PeakBirch Logic announces acquisition of Stul Ltd
by CM Staff
Acquisition accelerates goal to expand cannabis sales in the U.K. market
VANCOUVER, BC — PeakBirch Logic Inc. has announced the closing of the acquisition of Stul Ltd., located in London, United Kingdom. PeakBirch has acquired all of the issued and outstanding shares of Stul, including all of the existing assets of Stul, for a purchase price of 250,000 GBP (Cdn$432,425) payable by the issuance of 10,810,625 common shares of PeakBirch at a price of $0.04 per Common Share.
8,648,023 Common Shares were issued to the sole shareholder of Stul on the closing of the Acquisition, and the remaining 2,162,600 Common Shares will be issued upon Peakbirch confirming that Stul’s working capital is at least GBP350,000. In the event Stul’s working capital is less than the Working Capital Target, the Purchase Price (and accordingly the number of Common Shares issuable under the Acquisition) shall be reduced on a dollar-for-dollar basis. Assuming that all of the Compensation Securities are issued, the former shareholder of Stul will hold 10,810,625 Common Shares representing 9.91% of the Common Shares and will not beneficially hold any other securities of PeakBirch.
As part of the Acquisition, PeakBirch acquired Hot Box Herb, a leading brick and mortar cannabis accessory shop (a headshop) and e-commerce website. Based in Chelmsford, Essex, the headshop has become Southern England’s most reputable cannabis accessory shop within only 3½ years of being open and offers the largest selection of quality cannabis accessories and products in the region with over 1800 active SKUs.
Hot Box Herb owns and manufactures its own organic branded CBD, named New Era Wellness, consisting of a product line of topicals, edibles, and flower. New Era is one of Europe’s premier consumer CBD companies, with 150% year-over-year sales growth and an average gross margin of 200%. PeakBirch anticipates increasing the value of the New Era brand by expanding brand coverage and products to more stores and online retailers and increasing B2B sales.
The U.K. legalized cannabis market is expected to be worth USD 4.3 billion by 2024. Therefore, this deal provides an excellent growth opportunity to expand the family of PeakBirch services and products across Europe.
“This acquisition is the first stepping stone we felt we needed to take to establish a foothold in the U.K. using the Hot Box Herb brand,” said Marc Mulvaney, CEO of PeakBirch, in a statement. “We are very excited to be welcoming our new experienced team members to the PeakBirch family. With the new addition of a brick and mortar store, this allows PeakBirch to run beta tests on their same day delivery platform that is planned to be resold to other businesses.”