Golden Leaf Enters Into Agreement to Acquire Tozmoz
Golden Leaf Holdings Ltd. (CSE: GLH) has entered into a definitive agreement through its subsidiarity, TZ Acquisition, to purchase Tozmoz LLC. The formal closing of the agreement is reliant on the Oregon Liquor Control Commission’s change of ownership approval.
In accordance with the purchase agreement, all of Tozmoz’s assets such as its Clackamas headquarters facility, will be acquired by Golden Leaf in exchange for $2.8 million in the form of 29,166,667 shares, and a cash advance in the amount of $675,000 USD. Furthermore, an additional payment of up to $400,000 USD will be made in quarterly installments starting in July 2020, and is based on 30% of the revenue generated from Golden Leaf’s new assets of up to $1.2 million USD. Since Golden Leaf had already made several payments to Tozmoz prior to the agreement, the company will only be required to pay cash of approximately $227,000 USD at the time of closing.
Tozmoz is an Oregon licensed cannabis processor, focusing on the extraction of cannabis through various mechanisms, including wiped film and short path distillation, CO2, hydrocarbon and ethanol. In addition, the company also provides its clients with packaging services, product formulation and manufacturing.
Tozmoz is an attractive acquisition for Golden Leaf, as Tozmoz has previously generated substantial revenue by doing toll manufacturing for the firm’s Elysium and tincture products. Although Tozmoz will now be owned by Golden Leaf, it will continue to generate revenue from white-label processing for third parties.
Joel Klobas and Jerry Wallis, who are Tozmoz’s co-founders, will be joining Golden Leaf as the Vice President of Production and consultant to the Senior Vice President of Operations and Vice President of Production, respectively.
Golden Leaf is a Canadian cannabis cultivator, producer, and retailer. The company distributes its products through its retail brand, Chalice Farms.
Golden Leaf Holdings Ltd. is currently trading at $0.025 on the CSE.
Information for this briefing was found via Sedar and Golden Leaf Holdings Ltd. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.