LEEF Brands to acquire cannabis concentrates brand

LEEF Brands has entered into an agreement to acquire Standard Holdings Inc., the parent company of HIMALAYA VAPOR, a California-based cannabis concentrates brand known for its premium, full-spectrum cartridges and natural formulations

Under the terms of the agreement, LEEF will acquire HIMALAYA for 13,688,000 common shares of the company, which includes management incentive shares, and will issue warrants with an aggregate value of US$100,000 priced at $0.25 CAD per share, representing total consideration of approximately US$2.5 million.

LEEF's Salisbury Canyon Ranch provides some of the cleanest and lowest-cost cannabis inputs in the industry at significant scale. By integrating HIMALAYA into its platform, LEEF expects to immediately improve unit economics by lowering input costs. This change is anticipated to generate meaningful free cash flow from HIMALAYA during its first year of combined operations.

"We are excited to bring HIMALAYA into the LEEF platform," LEEF Brands CEO Micah Anderson said. "This is exactly the type of acquisition we are focused on: a premium, authentic brand with strong customer loyalty that we can scale more efficiently through our vertically integrated infrastructure. Having worked with the HIMALAYA team for over five years, we have strong conviction in both the brand and its leadership, which further reinforces our confidence in this partnership. By leveraging low-cost inputs from Salisbury Canyon Ranch, we believe we can significantly improve margins while expanding distribution across California and into new markets over time."

"We have found the right partner in LEEF," said Noah Farb, chief financial officer of HIMALAYA. "From day one, our focus has been on making authentic, full-spectrum products without cutting corners. LEEF gives us the platform to scale that vision – expanding our reach across California and into new markets – while staying true to what has made HIMALAYA resonate with consumers."