BGP Acquisition Corp. and Craft 1861 Global, Inc. enter into definitive business combination agreement
by CM Staff
Craft Global shareholders are rolling 100% of their equity, resulting in a pro forma market capitalization of approximately US$580 million.
VANCOUVER — BGP Acquisition Corp. and Craft 1861 Global, Inc., a lifestyle and wellness cannabis brand in the United States, announces that they have entered into a definitive business combination agreement, which is intended to constitute the Corporation’s qualifying transaction.
“After spending the past decade refining our products and approach to the burgeoning cannabinoid industry, we are excited about the inflection point we find ourselves at and believe this combination with BGP will help support the growth of the Craft 1861 brand on a global scale”, said Robert Aranda, Chief Executive Officer.
BGP will issue 430,000 proportionate voting shares (convertible into 43,000,000 subordinate voting shares) to Craft Global shareholders in upfront equity consideration, complemented by an earn-out of an additional 100,000 Proportionate Voting Shares (convertible into 10,000,000 subordinate voting shares) based on certain trading price milestones.
New Craft (as defined below) will be fully-funded for its business plan at closing, with over US$167.8 million in cash3 (assuming no redemptions of Class A Restricted Voting Shares) and a committed and undrawn credit line for US$100 million (assuming completion of ongoing negotiations).
Craft Global shareholders are rolling 100% of their equity, resulting in a pro forma market capitalization of approximately US$580 million.
“We couldn’t be happier to announce this combination with Craft Global. When we first met with Robert and his team almost a year ago, we were immediately impressed by their passion for their products and their unique and refreshing approach to the industry. Since that time we have watched them execute time and again by signing leading international entities under their Strategic Partnerships and delight us with their high quality and effective products. With the current macro-economic backdrop and a particularly challenging cannabis capital market, we feel very fortunate to be in a position to announce such a strong qualifying transaction and we have confidence in the Craft Global team to make this company into a global leader” said Ruth Epstein, CEO and Chairwoman of BGP.
