The Green Organic Dutchman Holdings Ltd. announces it has entered into a share purchase agreement under which it will acquire all of the issued and outstanding shares of Galaxie Brands Corporation with initial share consideration valued at approximately CAD $21 million.
As part of the transaction, the company will also assume $1.3 million of existing shareholder loans of Galaxie, which are non-interest bearing until at least January 31, 2022. The transaction is scheduled to close on or about November 15, 2021, and is subject to customary closing conditions and covenants.
Galaxie is a licensed producer focused on product innovation, branding, and manufacturing 2.0 products. The company creates and produces a range of products including premium cannabis edibles, infused pre-rolls, flavored and full melt vapes, oils, and solventless products. It also provides manufacturing and product development services to partners across Canada.
Following closing of the transaction, TGOD will benefit from improved regional distribution across Canada, providing product expansion capabilities into British Columbia for TGOD and Highly Dutch brands, and into Quebec for Galaxie's Cruuzy brand, which is made for emerging cannabis enthusiasts.
"The acquisition of Galaxie will allow TGOD to expand by increasing scale, innovation, and operating capabilities, with the addition of exciting brands in Canada. We believe our complementary brands and consumer bases will result in stronger revenues and overall financial performance for TGOD, while preparing for a future expansion to the U.S." said Sean Bovingdon, CEO and interim CFO of TGOD.
For more information:
The Green Organic Dutchman