Golden Leaf Signs Binding Letter of Agreement to
Acquire Cannabis Licenses in Nevada
TORONTO, ONTARIO--(Marketwired – March 27, 2017) – Golden Leaf Holdings Ltd. ("GLH" or the "Company") (CSE:GLH) (OTCQB:GLDFF), a leading cannabis oil solutions company built around recognized brands, is pleased to announce that the Company has signed a binding Letter of Agreement (LOA) to acquire a cultivation license and an extraction license in Nevada from NevWa, LLC (“NevWa”) (doing business as Grassroots) (the “Transaction”).
NevWa’s cultivation and extraction license, based out of Sparks, Nevada, allows for the distribution and sale of products across the state of Nevada, including in Las Vegas and Reno.
Medical marijuana is currently legal in Nevada, and the state’s recreational market is scheduled to launch in July 2017. Nevada’s medical market also enables reciprocity for patients, whereby patients from other states can legally use their medical marijuana cards in Nevada, opening the medical market to the state’s more than 40 million yearly visitors.
Don Robinson, CEO of Golden Leaf Holdings, commented, “Nevada is increasingly being recognized as one of the fastest growing cannabis markets in the U.S. The level of tourism in the state combined with the reciprocity provision in the state’s cannabis laws, positions Nevada to become one of the largest and most dynamic markets in the country. Cannabis brands that are on store shelves in Nevada can create brand loyalty throughout the North America. We are excited about this opportunity and confident that it will bring significant value to our Company and our shareholders.
Pursuant to the Transaction, NevWa will receive from GLH US$1.925 million. The Transaction is subject to certain conditions, including receipt of all regulatory and stock exchange approvals and all other necessary third party consents and approvals.
AC Group Financial Inc. (AC Group) acted as advisor to the Company on this acquisition, as well as the three acquisitions previously announced in recent weeks.
A copy of the investor presentation in connection with the previously announced subscription receipt financing with Canaccord Genuity Corp. is available on the Company’s investor website at goldenleafholdings.us12.list-manage.com.
Golden Leaf’s Competitive Strategy
The chart below illustrates the Company’s strategy to build a market leader in branded cannabis products that is backed by real science and a commitment to lowest cost manufacturing.
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