TransCanna Holdings has signed a definitive acquisition agreement dated July 6, 2019 to acquire The Goodfellas Group.
GoodFellas specializes in branding, sales and marketing in the cannabis and hemp industries. In addition to the sales management team and sales force, the acquisition includes two of GoodFellas existing inhouse brands called Simple Farms and Daily Cannabis Goods. Goodfellas also represents third-party cannabis brands, including Biovelle, a CBC infused coconut oil, which the Company proposes to acquire as announced in its press release dated May 3, 2019.
"Simple Farms is a brand that is set out to enhance the cannabis experience with simplicity and quality," the team with the company explains. "The brands signature product is the Simple Kit. A user-friendly cannabis kit engineered for the beginner cannabis user in mind."
"Daily Cannabis Goods is focused on delivering consumers quality cannabis at a discount compared to competitors pricing. The Daily Classic is the brands leading SKU with three half gram pre-rolls available in their respective Sativa, Hybrid, and Indica blends."
TransCanna intends to devote all of the GoodFellas staff to representing the Company's own brands as it brings their own brands online.
Pursuant to the Agreement, the Company will pay the holders of the Goodfellas membership interests, an aggregate of US$520,000, of which the Company has previously advanced US$358,000 in short term loans, leaving a balance of US$162,000 due at closing. The purchase price represents two times Goodfella's revenues for the fiscal year ended December 31, 2018, as demonstrated in its audited financial statements. The Company will formally close the acquisition under the Agreement on Tuesday July 9, 2019.
The Company anticipates that upon receipt of its state transportation and distribution licenses at either the Modesto or Adelanto facilities, it will then be in the position to begin manufacturing the Daily and Simply products, as well as distributing them through the Company's distribution platform. In the meantime, GoodFellas will continue with their third-party manufacturing and distribution relationships.
"As represented in our investor conference call last week we've accomplished the first goals we had previously set out to complete. Identify a scalable facility which we did through the acquisition of the 196,000 sq ft facility that recently received US eight million dollars in renovation, and retain top tier talent to manage our operations, both of which have been accomplished. The next step is to begin and close the acquisitions we've lined up. This starts the acquisition process," stated Jim Pakulis, CEO of TransCanna.