The Green Organic Dutchman Holdings announces acquisition of Galaxie Brands Corporation
by CM Staff
Galaxie's 26,000 square feet Ontario facility with 2.0 capabilities is fully licensed by Health Canada and operational, and is expected to provide TGOD with additional cultivation capabilities.
TORONTO &mdsah; The Green Organic Dutchman Holdings Ltd., a producer of organically grown cannabis, announces that it has entered into a share purchase agreement under which TGOD, or a wholly-owned subsidiary of TGOD, will acquire all of the issued and outstanding shares of Galaxie Brands Corporation with initial share consideration valued at approximately CAD $21 million. As part of the Transaction, the Company will also assume $1.3 million of existing shareholder loans of Galaxie, which are non-interest bearing until at least January 31, 2022. The vendors of the Galaxie Shares are also entitled to earn up to CAD $15 million in additional shares of TGOD, subject to achievement of certain financial milestones by December 31, 2022. The Transaction is scheduled to close on or about November 15, 2021, and subject to customary closing conditions and covenants.
Galaxie is a licensed producer focused on new products, branding and manufacturing 2.0 products. The company creates and produces a range of products including cannabis edibles, infused pre-rolls, flavoured and full melt vapes, oils and solventless products. It also provides manufacturing and product development services to partners across Canada.
- TGOD will gain exposure to the valuable edible category, through Galaxie’s exclusive joint venture in Canada with a major edible brand in the U.S. which sells a range of cannabis edibles made with unique cannabinoids and flavors.
- TGOD will leverage Galaxie’s diverse 2.0 portfolio and gain access to its product development expertise and formulation lab capabilities. TGOD will expand its offering to include innovative infused pre-rolls, flavoured and full melt vapes, and solventless products.
Following closing of the Transaction, TGOD will benefit from improved regional distribution across Canada, providing product expansion capabilities into British Columbia for TGOD and Highly Dutch brands, and into Quebec for Galaxie’s Cruuzy brand, which is made for emerging cannabis enthusiasts.
Galaxie’s 26,000 square feet Ontario facility with 2.0 capabilities is fully licensed by Health Canada and operational, and is expected to provide TGOD with additional cultivation, processing, packaging, extraction, and product development capabilities. The Galaxie Facility, coupled with TGOD’s existing 166,000 sq. ft. growing operations in Ancaster, Ontario, and 80,000 sq. ft. of available cultivating and manufacturing space in Valleyfield, Quebec, positions TGOD, following the closing of the Transaction, to continue to expand, and move towards profitability. TGOD anticipates that its own sales license tolling business will be enhanced with Galaxie’s contract manufacturing capabilities.