Just Healthy to provide Green Growth Brands a medical marijuana dispensary license and option to acquire real estate in Massachusetts' expanding cannabis market
COLUMBUS, OH, Dec. 11, 2018 /CNW/ - Xanthic Biopharma, Inc. d/b/a Green Growth Brands (CSE: GGB) (GGB or the Company) announced that it has executed a definitive agreement, yesterday, December 10, 2018, to acquire 100% of the membership interests of Just Healthy LLC (Just Healthy). Just Healthy holds provisional certificates of registration for a registered marijuana dispensary in Northampton, Massachusetts, a cultivation and processing site, also located in Northampton. The license allows for up to three total medical dispensaries with preferred treatment for future adult use.
"We are excited at the prospect of competing in a high potential cannabis markets in the United States," said Green Growth Brands CEO, Peter Horvath. Our team's experience in store operations and branding will allow us to bring a superior cannabis retail experience to Massachusetts."
This transaction introduces GGB to its first locations outside of Nevada, where the Company is building towards a leading market position, operating the premier Cannabis store, The+Source, in Las Vegas, NV and a grow and production facility in Post, NV. Last week, the Nevada Department of Taxation awarded GGB an additional seven retail cannabis dispensary licenses. The acquisition gives GGB the opportunity to extend its production and retail operations into the northeastern United States, bringing the region's consumers access to the Company's premier brands, products, and services.
"The potential to operate vertically will allow for stronger margins and the prospect of wholesale revenue from cultivation." continued Horvath.
Neil Phelan, co-founder and member, Just Healthy LLC, "Over the last year we have developed a close working relationship with the people of Northampton. We are excited to merge our efforts with Green Growth Brands and make significant investments in the Northampton community. Working closely with Mayor David Narkewicz, Councilor Marianne LaBarge, and the entire leadership team of the city of Northampton, we have developed a careful plan to headquarter and grow the business of Just Healthy in Northampton. We are proud to be residents of Northampton and to be creating career opportunities in this high growth industry for the people of Massachusetts. Northampton is playing a leading role in the development of the cannabis industry in Massachusetts and we are thrilled to be part of it."
As consideration for the membership interests of Just Healthy GGB will issue to the holders of such membership interests an aggregate of US$3,750,000(CAD$5,017,394) in 1,480,057 common shares of GGB and assume US$455,000(CAD$569,933) of Just Healthy corporate debt. Completion of the acquisition of Just Healthy, which is expected to occur in early January, 2019, remains subject to regulatory approval and customary conditions of closing.
As part of the same transaction, GGB will also gain the rights to acquire the real estate necessary for the development of a cultivation facility in Northampton, Massachusetts, currently held by Turnberry Partners LP.
About Green Growth Brands Green Growth brands expects to dominate the cannabis and CBD market with a portfolio of emotion-driven brands that people love. Led by Peter Horvath, the GGB team is full of retail and consumer packaged goods experts with decades of experience building successful brands. Join the movement at GreenGrowthBrands.com.
Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "intend", "forecast" and similar expressions. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving medical and recreational marijuana; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the marijuana industry in the United States, income tax and regulatory matters; the ability of the Company to implement its business strategies; competition; currency and interest rate fluctuations and other risks.
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SOURCE Green Growth Brands
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