Columbus-headquartered Green Growth Brands Inc. and MXY Holdings LLC (Moxie) have terminated a proposed business combination as the market adjusts to the changing macro environment. GGB plans to focus on its rapidly growing CBD and multi-state operator lines of business.
“We are aggressively growing our businesses across America as we drive to become a leading cannabis retailer in the country,” GGB CEO Peter Horvath said, in a statement. “While we continue to be open to collaborating with other industry leaders, we need to ensure we are focused on building our operational strengths, maximize our returns and, most importantly, avoiding excessive dilution to our shareholder base.”
GGB is continuing with its aggressive growth strategy in both the MSO and CBD businesses. The MSO business now includes a 47 dispensary rollout in three key states, and the company will continue its expansion in this line of business, opening its remaining 45 dispensaries with the same speed and energy it dedicated to its North American CBD network.
There is no break fee to be paid in connection with this termination. GGB has agreed to repay the advance of $5 million by Jan. 31, 2020, and to reimburse Moxie for $4 million in deal fees on or before July 1, 2020, with both payments to be made in cash.
