TGOD to acquire HemPoland
The Green Organic Dutchman (TSX: TGOD) announced it has signed a definitive agreement to acquire 100% of HemPoland in an immediately accretive cash and share transaction. HemPoland is a leading European manufacturer and marketer of premium organic CBD oils. Here are some highlights:
Acquisition cost of US$7.75 million in cash and 1,968,323 restricted TGOD shares currently worth US$7.75 million (~CAD$20.4 million combined) with an additional US$10.3 million (CAD$13.5 million) cash investment for rapid European expansion.
Additional performance based incentives of up to US$12 million (CAD$15.8 million) for delivery of US$32 million (CAD$42.1 million) of EBITDA in fiscal 2021
European gateway with distribution channels to over 750 million people and sales in over 700 locations across 13 countries
Premier selling CBD oil brand “Cannabigold”, a recognized leader in the EU
32,000 kgs of dried flower production from 1,250 acres of cultivation
Leading innovative organic brand with diverse, novel product offerings and unique IP.
This acquisition should enable TGOD to expand its global presence in the international markets. We believe this is the strategic direction for Canadian cannabis Licensed Producers.