- 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://cnw.fm/c1AUb). 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://cnw.fm/aNOb3). 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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