Golden Leaf Holdings Ltd (OTCMKTS:GLDFF) Terms of Tahoe Hydroponics Company And 11T Corp. (Tahoe) Acquisition

Golden Leaf Holdings Terms of Tahoe Hydroponics Company And 11T Corp. (Tahoe) Acquisition

The Golden Leaf Holdings Ltd (OTCMKTS:GLDFF) has announced that it has significantly revised the terms of its acquisition agreement of Tahoe Hydroponics Company And 11T Corp. (Tahoe). The announcement that was made a few months ago was revisited to accommodate long-term market dynamics.

The new deal

According to the companies’ managements, the revised agreement will favor both parties and it was arrived at jointly. Under the fresh agreement, Golden Leaf will invest nearly $33 million in Tahoe’s Nevada and California assets. (Figures are expressed in Canadian Dollars unless stated otherwise).

The $5.3 million of the total $33 million will be payable in cash with the remaining amount settled in Golden leaf stock. The companies have slashed down the payout significantly in the new agreement considering that in the original announcement made on August 13 Golden leaf was willing to spend $52.3 million with approximately $11.1 million cash payment and the $41.3 million balance settled in Golden leaf stock at approximately $0.2050 per share.

The resultant company upon the approval of the partnership agreement could be formidable. The companies will leverage on each other’s diverse assets and expertise to create strong brands that hope to compete well in the North American cannabis market.

Tahoe for its part will bring to the table industrial-grade cannabis. The company has a proven track record of producing cannabis, this coupled with Golden leaf’s proprietary oils and edibles could create a tough force to be reckoned with in the cannabis industry.

Among other benefits Golden Leaf will enjoy from the partnership include an already established cannabis production facility and distribution network in Nevada. Considering that Golden Leaf buys all its raw materials with Tahoe’s Nevada assets it will have access to a cannabis production facility with a capacity of 4,000 pounds yearly. It will also enjoy Tahoe’s rich distribution network in the region.

The company will easily set its feet into California, thanks to Tahoe’s cultivation facility and networks. The new agreement still awaits regulatory approval to be completed after which the partnership agreement will be legally binding.

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