Green Growth Brands Inc. has agreed to acquire Florida's Spring Oaks Greenhouses Inc. The deal gives the rapidly growing Columbus company the ability to open dispensaries in Florida.
Spring Oaks holds a medical marijuana dispensary license and authorization to operate as a medical marijuana treatment center in Florida, New Cannabis Ventures reports. The license, received in April, grants the right to open up to 35 dispensaries, subject to an increase to 40 when the Florida Medical Marijuana program surpasses 300,000 patients.
Completion of the acquisition is expected in August 2019 and remains subject to regulatory approval and typical closing conditions.
The transaction is expected to be for $26 million in cash, $17 million in common shares of GGB stock, and a convertible secured promissory note for $11.4 million.
“Entering Florida through the Spring Oaks acquisition will be a great addition to our existing MSO presence in Nevada and Massachusetts, as well as to our CBD business that already has a national presence," Green Growth Brands CEO Peter Horvath told New Cannabis Ventures. "We admire several of the existing operators in the state and Florida is a special market, with favorable financials implications for the best operators. We look forward to quickly scaling our operations in the state and bringing our expertise to every patient.”
GGB also agreed with ZLJT LLC and Arizona Natural Pain Solutions, jointly referred to as Desert Rose, to terminate the previously announced definitive agreement to acquire control of the entity.
“Desert Rose is a well-run operation,” Horvath said. “However, we have made the strategic decision to turn our focus to Florida, where we believe we can grow our presence and brand recognition across the state at scale.”