SLANG Worldwide to Acquire Colorado Cannabis Cultivator Pleasant Valley Ranch
SLANG Worldwide Inc. (CNSX: SLNG) (OTCQB: SLGWF)—a global producer of packaged cannabis consumer products—has entered into an agreement to acquire Colorado-based cannabis cultivator Pleasant Valley Ranch, a key supplier of raw materials for SLANG-branded products in Colorado.
The purchase of Pleasant Valley marks another milestone in SLANG’s strategy of consolidating its supply chain in Colorado. The transaction gives Toronto-based SLANG greater assurance of a supply of raw materials in the $1.7 billion Colorado market, while reducing input costs and improving gross margins.
SLANG will acquire Pleasant Valley for consideration comprising a non-material amount of cash and common shares of the company. The acquisition will be completed by way of three-cornered amalgamation and is anticipated to close in the fourth quarter of 2020. Closing of the acquisition is subject to the satisfaction or waiver of customary closing conditions, including applicable regulatory approval by the Colorado Department of Revenue’s Marijuana Enforcement Division.
Pleasant Valley, a privately-owned company located in Carbondale, Colo., has 1,600 square feet of greenhouse cultivation area, and a five-acre outdoor facility that produces an authentic, naturally cultivated product using snowmelt water. It currently has a capacity of 3,600 plants and produces approximately 4,800 pounds annually. It has projected that it will be able to double its capacity by 2021.
For further information, please visit SLANG’s official press release.