of common stock of GLH on the closing date.
“Signing this LOI provides Golden Leaf with an opportunity to secure an agreement that would significantly expand our cultivation capabilities in the high-growth Nevada and California markets, both of which have commenced adult-use sales within the past 12 months,” commented William Simpson, CEO of Golden Leaf. “This opportunity to acquire an established enterprise, with strong brand recognition and positive cash flow generation is consistent with our strategy to build a vertically integrated operation spanning cultivation, processing and retail-driven sales, and to utilize accretive acquisitions to enable Golden Leaf to harvest highly-desirable boutique strains as a key component of a multi-prong growth strategy that can be applied across multiple jurisdictions.”