- Acquisition
includes 100 percent of issued and outstanding shares of privately-held
HemPoland in an immediate accretive cash and share transaction worth $15.5
million with an additional $10.3 million committed to R&D, global expansion
- Agreement
opens European gateway with distribution channels to over 750 million
people and sales in over 700 locations across 13 countries
- In
2017, HemPoland produced more than 32,000 kg of organic dried flower and
310 kg of organic CBD oils from over 1,250 acres of cultivation
- Deal
accelerates TGOD’s strategic plan to become the world’s largest organic
cannabis brand
In a move that dramatically accelerates its strategic entry
into Europe’s lucrative organic cannabis market, The Green Organic Dutchman
Holdings Ltd. (TSX: TGOD) (OTCQX: TGODF) announced on Tuesday that it has
entered into a definitive agreement to acquire HemPoland, a European
manufacturer and marketer of premium organic CBD oils (http://ibn.fm/tfHhi). The $25.8
million deal, which includes an immediate accretive cash and share transaction
in addition to an infusion of funding for research and development, gives the
cannabis-focused research and development company an enviable foothold in Europe’s
multibillion dollar cannabis market, as detailed by Brian Athaide, CEO of TGOD.
“HemPoland is a key component to a number of strategic
acquisitions and planned partnerships focused on expanding our global
distribution network. This acquisition will significantly add to the Company’s
top and bottom line,” Athaide said in announcing the agreement. “Gaining market
share with CBD products now, in the EU, with over 700 locations allows TGOD to
establish immediate brand awareness across all verticals including infused
beverages. This is an accretive acquisition and gateway to Europe’s 750 million
people accelerating our plan of becoming the world’s largest organic cannabis
brand.”
Global spending on legal cannabis products is projected to
grow from $20 billion in 2018 to more than $63 billion by 2024, according to
Statista (http://ibn.fm/aNowu).
Growth in the recreational and medical cannabis space continues to pick up
steam as countries around the world adjust regulatory guidelines and define
laws allowing cannabis products to be sold and consumed. In October, the world
will be watching as Canada becomes the first G7 country to legalize
recreational cannabis nationwide.
HemPoland,
a leading European manufacturer and marketer of premium organic CBD oils, is
led by one of Europe’s most widely recognized CBD experts, founder and CEO
Maciej Kowalski. This strategic acquisition provides TGOD with access to
HemPoland’s vast distribution network, premium Cannabigold brand and
state-of-the-art hemp oil extraction technologies, in addition to an established
pathway into the European market for TGOD’s medical and recreational products
and licensing deals.
“We are pleased to join forces with the premier brand in
organic cannabis, TGOD, to scale the growth of our business both domestically
and internationally,” Kowalski said in a joint news release. “The market and
demand for premium organic cannabis and CBD oil is just the beginning,
ultimately leading to a variety of higher margin products. Having access to
TGOD’s capital, licensing deals, experienced leadership team, and intellectual
property will significantly drive momentum for our brand and our company. We
are proud to be part of the TGOD family and look forward to becoming the global
leaders in organic cannabis.”
HemPoland was the first company in Poland to obtain a state
license allowing it to grow hemp and manufacture CBD oil products. The company
is vertically integrated with over 1,250 acres of cultivation and multiple
commercial scale extraction units, producing more than 32,000 kg of organic dried
flower and 310 kg of organic CBD oils. Since its founding in 2014, HemPoland’s
expanding distribution network, diverse wholesale model and robust ecommerce
platform has allowed the company to grow quickly across the European Union.
The acquisition cost is comprised of $7.75 million in cash
and 1,968,323 restricted TGOD shares presently worth $7.75 million, with an
additional $10.3 million cash investment to further product development, fund
research and development and continue rapid European expansion. The closing of
this transaction is subject to customary closing conditions and the approval of
the Toronto Stock Exchange.
Established in 2012, TGOD’s motto, “Making Life Better,” can
be seen in its strategic partnerships, top quality management team and
dedication to organic farming and principles. Committed to becoming the global
leader in delivering organic cannabis solutions that enhance people’s lives,
TGOD consistently adheres to the highest levels of excellence.
For more information, visit the company’s website at www.TGOD.ca
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