Cannabis One will acquire Nevada state-issued cannabis cultivation and manufacturing licenses, the popular flower brand Fleur and the award-winning, cannabis-infused product brands, Evergreen Organix and EG.O
Cannabis One Holdings Inc () (OTCMKTS:CAAOF) announced Monday a series of agreements to acquire Evergreen Organix, a Nevada-based cultivation, manufacturing and brand house.
The Denver-based company said in a statement that they had three definitive agreements to acquire certain assets of Nevada-based LV 3480 Partners LLC, 3480 Investors, Inc., and Agro Finance LLC, collectively known as Evergreen Organix.
Shares of the company rose nearly 6% on Monday to sit at C$4.61 in Canada and nearly 7% to US$346 in the US.
READ: Cannabis One acquires well known cannabis infused products company Honu
As part of the agreements, Cannabis One will acquire Nevada state-issued cannabis cultivation & manufacturing licenses, the popular flower brand Fleur and the award-winning, cannabis-infused product brands, Evergreen Organix and EG.O.
Evergreen Organix
Evergreen Organix has won a number of cannabis industry awards for its branded product line, including Best CBD Flower for its Fleur-branded Fire Angel strain; and Best Edible for its Evergreen Organix-branded Chocolate Chip Cookie at the 2018 Jack Herer Cup.
The Nevada-based company has established manufacturing and distribution relationships across six US states, including Nevada, California, Colorado, Washington, Oregon, and Montana.
"Building on the momentum of our recent announcements related to the acquisition of the 'Honu' and 'Fat Face Farms' brands, Cannabis One is now excited to bring the Evergreen Organix family under the CBIS banner," said Cannabis One CEO Jeffrey Mascio.
The acquisition provides Cannabis One with a significant brand presence in the Nevada medicinal and recreational marketplace and more than 27,000 square feet of additional cultivation capacity, the company said in a statement.
Evergreen Organix president Jerry Velarde will join Cannabis One as its Chief Marketing Officer.
Acquisition terms
Under the terms of the agreement with LV 3480 Partners LLC, Cannabis One will acquire all intellectual property, product formulations, warehousing and logistics operations, and multi-state intellectual property licensing and manufacturing agreements with contracted partners for around US$27 million, less any funds previously advanced in Class B super voting shares of Cannabis One.
The agreement with 3480 Investors Inc gives Cannabis One two Nevada state-issued cultivation and manufacturing licenses for US$15,000,000, comprised of US$14,355,000 in assumed liabilities and US$645,000 in cash.
Cannabis One will also acquire all cultivation and manufacturing equipment from Agro Finance LLC for US$8,103,117 in cash.
Cannabis One Holdings is focused on aggregating and optimizing popular cannabis brands throughout North America.
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