Golden Leaf Holdings (GLH) Announces New Partnership

Spotlight Companies |

Golden Leaf Holdings (GLH), a leading provider of cannabis oil and solutions for North America, announced a new agreement in Washington state in a press release. The partnership is with BMF Washington, a leading cannabis company in Washington, and includes the acquisition of assets in addition to the provision of goods and services, though none will require a license from the Washington Board of Liquor and Cannabis.

The deal includes $15 million going from Golden Leaf to BMF Washington, $3 million in cash and $12 million in Golden Leaf stock, within 45 days as well 300,000 warrants exercisable for two years.

"Washington, in addition to being double the size of Oregon, has a more settled regulatory environment,” said Don Robinson, CEO of Golden Leaf Holdings. “Through this strategic relationship, GLH has aligned itself with an established producer/processor with an experienced management team that currently enjoys a significant market share of what continues to be a very immature and fragmented oil and derivatives market."

The deal is anticipated to bolster the bottom line for Golden Leaf by being EBITA accretive. The state of Washington has a residency requirement for licensed operators and individual owners, so the deal will license intellectual property to BMF as well as providing service and non-cannabis materials, lease equipment and property, and lease employees.

Washington’s cannabis market represents a $1.3 billion opportunity, so the chance for growth presented to Golden Leaf Holdings by a toehold there could be very large.

Update of Oregon Operation Included As Well

The press release also included an update on Golden Leaf’s continued expansion of its Oregon. With the completion and implementation of recreational regulations there, expected on October 1, 2016, that growth is expected to increase exponentially. However, even prior to that, Golden Leaf’s success in the medicinal market is considerable.

The company already intends to launch an expanded brand portfolio in the first half of 2016, one that’s poised to make 2016 and beyond very lucrative for Golden Leaf.

"GLH remains very excited about the long-term opportunity in Oregon and is extremely well-positioned to take advantage of the recreational market,” said Robinson. “We are adjusting our business plan accordingly, ensuring we are in a position to maximize the short and long term growth potential in both the medicinal and recreational markets."

Included in the new line of products are High THC, Solvent-Free Cannabis Oil Vaporizer Cartridges, High CBD C02 Hemp Oil Vaporizer Cartridges, Artisan Edibles by GoldenXTRX, and Manufacturing and distribution of Dixie Elixir and Edibles product lines. The company’s also delving into marijuana flower products with its XTRX Farms Marijuana Flower, XTRX Farms Pre-Rolled Marijuana Joints, and Marijuana Cigarettes.

"We have tremendous confidence that GLH represents the leading Cannabis model in North America,” added Robinson. “We believe that continued growth in Oregon, refinements in general and administrative costs, and our strategic relationship in Washington will help accelerate the economic realization."

Disclosure: In the purview of Section 17(B) of the Securities Act of 1933 and in the interest of full disclosure, we call the reader's attention to the fact that Equities.com, Inc. may be compensated by the companies profiled in the Spotlight Companies section. The purpose of these profiles is to provide awareness of these companies to investors in the micro, small-cap and growth equity community and should not in any way come across as a recommendation to buy, sell or hold these securities. Equities.com is not a registered broker, broker dealer, investment advisor, analyst, investment banker or underwriter. All profiles are based on information that is available to the public. The information contained herein should not be considered to be all-inclusive and is not guaranteed by Equities.com to be free from misstatement or errors. Readers are reminded to do their own due diligence when researching any companies mentioned on this website.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Comments

Emerging Growth

Nano One Materials Corp.

Nano One Materials Corp is a technology company. The Company manufactures storage materials for lithium ion batteries.

Private Markets

XY Find It

Founded by serial entrepreneur Arie Trouw, XY Findables follows a single guiding principle: customers should never lose anything important again. With over 50,000 users around the world, more than 100,000…

D-Wave

D-Wave Systems is the first quantum computing company. Its mission is to integrate new discoveries in physics, engineering, manufacturing, and computer science into breakthrough approaches to computation to help solve…