New Leaf Ventures has entered into a letter agreement with Zen Asset Management and its parent company, Artizen Asset Management. The Letter Agreement outlines the general terms and conditions pursuant to which New Leaf and ZAM would potentially undertake a business combination. The Proposed Transaction is subject to a number of conditions, including due diligence and the negotiation of a definitive agreement.
ZAM is a diversified asset management company that was founded to acquire, develop, and support companies and technologies in the emerging cannabis industry. ZAM primarily does so in Washington state, where it generates revenue by providing leasing, licensing, management, staffing, and supplies to cannabis production facilities. ZAM’s existing clients operate four licensed cannabis cultivation facilities and one processing facility in Washington, with about 180,000 square feet of canopy, of which about 70,000 square feet is used to produce about 8,000,000 grams of biomass annually.
“The Proposed Transaction provides the prototypical example of our plan to build a portfolio of investment-grade opportunities in the cannabis sector,” said Michael Stier, the Company’s CEO. “We’re particularly excited by the prospect of onboarding ZAM into our pre-existing footprint in Washington state. ZAM’s clients have successfully marketed Artizen™ branded products that have commanded a strong following in that market. We believe that those results are scalable with the right investment and support, both of which we look forward to providing as we execute on our previously-announced plans to build compelling shareholder value in the emerging cannabis industry.”